Which description best defines a Credit Union?

Which description best defines a Credit Union?

• A. A government entity
• B. A member-owned financial cooperative
• C. A private bank
• D. An insurance company

Answer: (B)

Credit unions are member-owned financial cooperatives that operate on a not-for-profit basis to serve their members. They’re owned by the people who use them, and each member has a vote, so members help decide how the institution is run. Because earnings go back to members in the form of better rates and lower fees, credit unions often offer competitive savings and loan products. They are not government entities, for-profit private banks, or insurance companies, which is why those descriptions don’t fit.

Credit unions are member-owned financial cooperatives that operate on a not-for-profit basis to serve their members. They’re owned by the people who use them, and each member has a vote, so members help decide how the institution is run. Because earnings go back to members in the form of better rates and lower fees, credit unions often offer competitive savings and loan products. They are not government entities, for-profit private banks, or insurance companies, which is why those descriptions don’t fit.