### What is the main purpose of a Building and Loan Association? - [x] To facilitate the construction or purchase of real estate for its members - [ ] To offer high-interest loans to individuals - [ ] To invest solely in commercial properties - [ ] To provide insurance services > **Explanation:** A Building and Loan Association aims to support its members by providing financing for constructing or purchasing real estate. These associations help raise funds to make building projects or real estate purchases a reality for their members. ### Who typically holds decision-making power in a Building and Loan Association? - [ ] The association's President - [ ] Individual directors - [x] Both depositors and borrowers - [ ] External financial advisors > **Explanation:** Building and Loan Associations are usually held mutually, meaning that both depositors and borrowers have mutual decision-making power concerning how the association's funds are directed. ### Who runs the day-to-day operations and decisions of a Building and Loan Association? - [ ] Only the association's president - [ ] External auditors - [x] An appointed board of directors - [ ] Government officials > **Explanation:** Members usually appoint a board of directors to handle the day-to-day operations and decisions regarding how funds are raised and dispersed within the Building and Loan Association. ### How are members of a Building and Loan Association generally involved in its organization? - [ ] Members have no involvement in organizational decisions - [ ] Members act as passive investors - [x] Members actively participate in mutual decision-making - [ ] Members only provide initial capital > **Explanation:** Members of a Building and Loan Association are typically involved in mutual decision-making concerning the management and direction of the association's funds and activities. ### What is one common structure in how Building and Loan Associations are maintained? - [ ] They are exclusively organized by banks - [ ] They operate as government entities - [ ] They are structured as private, for-profit corporations - [x] They can be organized in a variety of ways > **Explanation:** Building and Loan Associations can be organized and maintained in several different ways, providing flexibility in their structure and operations. ### In a Building and Loan Association, what is one way funds are typically dispersed? - [ ] Only as high-risk investments - [ ] For depositors' personal expenses - [x] For construction or real estate purchases by members - [ ] As donations to charitable organizations > **Explanation:** Funds in a Building and Loan Association are typically dispersed to support construction projects or real estate purchases by association members, aligning with the association's primary goal. ### What role do members' deposits play in a Building and Loan Association? - [ ] Deposits earn interest but have no further role - [ ] Deposits are used for speculative trading - [x] Deposits are part of the mutual pool of funds used for real estate projects - [ ] Deposits are utilized to buy government bonds only > **Explanation:** Deposits from members of a Building and Loan Association form part of the mutual pool of funds, which is used to finance construction projects or real estate purchases for the members. ### Can a Building and Loan Association provide services other than funding for real estate? - [ ] Yes, but this is rare and highly regulated - [x] Yes, depending on how the association is organized - [ ] No, they can only fund real estate - [ ] No, they only provide savings accounts > **Explanation:** Depending on their organizational structure, Building and Loan Associations can offer various services in addition to funding real estate projects, providing flexibility to meet the needs of their members. ### Who typically appoints the board of directors in a Building and Loan Association? - [ ] The government - [ ] External investors - [x] The members of the association - [ ] Independent financial consultants > **Explanation:** The members of a Building and Loan Association usually appoint the board of directors, ensuring that those who directly benefit from or contribute to the association have a say in its governance. ### What type of membership structure is most common in a Building and Loan Association? - [ ] Structured hierarchically with top-down decisions - [x] Mutually-held with equal decision-making rights - [ ] Privately owned with no member involvement - [ ] Exclusively shareholder-based > **Explanation:** Building and Loan Associations are most commonly mutually-held, wherein depositors and borrowers share equal decision-making rights to guide the association's activities and direction.