Business, 28.09.2020 14:01 breannamartinez9486

Samantha is trying to decide where she should place her extra money. She has heard of two types of financial institutions—depository and non-depository. She isn’t sure what makes them different from one another. How would you explain the main difference between these two institutions? Depository institutions earn money from what customers put into the institution.

Depository institutions gain money from companies (insurance, mortgage, etc.).

Non-depository institutions earn a profit from the interest paid on loans made to customers.

Non-depository institutions are usually federally insured.

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