multiple choice question: why are life insurance companies, finance companies, and investment banks called…

multiple choice question: why are life insurance companies, finance companies, and investment banks called nonbank financial institutions? because they do not accept deposits or make savings accounts available like banks do. because they are not insured by the fdic. because commercial banks can make loans, whereas nonbank financial institutions cannot. need help? review these concept resources. read about the concept

multiple choice question: why are life insurance companies, finance companies, and investment banks called nonbank financial institutions? because they do not accept deposits or make savings accounts available like banks do. because they are not insured by the fdic. because commercial banks can make loans, whereas nonbank financial institutions cannot. need help? review these concept resources. read about the concept

Answer

Brief Explanations:

Non - bank financial institutions such as life insurance companies, finance companies, and investment banks are not commercial banks. They are not insured by the Federal Deposit Insurance Corporation (FDIC) which is a key differentiator from commercial banks. Commercial banks can accept deposits and make loans while non - bank financial institutions may have different functions and regulatory treatments.

Answer:

Because they are not insured by the FDIC.