Question

Sabrina is trying to decide between opening an account at a local commercial bank or at her college credit union. What TRUE statement about these two institutions will BEST influence her decision?
Group of answer choices

Since commercial banks are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

Since credit unions are for-profit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

Since commercial banks are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

Since credit unions are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

Answer 1

Since credit unions are nonprofit, they can often keep their costs down, which translates into higher interest rates for savings and lower rates on loans.

Explanation: Credit unions are member-owned, not-for-profit institutions that generally return earnings to members via better deposit rates, lower loan rates, and fewer fees compared with for-profit commercial banks.