AProviding savings products and affordable loans through a community-based, member-owned model
BOverseeing the interest rate decisions made by the central bank
CRunning and administering national pension programmes
DRegulating conduct within wholesale financial markets
EGuaranteeing sovereign bond repayments on behalf of the state
✓ Correct answer: A. Providing savings products and affordable loans through a community-based, member-owned modelCredit unions are member-owned cooperatives that promote financial inclusion by offering accessible savings accounts and loans at competitive rates to their communities.
Why the other options are incorrect:
• Overseeing the interest rate decisions made by the central bank: Interest rate policy is the responsibility of the Bank of England, not credit unions.
• Running and administering national pension programmes: National pension schemes are run by government, not credit unions.
• Regulating conduct within wholesale financial markets: Conduct in wholesale markets is regulated by the FCA, not credit unions.
• Guaranteeing sovereign bond repayments on behalf of the state: Guaranteeing government bonds is a state function, not one performed by credit unions.
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