2022 - JAMB Economics Past Questions and Answers - page 5
Commercial banks are different from development banks in that the latter
lend on short-term basis
pay interest on current accounts only
are mostly joint-stock companies
do not deal in foreign currencies
Option D is the correct answer.
Commercial banks perform public utility banking services, including accepting deposits and lending money, whereas development banks are multi-purpose financial institutions established to provide financial assistance to the industrial and agricultural sectors in order to promote development.
The key distinction between them is that commercial banks raise funds by accepting deposits from the public, while development banks obtain funding through borrowing, grants, and the sale of securities.
The use of the bank rate, cash ratio and open market operations constitute
fiscal policy
monetary policy
import policy
export policy
Option B is the correct answer.
The Central Bank implements monetary policy to control and regulate the money supply in the economy. This policy involves various measures such as Open market operations, Bank rate adjustments, and Cash reserve ratio changes.