depository financial institution

Friendly

Definition

Depository Financial Institution (DFI): A type of bank or financial organization that accepts money from customers (deposits) and uses that money to lend to others. This means they help people save their money safely and also help others borrow money when needed.

Usage Instructions

You can use "depository financial institution" when talking about banks that hold your money and offer loans. It is a formal term, often used in financial discussions or documents.

Example

• Simple: "I opened a savings account at my local depository financial institution to save money for a new car."
• Complex: "Depository financial institutions play a crucial role in the economy by accepting deposits from savers and providing loans to borrowers."

Advanced Usage

In advanced discussions, "depository financial institution" might be used in the context of regulations, economic impact, or financial services. For example: - "The role of depository financial institutions in monetary policy is significant as they influence the money supply through their lending activities."

Word Variants

• Depository: Referring to a place where things are stored (like money).
• Financial Institution: A broad term that includes banks, credit unions, and other organizations that provide financial services.

Different Meanings

The term "depository" can also be used in other contexts, such as: - Depository Library: A library that holds government documents and materials.

Synonyms

• Bank: A common term for a depository financial institution.
• Credit Union: A type of depository financial institution that serves members and often offers lower fees and better rates.
• Savings and Loan Association: Another type of institution that accepts deposits and makes loans, especially for homes.

Idioms and Phrasal Verbs

While there aren't specific idioms or phrasal verbs directly related to "depository financial institution," you might hear phrases like: - "Put your money where your mouth is": This means to back up your words with actions, often financially. - "Cash in": To exchange something (like a check) for money.

Summary

A depository financial institution is an important part of our financial system, allowing us to keep our money safe and borrow when we need to.

Academic

Noun

1. a financial institution that accepts deposits and channels the money into lending activities
   • he cashed a check at the bank
   • that bank holds the mortgage on my home

Synonyms

• bank
• banking concern
• banking company