Jerry Jones has a VISA card with the Very Big Interstate Bank.He notices that the interest rate charged on this card is 19.5% per annum.Jerry has been employed by the same company for fifteen years,and has excellent credit.The company has a Credit Union that will issue Jerry a VISA card with an interest rate of 14.6%.The Credit Union offered Jerry this reduced rate because

Question

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Credit unions operate as non-profit organizations and typically have lower operating costs than traditional banks. As a result, they are able to offer lower interest rates and fees to their members. Additionally, credit unions place a greater emphasis on member relationships and are more likely to offer favorable rates to long-standing members with good credit histories. Therefore, it is likely that the credit union is offering Jerry a reduced rate because of his positive credit history and longstanding employment with his company.

Jerry Jones Has a VISA Card with the Very Big