### How is a credit union primarily different from a bank? - [ ] It offers only traditional banking services. - [ ] It is owned by private shareholders. - [x] It is a member-run cooperative. - [ ] It is operated for profit. > **Explanation:** A credit union is a member-run cooperative that is democratically controlled by its members, unlike a bank which is usually owned by private shareholders and operated for profit. This member-run model promotes thrift and offers financial services to members at competitive rates. ### Who controls the operations of a credit union? - [ ] Private shareholders - [x] Its members - [ ] Government officials - [ ] External investors > **Explanation:** Credit unions are controlled by their members, who elect a board of directors. Each member gets one vote, regardless of how much money they have invested, ensuring a democratic operation. ### What are the typical goals of a credit union? - [ ] Maximizing profits for shareholders - [ ] Charging high-interest rates on loans - [x] Promoting thrift and providing financial services at competitive rates - [ ] Focusing on luxury financial products and services > **Explanation:** Credit unions seek to promote thrift and offer credit and other financial services to their members at competitive rates. This includes fostering community development and ensuring that members receive satisfactory services. ### Which of the following statements is true about membership and ownership in a credit union? - [x] Anyone holding an account owns part of the credit union. - [ ] Only external investors own parts of the credit union. - [ ] Membership is based on the amount invested. - [ ] Ownership doesn’t affect membership rights. > **Explanation:** Members of a credit union own a part of it by simply holding an account. Each member contributes to the democratic operation of the credit union by having an equal vote in the election of the board of directors. ### How are directors of a credit union chosen? - [ ] They are appointed by external investors. - [ ] They are chosen by the highest depositors. - [x] They are elected by the members. - [ ] They are elected by government officials. > **Explanation:** Directors of a credit union are chosen through an election where each member gets one vote, irrespective of their financial stake, ensuring democratic governance. ### Why do credit unions often receive higher customer satisfaction scores than banks? - [ ] They focus solely on luxury services. - [x] They are managed democratically by their members. - [ ] They operate primarily for profit. - [ ] They are regulated less strictly. > **Explanation:** Credit unions often receive higher customer satisfaction scores because they are managed democratically by their members, which aligns their operations more closely with member needs and promotes a cooperative and customer-friendly environment. ### What is the primary purpose of the financial services provided by credit unions? - [ ] To maximize profits for managers - [x] To serve the financial needs of their members - [ ] To expand market share aggressively - [ ] To invest heavily in speculative real estate > **Explanation:** The primary purpose of the financial services provided by credit unions is to serve the financial needs of their members at competitive rates, rather than merely maximizing profits. ### Who can vote in credit union board elections? - [ ] Only members with the largest accounts - [ ] Only external investors - [x] All members, with each having one vote - [ ] Only government-appointed officials > **Explanation:** All members of a credit union can vote in board elections, with each having one vote regardless of the amount they have deposited or invested, ensuring widespread member participation in decision-making.