Which financial institution primarily makes consumer loans and accepts savings deposits, often owned by a group of employees?

The correct choice is the credit union, which is a type of financial institution that is member-owned and typically established to serve specific communities or groups of individuals, often employees of a particular company or organization. Credit unions primarily provide consumer loans and accept savings deposits from their members.

They operate on a not-for-profit basis, meaning that they focus on serving their members rather than maximizing profits. This often results in lower loan rates and higher savings rates than those typically offered by commercial banks. Additionally, credit unions are governed by a board of directors elected from among the membership, further emphasizing their member-centric approach.

In contrast, commercial banks generally serve a broader audience and are profit-driven, focusing more on large-scale business transactions. Savings banks primarily focus on savings accounts and might not offer as comprehensive a range of consumer loans as credit unions do. Investment banks, on the other hand, specialize in services related to the financial markets, such as underwriting and advisory for mergers and acquisitions, and do not typically engage in consumer lending or accepting deposits in the same way as credit unions and other depository institutions.