Commercial banks are different from development banks in that the latter
ECONOMICS
WAEC 2022
Commercial banks are different from development banks in that the latter
- A. lend on short-term basis
- B. pay interest on current accounts only
- C. are mostly joint-stock companies
- D. do not deal in foreign currencies
Correct Answer: D. do not deal in foreign currencies
Explanation
Commercial bank is the bank organized to perform public utility banking services such as accepting deposits, lending of money etc. On the other hand, development bank refers to a multi-purpose financial undertaking set up to provide financial aid to the industrial and agricultural sector, to encourage development. The difference is that raise funds from accepting deposit from the public while development banks borrow, grants and sells securities
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