Which of the following is a non-deposit-taking financial institution?

• A. Securities Firms
• B. Commercial Banks
• C. Savings Institutions
• D. Credit Unions

Answer: (A)

The concept here is whether an institution takes deposits from savers. Securities firms are non-deposit-taking because they fund themselves through capital markets—underwriting, issuing securities, trading, and brokerage—rather than by taking customer deposits. They don’t offer typical bank deposit accounts like checking or savings to the public. The other options are deposit-taking institutions: commercial banks, savings institutions, and credit unions all rely on deposits to fund their loans and operations and provide deposit accounts to customers.