Which type of cooperative is described as organized for the primary purpose of savings and credit services and other financial services?

• A. Credit Cooperative
• B. Financial Service Cooperative
• C. Cooperative Bank
• D. Insurance Cooperative

Answer: (A)

The main idea here is identifying cooperatives by their primary function in financial services. A credit cooperative is organized mainly to mobilize members’ savings and to provide credit, along with related financial services, to those members. That focus on saving and lending makes it the best fit for a description that centers on savings and credit as the core purpose.

In contrast, a financial service cooperative is a broader category that can encompass a range of financial services beyond just savings and loans. A cooperative bank operates as a formal banking institution owned by its customers, which can look more like a traditional bank than a member-focused savings-and-loans cooperative. An insurance cooperative, on the other hand, concentrates on insurance products. So, for a group whose central aim is savings and credit, a credit cooperative is the most appropriate label.