Advertisements
Advertisements
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.
How does a central bank differ from a commercial bank?
Give any three points of difference between Central Bank and Commercial Bank.
To what extent does Central Bank differ from Commercial Banks?
Advertisements
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 a banker to the general public. |
| Issue of Notes | It has the monopoly on note issuance. | It cannot issue notes but only denques. |
| 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.
APPEARS IN
RELATED QUESTIONS
Any ‘five types’ of banks.
A bank which is known as bankers bank.
How is a commercial bank different from a central bank?
Select the proper option from the options given below and rewrite the sentences:
In E-business, payments have to be made ______
Distinguish between the following:
Current account & Recurring deposit account
Write Short Note on the following:
Types of banks
State with Reasons whether the following statement is TRUE or FALSE.
Overdraft facility is given to saving account holders.
Give the meaning of Commercial Banks?
The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.
RBI is ______.
It carries out the country's monetary policy.
Name the central bank of our country.
Name the largest commercial bank of India.
“The central bank is a banker’s bank.” Explain.
Distinguish between saving account and current account.
What is meant by the central bank of a country?
What are the important functions of Central Bank? Which of these functions are more important in a country like India?
Describe the advantages of opening a bank account.
______ are of several types, e.g., commercial, central, industrial, merchant, exchange, agricultural, cooperative, postal and indigenous.
How do exchange banks help in financing foreign trade?
Why was EXIM Bank set up in India?
Explain the four functions of the Reserve Bank of India.
Which type of bank is called the apex bank of India?
Which type of bank mainly provides long-term credit for agriculture?
Regional Rural Banks (RRBs) are primarily established to ______.
Which bank specifically supports India’s exports and imports through long-term finance?
Which type of bank is most closely associated with foreign trade finance and foreign exchange services?
