Question

what is a major difference between retail banks and credit unions? retail banks only serve businesses, while credit unions only serve individuals. retail banks operate in order to earn profit, while credit unions are nonprofit. retail banks only have small local branches, while credit unions are nationwide. retail banks manage a person’s money, while credit unions focus on providing loans.

Explanation:

Retail banks are for-profit financial institutions that earn revenue from fees and interest on loans. Credit unions are member-owned, nonprofit organizations that return profits to members in the form of lower fees and better rates. The other options are incorrect: retail banks serve both individuals and businesses, both can have local or nationwide reach, and both offer money management and loan services.

Answer:

Retail banks operate in order to earn profit, while credit unions are nonprofit.