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Question
Central bank is owned by the ____ while commercial bank is owned by ______.
Options
Shareholders, shareholders
Government, shareholders
Shareholders, government
None of these
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Solution
Central bank is owned by the government while commercial bank is owned by shareholders.
Explanation:
- Central banks are often owned by the government or the public sector, which gives them some independence in carrying out their monetary policy objectives.
- Commercial banks, on the other hand, are privately owned by individuals or shareholders and function solely for profit.
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