Which of the Below Statements Is TRUE

question 43

Multiple Choice

Which of the below statements is TRUE?

• A) Depository institutions do not include commercial banks (or simply banks), savings and loan associations (S&Ls), savings banks, and credit unions.
• B) Since their funds are raised through deposits and other funding sources, depository institutions cannot make direct loans to various entities or invest in securities.
• C) Depository institutions derive their income from two sources: (1) the income generated from the loans they make and the securities they purchase, and (2) fee income.
• D) It is uncommon to refer to S&Ls, savings banks, and credit unions as thrifts, which are specialized types of depository institutions.

---

Definitions:

Suffix

A letter or group of letters added at the end of a word to modify its meaning or change it into a different word form, such as a noun to an adjective.

Consonant

A basic speech sound in which the breath is at least partially obstructed, and which can be combined with a vowel to form a syllable.

Arthritis

A condition characterized by inflammation of one or more joints, leading to pain and stiffness that can worsen with age.

Dermatology

The branch of medicine dealing with the skin, nails, and hair, and their diseases.