Question

Cisco Corporation is considering opening a financial institution that accepts savings deposits from only its employees and makes loans to only its employees. The best description of this financial institution is that it is a:__________

Answer 1

Answer: Credit Union

Explanation: A credit union is a type of cooperative society formed by a group of people with the intention of helping one another in form of loans.

Regular contributions are made by members on a regular basis where interest are calculated and shared yearly.

Every depositor is a member by right and he/she is also entitled to get a loan whenever he/she needs it.