Which of the following is NOT an advantage of credit unions?
A)They can offer attractive rates to their members because they are nonprofit and therefore are not taxed.
B)Their noninterest expenses are relatively low, because their offices and furniture are often donated or provided at a very low cost through the affiliation of their members.
C)Their large membership allows them to effectively diversify geographically.
D)All of these are advantages of credit unions.

Question

Quizplus · Accepted Answer

Credit unions typically serve a specific geographic area or community, which limits their ability to diversify geographically. Their membership is often based on a common bond, such as employment, location, or association, rather than aiming for large, widespread membership that would allow for significant geographic diversification.

Which of the Following Is NOT an Advantage of Credit