The traditional role of savings and loan associations has been to

A) finance business purchases of capital goods.
B) purchase corporate stocks on behalf of its depositors.
C) make installment loans to consumers.
D) make mortgage loans on houses.

Question

Angelica Culaway · Accepted Answer

Final Answer : D, Explanation :  Savings and loan associations traditionally specialize in making mortgage loans on houses. This is because they primarily use their depositors' funds to make long-term loans to home buyers, which are secured by the purchased property. This distinguishes them from commercial banks, which tend to make more diverse types of loans, including business loans, personal loans, and credit card loans. Therefore, option D is the best answer.

The traditional role of savings and loan associations has been to

A) finance business purchases of capital goods.
B) purchase corporate stocks on behalf of its depositors.
C) make installment loans to consumers.
D) make mortgage loans on houses.

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Learning Objectives

Learning Objectives

Related questions

The traditional role of savings and loan associations has been toA) finance business purchases of capital goods.B) purchase corporate stocks on behalf of its depositors.C) make installment loans to consumers.D) make mortgage loans on houses.

Definitions

Learning Objectives

Learning Objectives

Related questions

The traditional role of savings and loan associations has been to

A) finance business purchases of capital goods.
B) purchase corporate stocks on behalf of its depositors.
C) make installment loans to consumers.
D) make mortgage loans on houses.