Which of Following is Not a Common Feature of a Financial Institution?

Which of the following is not a common feature of a financial institution?

A. Paper checks

B. Access to investment products

C. Direct deposit

D. Access to ATM

Ans. B. Access to investment products.

All major banks and financial institutions have investment products, but not all financial institutions. Some fundamental financial institutions, such as a local credit union or a community bank, typically have fundamental services such as loans, savings accounts, and checking accounts. They may not have the resources or the correct strategy to provide many investment products such as stocks, bonds, or mutual funds. These are typically offered by specialized firms such as wealth management firms or brokerage firms.

The others are standard services provided by just about all banks. ATM usage and direct deposit are standard services for a checking or savings account. Although paper checks are less frequently used these days, they are still widely provided by most banks and credit unions, particularly for business accounts or those who prefer the old style of banking.