What is the main reason that credit unions

Assignment Help Financial Management

Reference no: EM131514729

A credit union can usually offer lower interest rates on loans (APR) than commercial banks. What is the main reason that credit unions can offer lower interest rates than commercial banks?

A. They have higher investment in technology and fixed assets (buildings) than banks, which gives them greater tax deductions.

B. Credit unions have favorable tax treatment by the IRS

C. They are legally able to offer lower interest rates on CDs and savings accounts, which makes it easier to get loans.

D. Simple supply and demand – there are more credit unions than banks, so they have to charge lower interest rates to compete.

Reference no: EM131514729

Questions Cloud

Cash flows estimated for a projects npv : Which of the following component should be included in the cash flows estimated for a project's NPV?

Valuation of the land at acquisition cost until sale of land : Valuation of the land at acquisition cost until sale of the land.

Listed as an itemized expense on schedule : Which of the following cannot be listed as an itemized expense on Schedule A?

What is present value of the annuity : What is the present value of the following annuity?

What is the main reason that credit unions : What is the main reason that credit unions can offer lower interest rates than commercial banks?

Marginal tax bracket : Investment B offers an annual return of 6.85% but the returns are taxed. You are in the 15% marginal tax bracket.

Calculate payback period-the NPV and the IRR : McGilla Golf has decided to sell a new line of golf clubs. Calculate the payback period, the NPV, and the IRR.

Annual income taxes by the largest amount : Which option will reduce your annual income taxes by the largest amount?

What is amount to use as the annual sales : What is the amount to use as the annual sales figure when evaluating this project?

User Account

All Pages