36. Which of the following statements is/are TRUE regarding Savings &Loan; Assoc

Question

36. Which of the following statements is/are TRUE regarding Savings &Loan; Associations 9 (2 points) and/or Mutual Savings Banks? CIRCLE ALL THAT APPLY. Savings & Loan Associations are authorized to offer savings accounts to depositors but not demand deposits which can be withdrawn at any time. Savings & Loan Associations offer mortgages to customers and as a group are the largest provider of funds for mortgages in the United States. The Federal Savings and Loan Insurance Corporation (FSLIC) provides deposit insurance for customers of Savings & Loan Associations with similar protection for depositors as provided by the FDIC for depositors at commercial banks. a. b. c. d. Mutual Savings Banks have more flexibility in their investing practices tharn Savings & Loan Associations.

Explanation / Answer

d) TRUE : MUTUAL saving banks are more flexible in their investing practices than saving and loan associations

because A mutual savings bank is institution rented by local government, without stock, that is kept by its members who support a fund. After this fund claims, lends, etc., are compensated. Profits after deductions are shared among supporters. The institution is intended to provide a safe place for individual supporter to save and to invest those savings in mortgages, loan and bonds and to share in any profits or loses.and saving and loan asssociations are thrift institutions it can be ajoint stock comapany in which it cannot traded publicly and is no longer tmutual association, and depositors and borrowers no longer have membership rights

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