How Do Commercial Banks Differ from Credit Unions

question 23

Multiple Choice

How do commercial banks differ from credit unions?

• A) Commercial banks serve business and personal customers; credit unions are designed to serve consumers, not businesses.
• B) Commercial banks are typically owned by investors; credit unions are controlled by a founding corporation.
• C) Commercial banks provide long-term loans; credit unions offer chequing accounts.
• D) Deposits at a commercial bank are insured by the FDIC; credit union accounts are uninsured.

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Definitions:

Marginal Rate

The rate of change in cost or benefit resulting from a particular increase in volume or activity.

Consumption

The use of goods and services by households, which is a primary component in calculating a country's gross domestic product (GDP).

Marginal Utilities

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of various goods and services that an individual consumes over a given period.