ECONOMICS (CBSE/UGC NET)

ECONOMICS

INSURANCE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?

A	Commercial Bank
B	Credit Union
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -A savings and loan association (S&L) is a financial institution typically owned and overseen by its customers or shareholders.

Detailed explanation-2: -National Bank National banks are required to be members of the Federal Reserve System and belong to the Federal Deposit Insurance Corporation.

Detailed explanation-3: -A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.

Detailed explanation-4: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.

There is 1 question to complete.