Which of the Following Is NOT an Advantage of Credit

question 19

Multiple Choice

Which of the following is NOT an advantage of credit unions?

• A)They can offer attractive rates to their members because they are nonprofit and therefore are not taxed.
• B)Their noninterest expenses are relatively low, because their offices and furniture are often donated or provided at a very low cost through the affiliation of their members.
• C)Their large membership allows them to effectively diversify geographically.
• D)All of these are advantages of credit unions.

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Definitions:

Installments

Payments divided into smaller, manageable parts over a set period, allowing for the purchase of goods or repayment of loans.

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Discretion

The quality of behaving or speaking in such a way as to avoid causing offense or revealing confidential information.

Certified Check

A payer’s check written and signed by the payer, which is stamped “certified” by the bank. The bank has already drawn money from the payer’s account to guarantee that the check will be paid.