Which statement is true about savings and loans?

Savings and loans are financial institutions primarily designed to promote saving and provide loans, particularly for home purchases. The correct statement regarding their nature is that they can be community-focused or investor-owned.

Community-focused savings and loans emphasize local deposits and loans that benefit the community, often supporting affordable housing and local development. In contrast, investor-owned savings and loans may prioritize profit and shareholder value, sometimes expanding beyond the local community to seek more extensive investment opportunities. This dual capacity allows savings and loans to cater to various needs in different economic environments, which underscores their versatility as financial institutions.

The other statements do not accurately reflect the nature of savings and loans. They are not limited to serving large corporations, which is a misunderstanding of their primary customer base that often includes individuals and families seeking loans for housing and personal needs. Their lending practices are diverse, and they do not exclusively offer high-interest loans; rather, they offer a range of loan products that can include competitive interest rates. Additionally, while savings and loans are prevalent in urban areas, they can also be found in rural areas, serving communities outside the urban landscape.