Question

Which savings institution has the benefit of being operated for depositors and providing profits in dividends?

A. Credit Union
B. Savings and loan
C. Commercial bank
D. Mutual savings bank

Answer 1

The institution that provides dividends to its depositors is a Credit Union, as they are member-owned, nonprofit financial organizations focused on serving their members.

Step-by-step explanation:

The answer to the question regarding which savings institution operates for depositors and provides profits in dividends is A. Credit Union. Credit unions are nonprofit financial institutions that are owned and operated by their members. Unlike banks and savings and loans, credit unions return profits to their members in the form of dividends. Members typically join a credit union based on a shared community, employment, or association. Credit unions accept deposits, offer loans mainly to their members, and are known for their member-focused services. They have been increasing in total assets as compared to banks and savings and loans.

Answer 2

Credit unions are typically nonprofit, Savings and loans are for profit, and initially operated for depositors, but over the past 30 years have made numerous loans to nondepositors.

Commercial banks are often privately owned, but my be listed corporately owned, and are not operated for depositors. They do not, to my knowledge, pay profits in dividends, but ownership interests may vary.

Mutual savings banks are the savings depositories that are owned by depositors and distribute profits/dividends among the depositors.