Which of the following statements is true about credit unions?

Which of the following statements is true about credit unions?

• A. They are for-profit and owned by shareholders
• B. They are typically less accessible than commercial banks
• C. They have higher interest rates and lower fees
• D. They are owned by their members and not-for-profit

Answer: (D)

The statement regarding credit unions being owned by their members and being not-for-profit is accurate. Credit unions operate as member-driven financial cooperatives, meaning their primary purpose is to serve their members rather than to generate profit like traditional banks. Members of a credit union are essentially co-owners, which allows them to have a say in how the institution is run, including voting on important matters and electing the board of directors. Being not-for-profit enables credit unions to often provide better interest rates on loans and savings, as well as lower fees for services compared to for-profit banks. This member-focused approach helps credit unions to prioritize the financial well-being of their members over profit margins.

The statement regarding credit unions being owned by their members and being not-for-profit is accurate. Credit unions operate as member-driven financial cooperatives, meaning their primary purpose is to serve their members rather than to generate profit like traditional banks. Members of a credit union are essentially co-owners, which allows them to have a say in how the institution is run, including voting on important matters and electing the board of directors.

Being not-for-profit enables credit unions to often provide better interest rates on loans and savings, as well as lower fees for services compared to for-profit banks. This member-focused approach helps credit unions to prioritize the financial well-being of their members over profit margins.