15 concise review questions. Click for feedback; use for exam prep.
1) Credit unions are member-owned cooperatives that serve their depositors.
2) The FDIC insures all credit unions in the United States.
3) VyStar Credit Union began as Jax Navy Federal Credit Union serving military personnel.
4) Credit unions raise capital by issuing stock to investors, similar to banks.
5) Credit union members elect the board of directors on a one-member-one-vote basis.
6) VyStar is a federally chartered credit union under the NCUA.
7) Credit unions can offer checking accounts, car loans, and mortgages like banks do.
8) The “field of membership” refers to a bank’s geographic branch network.
9) Credit unions return earnings to members through better rates and dividends.
10) VyStar’s expansion into Georgia shows how credit unions can grow through community charters.
11) Credit unions must pay corporate income taxes like commercial banks do.
12) NCUA insurance protects up to $250,000 per member, per institution.
13) Credit unions are governed by shareholders seeking maximum return on equity.
14) VyStar merged with other credit unions to expand technology and services.
15) Credit unions are regulated only by state agencies and never by federal ones.
Key ideas: Member-owned, NCUA insurance, non-profit status, democratic voting, VyStar’s roots at NAS JAX, community charter expansion, state vs. federal regulation.