Which of the Following Are Two Significant Differences Between Thrifts

question 17

Multiple Choice

Which of the following are two significant differences between thrifts and credit unions?

• A)Credit unions cater to wealthier depositors and are nonprofit; thrifts are for-profit and serve the working class.
• B)Thrifts are based on a common bond among depositors and cater to more middle class and wealthy savers.
• C)Credit unions are nonprofit and are owned by their members, or depositors, but thrifts are generally for-profit and have a wide variety of depositors.
• D)Thrifts are tax-exempt, but credit unions are not; credit unions have a wide variety of depositors.

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Definitions:

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and the lack of viable competition.

Long-run Equilibrium

A state in which all factors of production and market forces are in balance, with no external pressures prompting change.

P = MR

An equality indicating that a firm's price (P) is equal to its marginal revenue (MR), often associated with perfect competition and profit maximization strategies.