How Do the Primary Risks of Credit Unions Differ from Banks

question 56

Essay

How do the primary risks of credit unions differ from banks? From savings institutions (SIs)? From finance companies?

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Definitions:

Interest-Rate Ceilings

Regulatory limits on the maximum interest rates that can be charged on loans, intended to protect consumers from excessive borrowing costs.

Ceiling Rates

The maximum interest rate that can be charged on a particular loan model or savings account, often regulated by law or government policy.

Deposits

Money placed into a bank account or financial institution for safekeeping, which can earn interest over time.

Money Market Mutual Funds

Investment funds that invest in short-term debt securities and aim to provide investors with liquidity and a modest rate of return.