Which of the Following Is Not an Advantage of Credit

question 11

Multiple Choice

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

• A) They can offer attractive rates to their member savers and borrowers because they are nonprofit and therefore are not taxed.
• B) Their noninterest expenses are relatively low, because their labor, office, 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 the above are advantages of credit unions.

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Definitions:

Forward Trade

A financial contract agreement to buy or sell assets at a specified future date and price, used primarily in commodity and currency markets.

Forward Exchange Rate

The agreed upon exchange rate for a currency pair to be traded at a future date, used in hedging and speculation.

Spot Exchange Rate

The current price for which one currency can be exchanged for another.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.