Question

Cisco 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:

A) credit union.
B) commercial bank.
C) savings and loan association.
D) savings bank.
E) federal government chartered credit bank.

Answer 1

OPTION (A) is correct

Step-by-step explanation:

We can see in the scenario that the financial institution save the money of only the member of its institution and also give loan to only the member of its institution, this is a best example of financial institution which is basically known as credit union.

Because credit union is a type of financial institution in which money which is been accepted by the financial institution is only the money of its members, and the money which is given as a loan to the other member is the money which is been accepted by the financial institution.

So, here we can easily say that OPTION (A) is true.