Question

Explain clearly four differences between a Central Bank and a Commercial Bank.

Answer 1

HEY MATE HERE YOUR ANSWER



CENTRAL BANK:

1.central bank control all other banks.
2.It can control commercial banks.
3.It forms rules and regulations.
4.It fix intereste rates on loans.
5.It gives licences to new banks and old banks to establish new braches.
6. It gives loans to banks.

COMMERCIAL BANKS:

1.commercial banks only run on the way of profit.
2.This banks gives loans to commercial person for COMMERCIALIZATION.
3.This banks gives loans as high interest rates.
4.This banks does not accept deposits.