Question

What distinguishes a credit union from a commercial bank?

Q: Answer-What distinguishes a credit union from a commercial bank?

Credit unions are financial cooperatives that are owned and operated by their members, who are typically individuals with a common bond such as belonging to the same community or workplace. In contrast, commercial banks are typically owned by shareholders and operate for-profit. Credit unions often offer similar services as commercial banks, such as savings accounts, loans, and other financial products, but their ownership structure sets them apart.

A Credit unions are owned by their members, while commercial banks are owned by shareholders.

B Credit unions focus on serving corporate clients, while commercial banks primarily serve individual customers.

C Credit unions are regulated by the central bank, while commercial banks are regulated by government agencies.

D Credit unions provide investment banking services, while commercial banks focus on retail banking.

E Credit unions have higher interest rates on loans compared to commercial banks.

Practice Next

More Banking System in India Questions

Which of the following private sector bank has launched two new products – loan against deposits and dollar bonds – for non-resident Indians at its GIFT Ci...
Management is considered both as science and art, because?
What is the interest rate earned on SGBs?
Using the following data, calculate the Economic Order Quantity (EOQ) for the consumption of materials: Annual consumption: 10,000 kg Cost per order: ₹50...
In which of the following market does devaluation of currency happen?
Which of the following is not one of the four themes mentioned in the 15th Finance Commission w.r.t grant-in aid-to states?
Champion Ltd. define following data for calculating Current Ratio: Current Assets Rs.20,00,000 , Inventories Rs.10,00,000 , Working Capital Rs.12, 00,000.
What does CGRA expand to?
The Indian government recently reduced the customs duty on gold. What is the new customs duty rate?
Which of the following is the fiscal deficit for the current year minus interest payments on previous borrowings?

Hey! Ask a query

🎓

Think You're Ready for RBI Grade B?

RBI Grade B 2026 Phase 1 Memory Based Paper

200 Questions with Detailed Solutions
Section-wise Coverage (GA, English, Quant & Reasoning)

Download Now 100% Free PDF

What distinguishes a credit union from a commercial bank?

Detailed Solution

More Banking System in India Questions

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper