The function that distinguishes commercial banks from the central bank is that the former
ECONOMICS
WAEC 2017
The function that distinguishes commercial banks from the central bank is that the former
- A. is a lender of last resort
- B. accepts deposits from the public
- C. services the public debt
- D. regulates foreign exchange
Correct Answer: B. accepts deposits from the public
Explanation
Commercial banks serve individuals and businesses, while central banks serve the country's banking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities. the major difference here is that, the central bank is the government bank and serves the country in a whole while commercial banks accepts deposit from the public
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *

