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Question
Distinguish between:
Central Bank and Commercial Bank
Solution
| Basis | Central Bank | Commercial Bank |
| Objective | The main objective of this bank is to regulate and control the functioning of the commercial banks. | The main objective of this bank is profit making. |
| Issue of notes | It has the exclusive right to issue currency notes and coins. | It cannot issue currency notes and coins. |
| Public dealing | It doesn’t deal with the public directly. It acts as a banker to other banks and to the government. | It deals with the general public directly. |
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