Question

Which of the following is NOT a type of financial institution?

• A. Banks
• B. Retail stores
• C. Non-banking financial institutions
• D. Insurance companies

Answer 1

Answer:

B. Retail stores

1. The main types of financial institutions include

   • Banks (which accept deposits and provide loans)

   • Non-banking financial institutions (NBFIs)

   • Insurance companies

2. Retail stores are commercial establishments that

   • Sell goods directly to consumers

   • Don't accept deposits

   • Don't provide loans

   • Don't offer financial services as their primary business

   • Don't deal with financial intermediation

• While retail stores may handle money and sometimes offer store credit cards (usually through partnerships with actual financial institutions), they are not classified as financial institutions themselves.