15
QuizMultiple Choice

Personal Finance — Test

Question 15 • Personal Finance and 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 manage a person’s money, while credit unions focus on providing loans.
C
Retail banks only have small local branches, while credit unions are nationwide.
D
Retail banks operate in order to earn profit, while credit unions are nonprofit.

Explanation

A major difference is their purpose and ownership. Retail banks operate to earn profits for their owners or shareholders, while credit unions are member-owned and generally operate as nonprofit financial cooperatives. Both can offer services such as accounts, money management, and loans, so the other choices describe differences that are not generally true.

AI-written and checked against the verified answer.

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