Multiple Choice
Which of the following is the responsibility of the buying function of a business?
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1. Introduction to Accounting
Types of Accounting
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Which type of bank has customers who are also owners?
A
Credit union
B
Central bank
C
Commercial bank
D
Investment bank
Verified step by step guidance1
Understand the concept of ownership in financial institutions: Some banks operate as cooperatives, meaning their customers are also their owners. This is a key characteristic of one specific type of bank.
Learn about credit unions: Credit unions are member-owned financial institutions. When you deposit money into a credit union, you become a member and part-owner of the institution.
Differentiate between other types of banks: Central banks, commercial banks, and investment banks do not operate on a member-ownership model. They are typically owned by shareholders or government entities.
Focus on the unique structure of credit unions: Credit unions are designed to serve their members rather than maximize profits. This is why customers are also owners.
Conclude that the correct answer is 'Credit union,' as it aligns with the description of customers being owners.
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