The main difference between a deposit broker and a deposit agent is that the deposit broker can:

• A. Legally only arrange deposits for consumers with one bank.
• B. Arrange deposits for consumers with a number of banks.
• C. Also act as an insurance intermediary, which a deposit agent can't.
• D. Hold client deposits.

Answer: (B)

The main idea here is the range of banks the intermediary can work with. A deposit broker operates across multiple banks, arranging or placing client deposits with a number of institutions. This lets clients shop for the best rates and terms rather than being limited to one bank. A deposit agent, by contrast, is typically tied to a single bank (or a limited set), so they can’t arrange deposits across a wide network.

That broader access is what makes the broker the better choice in this context: it enables the client to compare options across several banks. Brokers don’t usually hold the client’s funds themselves; the deposits are placed with the banks.