ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One has more money
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Who owns each of them
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Their location and size
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None of the above
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Detailed explanation-1: -What makes banks and credit unions different from each other is their profit status. Banks are for-profit, meaning they are either privately owned or publicly traded, while credit unions are nonprofit institutions.
Detailed explanation-2: -Credit unions are owned and governed by its members. Any person who becomes a member can actively participate in the affairs of the organization by direct voting. For example, all members participate in the election of the board of directors.
Detailed explanation-3: -Banks and credit unions both offer a number of financial products, including savings accounts and certificates of deposit (CDs). The main difference between the two is that banks are typically for-profit institutions while credit unions are not-for-profit and distribute their profits among its members.
Detailed explanation-4: -Banks are a for-profit business. Banks’ depositors are called “customers". Customers have no ownership interest in the institution. Banks are owned by investors who may or may not be depositors.
Detailed explanation-5: -Differences Between Credit Unions & Banks Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees.