What type of institutions are known for accepting deposits and providing loans?

Depository financial institutions are known for accepting deposits and providing loans. This category of institutions includes various types such as commercial banks, retail banks, and credit unions, all of which play a pivotal role in the financial system by facilitating savings and lending.

Depository financial institutions primarily operate by accepting customer deposits, which are then pooled together and used to provide loans to individuals and businesses. This process not only helps customers earn interest on their deposits but also enables them to access credit when needed. By functioning as intermediaries, these institutions help promote economic activity by ensuring that funds are available for investment and expenditures.

In this context, the other types of institutions listed, such as retail banks, commercial banks, and credit unions, are indeed manifestations of depository financial institutions. However, specifying "depository financial institutions" encompasses the broad range of entities that fulfill these essential functions within the banking system.