During this worldwide financial recession, people are looking for ways to save money wherever possible. Credit unions offer a number of financial benefits to their members. Take this quiz to see if you know how credit unions operate and how they are different from banks.
What is a primary source of income for banks?
interest on loans
sale of stocks
What makes a credit union different from a bank?
They are not-for-profit institutions.
They are not allowed to make loans over $250,000.
They must issue credit cards to all of their account holders.
What happens to the profits made by a credit union?
They are reinvested in the institution or paid to members.
They are split by the credit union's board of directors.
Nothing; there are no profits.
How does the not-for-profit status of credit unions benefit their members?
Credit unions can charge lower interest rates on loans than banks do.
Members pay no taxes on dividends.
Members are not allowed to invest in commercial banks.
For which people were credit unions first established?
people connected via a common organization or institution
Approximately how many members do credit unions have worldwide?
What is the primary complaint about credit unions from the banking industry ?
Where and when were the first credit unions formed?
Who were the first German credit unions designed to help?
poor city residents
Where was the first credit union opened in the United States?
Under which U.S. president was the Federal Credit Union Act passed?
Franklin D. Roosevelt
Harry S. Truman
What credit union organization was established in 1934?
Credit Union National Association (CUNA)
National Credit Union Share Insurance Fund (NCUSIF)
World Council of Credit Unions (WCCU)
Which of the following years saw the highest number of credit unions in the U.S.?
What did the U.S. Supreme Court determine about credit unions in 1998?
that some had unfairly signed up members without any common bond
that they were being forced out of business by big banks
that they did not sufficiently disclose who their board members were
What do natural-person credit unions gain from their affiliation with corporate credit unions?
What is the legal status of a corporate credit union?
What institution provides liquidity to corporate credit unions in the United States?
National Credit Union Association
Federal Reserve Bank
What does the Federal Credit Union Act require for someone to qualify for membership in a credit union?
a common bond with other members of the credit union
an initial minimum deposit of $500
a commitment to remain a member for at least a year
What is the average annual interest rate charged on a credit union credit card?