Question

(I) Banks are financial intermediaries that accept deposits and make loans.

(II) The term "banks" includes firms such as commercial banks, savings and loan associations, mutual savings banks, credit unions, insurance companies, and pension funds.

A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

Answer 1

A) (I) is true, (II) false.

Step-by-step explanation:

Banks are financial intermediaries that accept deposits and make loans.

However the term "banks" does not regularly include firms such as credit unions, insurance companies, and pension funds.; because credit unions are not-for-profit organisations and insurance companies are a non-bank financial institution that provides its customers risk protection depending on the level of policy they have sold to such customers. Pension funds are more like deposits made against retirement.