Which institution is a cooperative depository owned by its members and typically lends to members at low rates?

• A. Credit Unions
• B. Pension Funds
• C. Savings Institutions
• D. Venture Capital Firms

Answer: (A)

Credit unions are member-owned cooperatives that serve as depository institutions. Because they operate on a not-for-profit basis, earnings are returned to members through lower loan rates, higher savings yields, and lower fees, so they typically lend to members at low rates. Pension funds are retirement-focused entities, not everyday depository institutions that lend to members. Savings institutions may be mutual or stock-owned and aren’t inherently member-owned cooperatives. Venture capital firms are investors, not depository institutions, and they don’t provide low-rate consumer loans.