ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks have Checking accounts and Credit Unions have Savings Accounts
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Banks are for profit. Credit Unions are Non-profit.
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Banks can give loans and Credit Unions cannot
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Credit Unions allow everyone to join and Banks are selective
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Detailed explanation-1: -Credit unions are nonprofit financial institutions. Customers, referred to as “members, ” own and control them. Credit unions’ principal purpose is to improve their members’ financial well-being and return earnings to them. Shareholders own and run banks, which are for-profit businesses.
Detailed explanation-2: -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-3: -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.
Detailed explanation-4: -Credit Union. Banks and credit unions both offer financial products such as checking accounts, savings accounts, CDs and loans. However, credit unions tend to offer better interest rates than banks, while banks are likely to have a wider range of products and more convenient services.
Detailed explanation-5: -Key Takeaways. Building societies provide banking and other financial services to their members. They are similar to credit unions and savings and loan institutions, but their members are typically those in construction trades, real estate, or co-op housing.