Question

Which of the following is a deposit institution?

A. A life insurance company
B. An investment company
C. A credit union
D. A mortgage company

Answer 1

Option B An investment company

Step-by-step explanation:

A deposit institution is a financial institution which is allowed to accept deposited money from their customers. The common examples of deposit institution include saving banks and commercial banks. Another type of financial institution who can take deposit from consumers is investment company. Investment company get the funds from their investors through mutual fund scheme. The funds are pooled from investors and then used in stock investment. Some profit earned from the investment are given back to the investors.

Answer 2

"B. An investment company" would be a deposit institution, since for this institution to function it needs deposits from consumers in order to give those consumers a return on their investment.