Comparing credit unions with commercial banks and savings institutions
A) credit unions are less able to quickly generate additional deposits.
B) savings institutions and commercial banks can borrow from the Central Liquidity Facility, but credit unions cannot.
C) savings institutions and commercial banks are less able to quickly generate additional deposits.
D) credit unions have less exposure to liquidity risk.

Question

Quizplus · Accepted Answer

Credit unions are typically smaller and have a more limited customer base compared to commercial banks and savings institutions, making it harder for them to quickly generate additional deposits.

Comparing Credit Unions with Commercial Banks and Savings Institutions