Which financial institution is specifically a non-profit cooperative?

The correct answer, a credit union, is a financial institution that operates as a non-profit cooperative. This means that credit unions are owned and controlled by their members rather than shareholders. Each member, who has an account with the credit union, typically has an equal say in decision-making processes and can vote on key issues, such as electing a board of directors.

Unlike banks, which aim to profit and maximize shareholder value, credit unions focus on serving their members' financial needs. They offer services similar to banks, such as savings accounts, loans, and other financial products but often with lower fees and more favorable interest rates because they reinvest their earnings back into the institution and its members. This cooperative model fosters a sense of community and encourages financial education among members, making credit unions an accessible option for those seeking to improve their financial literacy.

Other financial institutions listed, such as banks, mortgage companies, and investment firms, operate for profit and do not share the same member-focused, cooperative structure as credit unions.