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QuizMultiple Choice

Private Financial Institutions

Question 1 • FL-2106010-M/J Civics B

How are credit unions and savings and loans different from commercial banks and finance companies?

Answer
A
Credit unions and savings and loans are limited to making loans.
B
Credit unions and savings and loans are protected by the FDIC.
C
Credit unions and savings and loans are not usually owned by investors.
D
Credit unions and savings and loans provide services, such as checking accounts.

Explanation

Credit unions are owned by their members, and savings and loans are typically owned by depositors or organized as mutual institutions rather than owned by outside investors. This differs from commercial banks and finance companies, which are generally investor-owned. The other choices do not identify the key ownership difference: these institutions offer more than loans, and FDIC coverage does not apply to every credit union.

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