Credit unions have several advantages over banks. These include
I. Credit unions are not taxed.
II. Credit unions are better diversified than banks.
III. Credit unions can collectively pool funds.
IV. Due to regulations, credit unions have better economies of scale and scope than banks.
V. Because of their ties to employers credit unions have better personnel expertise than banks.

Question

Quizplus · Accepted Answer

Credit unions are not taxed (I), and by pooling their funds, credit unions are able to offer better rates and terms than individuals could on their own (III). While credit unions may not necessarily be better diversified than banks (II), they are able to achieve better economies of scale and scope due to regulations (IV). Credit unions may have specialized expertise when it comes to serving specific groups of people such as employees of certain companies or members of certain organizations (V), but this does not necessarily mean that they have better personnel expertise overall compared to banks.

Credit Unions Have Several Advantages Over Banks