Mutual savings institutions are owned by the individuals who deposit money in the institution, representing a cooperative ownership structure rather than stock ownership. The correct option is b) the individuals who deposit money in the institution.
Mutual savings institutions are owned by the individuals who deposit money in the institution, which corresponds to option b. Unlike traditional banks, mutual savings institutions operate under a mutual or cooperative structure. Customers, or depositors, essentially become members and owners of the institution by opening savings accounts or making deposits. The ownership interest is not represented by shares of stock but rather by the amount of money deposited.
In this context, depositors have a say in the institution's decision-making processes, such as electing board members. Mutual savings institutions prioritize serving the financial needs of their members rather than maximizing profits for external shareholders. This structure aligns the institution's interests with those of its members, fostering a cooperative and community-focused approach to financial services. The U.S. government and the FDIC (Federal Deposit Insurance Corporation) play regulatory roles and ensure the safety and soundness of the institution but do not own mutual savings institutions.
The correct option is b).