Final answer:
An account for a person with $2 million of assets is NOT considered an institutional account according to FINRA, as institutional accounts are typically large entities like banks or investment firms. Option D
Step-by-step explanation:
According to the Financial Industry Regulatory Authority (FINRA), an institutional account is typically defined as an account owned by a bank, an insurance company, a registered investment company, a registered investment adviser, or any other entity with sizeable assets that invests on a scale comparable to these entities.
Based on the given options, the one that is NOT considered an institutional account is D. An account for a person with $2 million of assets. This is because, despite having a significant number of assets, an individual is not regarded as an institutional investor unless they are a large entity engaging in substantial investment activity.
The great advantages of bank accounts which provide financial investors with very easy access to their money, and the security offered by the Federal Deposit Insurance Corporation (FDIC), ensure that bank accounts are considered low-risk with a low rate of return but high liquidity. These features contrast with the types of accounts and investments typically managed by institutional investors. Option D