Question

question 5
4 pts
when a financial institution is a mutual association, it means that it is owned by the
borrowers.
depositors.
management.
local government.
creditors.
question 6
4 pts
credit unions are
not providers of insured deposits.
mutual associations.
special commercial lenders.
mortgage lenders.
available to the general public.

Explanation:

• Question 5: A mutual - association financial institution is owned by its depositors. Depositors are the ones who have a stake in the institution as it is structured for their mutual benefit. Borrowers are those who take loans, management runs the institution but doesn't own it in a mutual - association sense, local government ownership is different (like in some public - sector banks), and creditors are those to whom the institution owes money (not the owners in a mutual - association).
• Question 6: Credit unions are mutual associations. They are member - owned (by depositors/members). They do provide insured deposits (in many countries, e.g., in the US, deposits in credit unions are insured by the National Credit Union Administration). They are not special commercial lenders (commercial lenders have a different business model focused more on profit for shareholders rather than member - benefit). They are not just mortgage lenders (they offer a variety of financial services like savings, loans, etc.). And they are not available to the general public in the sense that membership is often restricted (e.g., based on a common bond like working for a particular company or living in a particular community).

Answer:

• Question 5: depositors.
• Question 6: mutual associations.