7. A _______ is a group of people who agree to save their money together and to make loans to each other at a relatively low rate of interest.


[A. commercial bank]
B. credit union
C. Christmas club
D. investment firm

A commercial bank does not charge relatively low interest rates.

How does your book describe these groups?

i think it is b credit unnion

I think you are right.

The correct answer is B. credit union.

To arrive at this answer, we can eliminate options A, C, and D by understanding their definitions:

- A commercial bank (option A) is a financial institution that provides various services such as accepting deposits, making loans, and offering basic financial products to individuals and businesses. However, commercial banks do not necessarily focus on getting a group of people to save money together and make loans to each other.

- A Christmas club (option C) is a type of savings account offered by some banks or credit unions with the aim of saving money specifically for holiday-related expenses. While it involves saving money, it does not necessarily involve making loans to one another.

- An investment firm (option D) refers to a company that pools together funds from multiple investors and uses them to invest in a range of financial instruments such as stocks, bonds, or real estate. Investment firms primarily focus on generating returns for their investors rather than providing a platform for saving money or making loans.

Now, let's consider option B, credit union. A credit union is a financial cooperative where a group of people with a common interest, such as employees of a company or members of a community, pool their money together to save and provide loans to each other at lower interest rates compared to other financial institutions. Credit unions are not-for-profit organizations, and they often offer various financial services such as savings accounts, checking accounts, and mortgages specifically tailored to the needs of their members.

Therefore, the correct answer is B. credit union.