Question

pls help me with this. ​

Answer 1

Answer:

Central Bank

Commercial Bank

Definition

Central bank is the apex financial institution of the country that is concerned with formation of monetary policies and the way money should be regulated in the economy

It is a type of financial institution that is concerned with providing banking services to the general public and businesses by facilitating deposit, offering loan facilities

Ownership

Central bank is always having public ownership

Commercial banks can be either public or private in their ownership

Number of Banks

There is only one central bank in a country

There can be many commercial banks in a country

Profit Motive

Central bank does not operate for making profit

Commercial banks operate with the motive of earning profit

Clients

Commercial banks and the government

Individuals and businesses

Policy creator

Central banks create monetary policy to regulate interest rates in an economy

Commercial banks do not create any policies that are essential for the functioning of an economy

Source of Money Supply

Central banks are the source of money supply in an economy

Commercial banks run on the deposits obtained from the individuals and hence they perform no such function

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