Question

How is a credit union different from a retail bank?

A. Acredit union is a nondepository institution; a retail bank takes

customer's deposits.


B. A credit union and a retail bank are the same thing; there is no

difference between them.


C. A retail bank is "membership only", a credit union deals with the

general public


D. A credit union is a nonprofit entity; a commercial bank is a for-

profit entity

Answer 1

A. A credit union is a non-depository institution; a retail bank takes customer deposits.

Answer 2

The answer is (D.) A credit union is a nonprofit entity; a commercial bank is a for-profit entity.

Explanation:

While Credit unions are not-for-profit organizations that exist to serve their members Retail banks are for-profit organizations that exist to serve the general public. Just like retail banks, credit unions accept deposits, make loans and provide a wide array of other financial services, but mainly from registered members.. But as member-owned and cooperative institutions, credit unions provide a safe haven to members only to save and borrow at reasonable rates.