Certified Financial Management Specialist Practice Exam

What do credit unions primarily offer to their members?

1. Investment services

2. Loan guarantees

3. Financial services and products

4. Insurance policies

The correct answer is: Financial services and products

Credit unions primarily offer financial services and products to their members, which distinguishes them from other types of financial institutions like banks. These services commonly include savings accounts, checking accounts, personal loans, auto loans, mortgages, credit cards, and other financial tools that support individual financial management. The focus of a credit union is on providing members with favorable terms, such as lower interest rates on loans and higher interest rates on savings, based on the cooperative nature of the organization. Credit unions are member-owned and operate to benefit their members rather than to generate profit, fostering a community-centric approach to financial services. While investment services, loan guarantees, and insurance policies may be offered by some credit unions, they are not the primary offerings; the cornerstone of a credit union's services lies in their comprehensive financial products designed to meet everyday financial needs and strengthen members' financial well-being.