Credit Unions and Building Societies are best described as:

Credit Unions and Building Societies are best described as:

• A. Not-for-profit member-owned and operated democratic financial co-operatives
• B. For-profit multinational banks
• C. Government-owned financial institutions
• D. Private equity funds

Answer: (A)

Ownership and governance shape what credit unions and building societies are. They are not-for-profit, member-owned organizations that operate as democratic financial co-operatives. Members elect representatives to run the institution, and each member typically has one vote, regardless of how much money they have deposited. Profits aren’t paid to external shareholders; instead they’re reinvested in the organization or returned to members through better rates, lower fees, or improved services. This cooperative model sets them apart from profit-driven banks, government-owned institutions, or private equity funds.

Ownership and governance shape what credit unions and building societies are. They are not-for-profit, member-owned organizations that operate as democratic financial co-operatives. Members elect representatives to run the institution, and each member typically has one vote, regardless of how much money they have deposited. Profits aren’t paid to external shareholders; instead they’re reinvested in the organization or returned to members through better rates, lower fees, or improved services. This cooperative model sets them apart from profit-driven banks, government-owned institutions, or private equity funds.