14
QuizMultiple Choice

Banking: How to Manage Your Money

Question 14 • * HSA 26-27 Economics

What is a major difference between retail banks and credit unions?

Answer
A
Retail banks only serve businesses, while credit unions only serve individuals.
B
Retail banks operate in order to earn profit, while credit unions are nonprofit.
C
Retail banks only have small local branches, while credit unions are nationwide.
D
Retail banks manage a person’s money, while credit unions focus on providing loans.

Explanation

Retail banks are generally for-profit businesses owned by shareholders. Credit unions are member-owned, nonprofit financial cooperatives that return benefits to members through services and rates. So the major difference is that banks operate to earn profit, while credit unions are nonprofit.

AI-written and checked against the verified answer.

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