Which term describes a financial institution that accepts deposits and provides loans?

• A. Banc
• B. Credit Union
• C. Investment Firm
• D. Brokerage

Answer: (B)

A credit union is a depository, member-owned financial institution that accepts deposits from its members and makes loans to them. This combination—taking deposits and providing loans—is the defining role of credit unions, and their deposits are insured by the NCUA, giving savers protection similar to banks.

An investment firm focuses on managing and advising on investments rather than accepting everyday deposits or offering typical consumer loans. A brokerage handles buying and selling securities for clients and does not operate as a typical depository that accepts deposits. The term “Banc” isn’t a standard designation for a financial institution in this context.

So, the term that fits a financial institution that accepts deposits and provides loans is credit union.