Difference between depository and non depository institution?

Answer 1

Difference between depository and non depository institution

Answer 2

Depository institutions---is a financial institution (such as a savings bank, commercial bank, savings and loan association, or credit union) that is legally allowed to accept monetary deposits from consumers.It contribute to the economy by lending much of the money saved by depositors.

financial non depository institutions are financial intermediaries that do not accept deposits but do pool the payments of many people in the form of premiums or contributions and either invest it or provide credit to others. Hence, nondepository institutions form an important part of the economy. These institutions receive the public's money because they offer other services than just the payment of interest. They can spread the financial risk of individuals over a large group, or provide investment services for greater returns or for a future income.

Nondepository institutions include insurance companies, pension funds, securities firms, government-sponsored enterprises, and finance companies. There are also smaller nondepository institutions, such as pawnshops and venture capital firms, but they constitute a much smaller portion of sources of funds for the economy

Answer 3

Depository institutions are financial institutions that accept deposits from customers, such as banks and credit unions, and provide services like checking and savings accounts. Non-depository institutions, on the other hand, do not accept deposits but provide other financial services like investment banking, insurance, and brokerage services. Depository institutions are typically more heavily regulated due to their role in holding customer funds, while non-depository institutions may have more flexibility in their operations.

Answer 4

Well, honey, a depository institution is where you can deposit your money and they'll pay you some interest for the pleasure. Non-depository institutions, on the other hand, don't take your money directly but offer services like loans, investments, and financial advice. So, one is like a piggy bank, and the other is more like a financial advisor with a fancy suit.

Answer 5

Ah, the difference between depository and non-depository institutions is like the difference between painting with oils and watercolors. Depository institutions, like banks, take deposits from customers and provide loans. Non-depository institutions, such as investment banks, do not take deposits but offer services like underwriting and financial advice. Each plays a unique role in the financial landscape, just like every brushstroke adds depth and beauty to a painting.

Answer 6

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