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Comparing Financial Institutions Classify the types of financial institutions mentioned in this chapter as either depository or nondepository.

Explain the general difference between depository and nondepository institution sources of funds. It is often said that all types of financial institutions have begun to offer services that were previously offered only by certain types.

Consequently, the operations of many financial institutions are becoming more similar. Nevertheless, performance levels still differ significantly among types of financial institutions. Why?

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