Banks and Credit Unions Quiz

What is the primary purpose of a bank?

• To provide insurance services

• To offer financial services such as savings, loans, and checking accounts

• To sell consumer goods

• To regulate the stock market

Which term best describes a credit union?

• A government agency

• A member-owned financial cooperative

• A private investment firm

• A retail store

Who can become a member of a credit union?

• Anyone who pays a fee

• Individuals who meet specific membership requirements

• Only government employees

• Only business owners

Which financial institution is typically regulated by the Office of the Comptroller of the Currency (OCC)?

• Credit unions

• Banks

• Insurance companies

• Investment firms

What is a common service offered by both banks and credit unions?

• Selling electronics

• Providing checking accounts

• Offering travel packages

• Managing sports teams

Which institution is more likely to require you to belong to a specific group or community to open an account?

• Bank

• Credit union

• Investment firm

• Insurance company

Which of the following is typically true about interest rates at credit unions compared to banks?

• Credit unions usually offer higher interest rates on loans

• Credit unions usually offer lower interest rates on loans

• Banks usually offer lower interest rates on savings accounts

• Credit unions do not offer interest rates

What is one key difference in ownership between banks and credit unions?

• Banks are owned by their customers

• Credit unions are owned by their members

• Banks are owned by the government

• Credit unions are owned by shareholders

Which regulatory body oversees most credit unions in the United States?

• Federal Reserve

• National Credit Union Administration (NCUA)

• Securities and Exchange Commission (SEC)

• Federal Deposit Insurance Corporation (FDIC)

Which of the following best describes the membership requirement for credit unions?

• No requirements; anyone can join

• Must meet specific eligibility criteria, such as employment or community affiliation

• Must be a government employee

• Must own a business