Which of the following is a difference between commercial banks and credit unions?
A)Commercial banks issue loans while credit unions do not.
B)You must have a credit card to be part of a credit union.
C)Commercial banks have stockholders and credit unions do not.
D)Commercial banks are for people with a common bond.

Question

Quizplus · Accepted Answer

Commercial banks have stockholders who own the bank and are entitled to receive profits in the form of dividends. In contrast, credit unions are nonprofit organizations owned by their members, who are also their customers. There are no stockholders in a credit union, and profits are returned to members in the form of lower fees, higher interest rates or other benefits.

D is not a difference between commercial banks and credit unions, as there are commercial banks that serve specific communities or industries, just like credit unions. A, B are incorrect as they are not true statements about commercial banks or credit unions.

Which of the Following Is a Difference Between Commercial Banks