ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They require membership and are owned by those members.
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They charge higher interest rates on loans and have more fees.
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They pay profits to their shareholders and can be used by anyone.
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Deposits are insured by $100, 000 by the NCUA.
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Detailed explanation-1: -YOU ARE PART OWNER. Credit unions are owned and controlled by the people, or members, who use their services. Your vote counts. A volunteer board of directors is elected by members to manage a credit union.
Detailed explanation-2: -Credit unions are financial institutions, like banks, except the members own the credit union. They are nonprofit entities that aim to serve their members rather than seeking to earn a profit. Credit unions often offer better savings rates, lower loan rates and reduced fees because of this.
Detailed explanation-3: -Being a credit union member means you share your financial institution’s ownership, vision and profits. It gives you the opportunity to shape your personal banking experience, as well as the impact your banking has on your local community. Membership has meaning and value.