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Questions
Mention two differences between the Central Bank and a Commercial Bank.
Write any two differences between:
Central and Commercial banks
How is a commercial bank different from a central bank?
Write three differentiate between commercial and central bank.
Solution
| Points of Difference | Central Bank | Commercial Bank |
| Status | It is the apex institution of the country’s monetary and banking structure. | It is one of the organs of the money market. |
| Ownership | It is owned by the Government. | It is owned by shareholders. |
| Objective | It is a non-profit institution. | It is a profit-making institution. |
| Customers | It is a banker to the Government. | It is banker to general public |
| Issue of Notes | It has the monopoly of note issue. | It cannot issue notes but only dneques. |
| Credit Control | It controls credit according to the country's needs. | It creates credit to meet the needs of business. |
Notes
Students should refer to the answer according to their questions.
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