Institutions That Accept Deposits from Individuals and Organizations,against Which Depositors

question 22

Multiple Choice

Institutions that accept deposits from individuals and organizations,against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:

• A)depository institutions.
• B)financial market institutions.
• C)insurance companies.
• D)none of the above.

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be repaid at a specified maturity date with interest.

Straight Line Amortization

A method of evenly spreading the cost of an asset over its useful life for accounting and tax purposes.

Straight Line Amortization

A technique for uniformly distributing the expense of an intangible asset across its lifespan.

Voting Shares

Securities affording the owner the ability to vote on important company decisions, including who gets elected to the board.