The type of institution for which all are both owned by its depositors and pays "dividends" to its depositors is the
A) credit union.
B) savings and loans.
C) life insurance companies.
D) commercial bank.

Question

Quizplus · Accepted Answer

Credit unions are owned by their depositors, who are also members of the credit union. As a not-for-profit financial institution, credit unions pay "dividends" (which are essentially interest payments) to their members instead of paying out profits to shareholders. Savings and loans, commercial banks, and life insurance companies are not necessarily owned by their depositors, and may not pay dividends to depositors.

The Type of Institution for Which All Are Both Owned