For ideological reasons, your friend Jorge wants to only work with a non-depository financial institution for his new startup. Which kind of institution could you safely recommend to him?

commercial bank

credit union

investment bank

savings and loan association

1 answer

For Jorge's preference to work with a non-depository financial institution, you could recommend an investment bank.

Investment banks focus on services such as underwriting, facilitating mergers and acquisitions, and providing advisory services, rather than accepting deposits like traditional banks or credit unions. The other options—commercial banks, credit unions, and savings and loan associations—are all depository institutions that accept deposits from customers.