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What are the functions of depository​ institutions? The functions of depository institutions include​ _______.
a. implementing monetary policy
b. providing debt counseling
c. providing credit ratings
d. creating liquidity

Respuesta :

Answer: Creating liquidity

Explanation:

Depository institutions includes commercial banks, credit unions, savings and loans. Depository institutions receive money from the depositors and lend out to their borrowers.

The primary function of the depository institutions is to create liquidity by making credit available to borrowers in the form of loans. Depository institutions also receive deposits from their customers in exchange for interest and then use them to create loans for people.

ayfat23

The function that can be associated to depository institutions is D:. creating liquidity.

  • Depository institution can be regarded as a financial institution in the United States. They include institution such as savings bank, commercial bank as well as savings and loan associations.

  • They helps in creation of liquidity and carry out those function associated with the financial institution.

Therefore, option D is correct.

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