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Questions and Answers
What is a key difference between credit unions and banks/savings associations?
What is a key difference between credit unions and banks/savings associations?
- Credit unions are only allowed to serve members. (correct)
- Credit unions offer a wider range of services.
- Credit unions can serve the general public.
- Banks and savings associations are not regulated.
Which regulatory body oversees federally chartered credit unions in the US?
Which regulatory body oversees federally chartered credit unions in the US?
- Federal Reserve
- World Council of Credit Unions (WOCCU)
- Financial Services Commission (FSC)
- National Credit Union Administration (NCUA) (correct)
What does the PEARLS monitoring system help with in credit unions?
What does the PEARLS monitoring system help with in credit unions?
- Assessing the safety of depositors' funds
- Managing mortgage backed securities
- Monitoring foreign exchange risk
- Analyzing the financial condition comprehensively (correct)
What aspect of a credit union's operations does 'Asset Quality' in PEARLS focus on?
What aspect of a credit union's operations does 'Asset Quality' in PEARLS focus on?
Which country's credit unions are regulated by the Financial Services Commission (FSC)?
Which country's credit unions are regulated by the Financial Services Commission (FSC)?
What is the primary restriction on credit unions regarding serving the general public?
What is the primary restriction on credit unions regarding serving the general public?
What type of assets are reserves with the central bank and government securities?
What type of assets are reserves with the central bank and government securities?
Which category represents loans to enterprises on the balance sheet?
Which category represents loans to enterprises on the balance sheet?
What does the reserve for Loan Losses indicate about an institution's risk exposure?
What does the reserve for Loan Losses indicate about an institution's risk exposure?
Where are large time deposits and other deposits typically classified on the balance sheet?
Where are large time deposits and other deposits typically classified on the balance sheet?
Foreign assets and foreign liabilities are often used to mitigate which type of risk?
Foreign assets and foreign liabilities are often used to mitigate which type of risk?
What does a high level of borrowed funds compared to equity capital suggest about an institution's leverage?
What does a high level of borrowed funds compared to equity capital suggest about an institution's leverage?
What is a key characteristic used to evaluate loan quality?
What is a key characteristic used to evaluate loan quality?
Why do Savings Institutions enjoy concessionary rates of borrowing from the central bank?
Why do Savings Institutions enjoy concessionary rates of borrowing from the central bank?
What is a key characteristic of Credit Unions (CUs)?
What is a key characteristic of Credit Unions (CUs)?
Which term refers to the ability of an institution to withstand stresses such as changes in interest rates?
Which term refers to the ability of an institution to withstand stresses such as changes in interest rates?
Why were Savings Institutions created?
Why were Savings Institutions created?
What sets Credit Unions apart from commercial banks and savings associations?
What sets Credit Unions apart from commercial banks and savings associations?
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