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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.
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?
Give any one difference between Commercial bank and Central bank.
Give five points of difference between Commercial and Central Bank.
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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.
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