Credit Union Philosophy Assessment
What is a credit union?
A financial cooperative, controlled by its members for the purpose of providing financial services.
A small bank, organized and controlled by stockholders for the purpose of making a profit.
A collective bargaining unit organized by financial services staff.
How are credit unions structured?
Democratically. Every member has an equal say regarding the credit union‚ goals, and functions. They exercise that right by voting at the credit union’s annual meeting, and by running for the Board.
Hierarchically. A small number of stockholders vote on the goals and functions of the organization.
Dictatorially. The CEO of the credit union makes all decisions concerning operations.
Which of the following WEREN’T one of the fundamental cooperative principles established by Friedrich Raiffeisen?
From each according to his ability, to each according to his need.
Loans would be made for prudent and productive purposes.
Democratic control, with each member having a say in how the credit union operates.
Which of the following was NOT a name of a trade association representing credit unions in the Northwest?
The Filene League
The Oregon Mutual Credit League
The League of Credit Union Voters
What is the name of the federal regulatory agency overseeing the safety and soundness of credit unions?
National Credit Union Administration (NCUA)
Federal Deposit Insurance Corporation (FDIC)
Credit Union National Association (CUNA)
Where was the first credit union in North America formed?
St. Augustine, Florida
Which of the following is NOT one of the International Cooperative Operating Principles?
Service to members.
Where do the earnings of a credit union go?
Earnings are returned to the members in the form of dividends, lower loan rates, and increased services.
Earnings are returned to a few stockholders.
Earnings go to the Board of Directors.
What is the purpose of a credit union?
How is the Board of Directors elected at a credit union?
Directors are elected by the membership.
Directors are elected by shareholders.
Directors are chosen by the manager of the credit union.
Why should members do business with your credit union?
Our rates are better than the banks.
We are friendly.
This is their credit union. It is owned and controlled by the membership. They can run for the Board of Directors of the credit union. And they have the opportunity to vote at the annual meeting.
Which of the following organizations AREN’T part of the Credit Union Movement?
Northwest Credit Union Association
Federal Financial Institutions Examination Council
Which organization provides share insurance coverage protecting member accounts up to $250,000?
The NCUSIF (National Credit Union Share Insurance Fund), administered by the NCUA.
The FDIC (Federal Deposit Insurance Corporation), administered by the Department of Treasury.
The DFCS (Division of Finance & Corporate Securities), administered by the Department of Consumer & Business Services.
Why don’t credit unions need to comply with the federal Community Reinvestment Act?
Because Congress accidentally left them out of the law.
Because credit unions have always served their entire membership fairly and equally.
Because credit unions aren’t large enough to require compliance.
How would you respond to this statement: Credit unions are just like banks; they should be treated just like banks. Please share at least one reason why credit unions are not like banks: