Credit Unions Differ from Savings Institutions in That They Use

question 20

Multiple Choice

Credit unions differ from savings institutions in that they use a ____ proportion of their funds for mortgages and are ____ institutions.

• A)smaller; non-profit
• B)larger; non-profit
• C)smaller; for-profit
• D)larger; for-profit

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Definitions:

Cash Sales Policy

A cash sales policy is a company's strategy to require payment for goods or services at the time of sale, which can improve cash flow and reduce credit risk.

Net 30 Credit Policy

A payment term that allows the buyer 30 days to pay the invoice in full from the invoice date.

Monthly Interest Rate

The percentage of interest charged or earned on a principal amount on a monthly basis.

Variable Cost

A cost that changes in proportion to changes in the level of output or activity.