Vidyalelo
Management · Q188

International Finance and Treasury

Graduate and Post Graduate · Management · question 188

Q188

Institutions classified as depository ones and have loans as their major assets are classified as

A.
commercial banks
Answer
B.
commercial mortgages
C.
credit mortgages
D.
credit derivative

Answer: Option A

Solution

Answer: Option A
Solution:
Institutions classified as depository ones and have loans as their major assets are classified as commercial banks. A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.