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:

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period of time.

Issuing Company

A company that offers its securities for sale to the public or to private investors.

Indenture

A formal legal agreement, contract, or document, especially one outlining the terms of a bond or other financial debt instrument.

Debenture

A type of debt instrument that is not secured by physical assets or collateral.