Question

The main pupose of an investment institution is to A. Allow customers to deposit money into accounts at no charge B. Use deposited money to purchase stocks and bonds in order to make a profit C. Provide guranteed payments to depositors under specific conditions D Hold deposits in accounts and use that money to offer loans.

Answer 1

The answer is "Option D".

Step-by-step explanation:

Credit unions or financial institutions, among many others, have depository institutions. It provides customers with a reliable, stable but easy way of saving money or residences and businesses credits. The bank provides interest rates on deposits and uses that money to lend at rising interest rates.

Its main source of income for depositary entities is interest from loans. They build consumer deposits and facilitate economic development in households and businesses.