Federal Home Loan Banks are categorized as what type of organization?

Federal Home Loan Banks are categorized as cooperatives because they operate on a member-owned basis. This structure allows member financial institutions, such as banks and credit unions, to access funds at lower rates, which they can then use to provide loans to their customers. By being cooperatives, they emphasize the principles of mutual assistance and support among their members, aligning with the goal of promoting affordable housing and community development. This foundational structure enables the Federal Home Loan Banks to fulfill their mission more effectively by being more responsive to the needs of the financial institutions that comprise their membership.

While the other options suggest different organizational structures, they do not accurately reflect the member-centric model and the cooperative principles that underlie the functioning of Federal Home Loan Banks.