5
QuizLong Text

Private Financial Institutions

Question 5 • FL-2106010-M/J Civics B

Explain how credit unions differ from banks.

Answer

Answer:

Credit unions are member-owned, not-for-profit cooperatives, usually serving people who share a particular community, employer, or association. Banks are generally for-profit institutions owned by shareholders and serve the public more broadly. Both accept deposits and make loans, but credit union earnings benefit their members, often through lower fees or more favorable rates.

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