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Quiz 16: Thrift Institutions and Finance Companies
50
Question 87
Short Answer
50. Please list the major advantages and challenges that credit unions enjoy over banks.
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Explain how unexpected increases in interest rates hurt savings institutions. How would they alter their maturity GAP if they expected interest rates to rise?
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The issue of defining the common bond among members of credit unions has been in the courts and Congress. Why is this issue important to competing bankers? To credit unions? Does it have any relationship to the risks faced by credit unions?
Q 86
Explain how finance companies and depository institutions might differ in managing credit risk.
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