Multiple Choice Questions ich of the following institutions is not part of the modern banking syster a. credit unions b. savings and loan associations c. mutual funds d. mutual savings banks Answer: 2.The most basic functions of depository institutions are a. safekeeping for depositors b. record keeping for depositors c. efficient and economical transfer of payments d. accepting deposits and granting loans Answer 3. Which of the following is not an asset of depository institutions? a. cash b. unsecured loans c. time deposits d. U.S. government securities Answer: 4.The principal liabilities of all depository institutions are: a. certificates of deposits b. deposits c. loans d. all the above Answer 5.Credit unions are: a. for profit organizations b. made up of individuals who possess common bonds of associati e institutions that derive funds from investmont nnt