8/29 - banking pre-assessment knowledge check\nwhich of the following is true about banks and credit…

8/29 - banking pre-assessment knowledge check\nwhich of the following is true about banks and credit unions?\nbanks offer higher interest rates on savings accounts than credit unions\ncredit unions are insured by the fdic, while banks are not\nbanks are owned by their customers, while credit unions are owned by shareholders\nbanks are for-profit institutions, while credit unions are non-profit

8/29 - banking pre-assessment knowledge check\nwhich of the following is true about banks and credit unions?\nbanks offer higher interest rates on savings accounts than credit unions\ncredit unions are insured by the fdic, while banks are not\nbanks are owned by their customers, while credit unions are owned by shareholders\nbanks are for-profit institutions, while credit unions are non-profit

Answer

Brief Explanations:

  • Banks: They are for - profit institutions. Their main goal is to generate profits for their shareholders. They offer a wide range of financial services.
  • Credit Unions: These are non - profit organizations. They are owned by their members (customers). Since they are non - profit, they often aim to provide better rates (such as on savings accounts) and lower fees to their members compared to banks. Also, banks are insured by the FDIC (Federal Deposit Insurance Corporation) in the US, while credit unions are insured by the NCUA (National Credit Union Administration). And banks are owned by shareholders, while credit unions are owned by their customers (members).

Answer:

Banks are for - profit institutions, while credit unions are non - profit.