Which of the Following Is True About Credit Unions Versus

question 43

Multiple Choice

Which of the following is true about credit unions versus commercial banks and savings institutions?

• A)C redit unions are less able to quickly generate additional deposits.
• B)S avings institutions and commercial banks can borrow from the Central Liquidity Facility, but credit unions cannot.
• C)S avings institutions and commercial banks are less able to quickly generate additional deposits.
• D)Credit unions have more exposure to interest rate risk.

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Definitions:

Efficiency Variance

The difference between the actual amount of an input used and the amount that was expected to be used, measured in financial terms.

Variable Overhead

Costs that fluctuate with the level of production or business activity, such as utilities or raw materials.

Rate Variance

The difference between the expected standard cost and the actual cost incurred, calculated for direct labor rate, overhead rate, or material price.

Standard Direct Labor-Hours

The estimated hours required to produce a units based on standard efficiency and productivity levels.