What Are Depository Institutions?

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Let’s take a closer look at Depository Institutions. These may be banks, credit unions, and other institutions that raise and lend capital.

The depositors benefit as they receive a return on their funds without having to contract with the borrowers and manage their loans. The borrowers, on the other hand, obtain the funds that they need without having to search for investors who will trust them to repay their loans.

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