Question

How is a credit union different from a retail bank?

A. A credit union is a nondepository institution; a retail bank takes customer's deposits.
B. A credit union is a nonprofit entity; a retail bank is a for-profit entity.
C. A credit union and a retail bank refer to the same entity; there is no difference between them.
D. A retail bank is membership-only; a credit union deals with the general public.

Answer 1

B. A credit union is a nonprofit entity; a retail bank is a For-profit entity.

Answer 2

The correct answer is letter "B": A credit union is a nonprofit entity; a retail bank is a for-profit entity.

Step-by-step explanation:

The difference between a credit union and a bank is that the first one is a non-profit organization while the second is. Besides, credit unions usually have better customer service and lower fees but higher interest rates. On the other hand, banks have higher fees but lower interest rates.