by Mark S. Brantley, Esq. – CUEvangelist
Credit Union 101: Quiz
1) What is a credit union?
Answer:
Credit Unions are not-for-profit, member-owned financial institutions that promote thrift and provide community support.
2) What is the credit union philosophy?
Answer:
The credit union philosophy is “People Helping People.”
3) What is the credit union industry motto?
Answer:
The CU motto is “Not for Profit, Not for Charity, But for Service.”
4) What is the name of the federal agency
that insures members’ deposits?
Answer:
National Credit Union Administration (NCUA)
5) Why are credit unions not for profit?
Answer:
Credit unions are not for profit because they primarily focus on providing excellent service to members, support community activities, and return earnings to members via lower interest loans and higher interest-bearing savings.
6) What is a supervisory committee?
Answer:
A Supervisory Committee is a group of individuals elected by the members or appointed by the board of directors whose primary responsibilities are to audit the credit union’s finances and operations, to ensure business soundness, and compliance with applicable laws and regulations.
7) What is the role of the board of directors?
Answer:
The board of directors are individuals elected by the members and are responsible for the overall general management of the credit union that includes establishing policies.
8) How does someone join a credit union?
Answer:
Individuals can join credit unions based on their respective charters usually based on the common bond of an employer, or community area, or
group association.
9) Why were credit unions formed?
Answer:
Credit unions were formed to provide access to credit to people of modest means (e.g, farmers, factory workers, etc.) as well as combat predatory lending.
10) Why are credit unions safer than banks?
Answer:
Credit unions practice safe banking by holding more capital reserves and taking on less risky investments.
70% or 7 out of 10 is a Passing Score
< 70% employees should receive a credit union orientation
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