All categories

3 years ago

What is the main difference between credit unions and banks?

Business

1 answer:

LenKa [72]3 years ago

7 0

Answer:

Banks are for profits; Credit unions are non-profit organizations.

Explanation:

The main difference between credit unions and banks is that while credit unions are non-profit making institutions, banks are for profits.

Credit unions, in general, have better customer service than banks. They charge lower transaction fees but have higher interest rates.

Banks have higher transaction fees but lower interest rates compared to credit unions. Due to their profit motives, banks will offer more convenience. They have more branches to cover different locations. They offer a wider range of products and services and operate on advanced technology.

You might be interested in

Suppose that a certain fortunate person has a net worth of $76.0 billion ($7.60×10107.60×1010). If his stock has a good year and

iogann1982 [59]

Answer:

new net worth = 79.2 billion

Explanation:

given data

net worth = $76.0 billion

gains = $3.20 billion

to get here

new net worth

solution

we get here new net worth that is express as

new net worth = net worth + gains .............................1

put here value and we will get here

new net worth = $76.0 billion + $3.20 billion

new net worth = 79.2 billion

4 0

3 years ago

Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for th

Ksenya-84 [330]

Answer:

For Department A, the manufacturing overhead allocation rate is : 300%

For Department B, the manufacturing overhead allocation rate is : 50%

Manufacturing overhead costs allocated to Job #432 : $30,000.

Explanation:

Apple Valley Corporation uses job cost system and it allocates overhead cost to job on basis of manufacturing labor cost.

1. To identify the manufacturing overhead allocation rate for department A:

(Manufacturing Overhead department A / Direct Manufacturing Labor Department A) * 100

= ($600,000 / $200,000) * 100

= 300%

2. To identify the manufacturing overhead allocation rate for department B:

(Manufacturing Overhead department B / Direct Manufacturing Labor department B) * 100

= ($400,000 / $800,000) * 100

= 50%

3. To calculate the manufacturing overhead costs allocated to Job #432:

[(Department A direct labor * Manufacturing Overhead department A) / Direct Manufacturing Labor of department A ] + [(Department B direct labor * Manufacturing Overhead department B) / Direct Manufacturing Labor of department B ]

= [( $8,000 * $600,000) / $200,000] + [( $12,000 * $400,000) / $800,000]

= $30,000.

4 0

3 years ago

If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year, Find the amount in the bank after 14 y

Harlamova29_29 [7]

Answer:

1. Interest compounded annually = $18,049.74

2. Interest compounded quarterly = $18,493.77

3. Interest compounded Monthly = $18,598.16

4. Interest compounded continuously = $18,651.19

Explanation:

First let me state the formula for compound interest:

The future value of a certain amount which is compounded is the total amount (Principal + interest) on the amount of money, after compound interests have been applied, and this is shown below:

FV = PV $(1+\frac{r}{n} )^{n*t}$

where:

FV = Future value

PV = Present value = $7,000

r = interest rate in decimal = 0.07

n = number of compounding periods per year

t = compounding period in years = 14

For interests compounded continuously, the Future value is given as:

FV = PV × $e^{r*t}$

where

$e$ is a mathematical constant which is = 2.7183

Now to calculate each on the compounding periods one after the other:

1. Interest compounded annually:

here n (number of compounding periods annually) = 1

Therefore,

FV = 7,000 × $(1+\frac{0.07}{1})^{14}$

FV = 7,000 × $1.07^{14}$ = $18,049.74

2. Interest compounded quarterly:

here, n = 3 ( there are 4 quarters in a year)

FV = 7,000 × $(1+\frac{0.07}{4} )^{4*14}$

FV = 7,000 × $1.0175^{56}$ = $18,493.77

3. Interest compounded Monthly:

here n = 12 ( 12 months in a year)

FV = 7,000 × $(1+\frac{0.07}{12} )^{12*14}$

FV = 7,000 × $1.005833^{168}$ = $18,598.16

4. Interests compounded continuously:

FV = PV × $e^{0.07 * 14}$

FV = 7,000 × 2.66446 = $18,651.19

3 0

3 years ago

Prepare general journal entries to record the following transactions. No explanations.Jan. 3 Paid office rent, $1,600.4 Bought a

MArishka [77]

Answer:

Jan. 3 Paid office rent, $1,600.

Dr Rent expense 1,600

Cr Cash 1,600

4 Bought a truck costing $50,000, making a down payment of $7,000.

Dr Truck 50,000

Cr Cash 7,000

Cr Accounts payable 43,000

6 Paid wages, $3,000.

Dr Wages expense 3,000

Cr Cash 3,000

7 Received $16,000 cash from customers for services performed.

Dr Cash 16,000

Cr Service fees 16,000

10 Paid $4,100 owed on last month's bills.

Dr Accounts payable 4,100

Cr Cash 4,100

12 Billed credit customers, $5,300.

Dr Accounts receivable 5,300

Cr Service fees 5,300

17 Received $1,800 from credit customers.

Dr Cash 1,800

Cr Accounts receivable 1,800

19 Taylor Gordon, the owner, withdrew $1,700.

Dr Taylor Gordon, Drawing 1,700

Cr Cash 1,700

23 Paid $700 on amount owed for truck.

Dr Accounts payable 700

Cr Cash 700

29 Received bill for utilities expense, $255.

Dr Utilities expense 255

Cr Accounts payable 255

4 0

3 years ago

The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The proble

shusha [124]

Answer:

Insolvent banks;Solvent banks.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The problem with bank runs is not that insolvent banks will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause solvent banks to fail and spread to the rest of the financial system.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

6 0

3 years ago