Commercial banks differ from credit unions in the following way:
A. commercial banks cannot make auto loans to individuals, just to businesses while credit unions can do both.
B. credit unions focus on consumer loans while commercial banks primarily make loans to businesses.
C. credit unions make loans and accept deposits while commercial banks just make loans.
D. credit unions do not have to hold reserves while commercial banks do.
Answer: B
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If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States
A) rises. B) falls. C) remains constant. D) either remains constant or rises, depending on how whether the supply of the good stays the same or increases. E) There is not enough information to answer the question because we need to know if the market price in the United States had been above or below the world market price before trade began.
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The U.S. beer industry is characterized by market power for only a few firms, with the largest firm enjoying a 50% market share. One reason for this is economies of scale. Economies of scale means that:
a. as beer production increases, costs increase significantly. b. patents have allowed beer producers to have low costs of production. c. as beer production increases, the average total cost of production falls. d. if the industry were made perfectly competitive, the costs of production would fall.