Differences between central bank and commercial bank. - SS2 Commerce Past Questions and Answers - page 1

1

What is the primary purpose of a central bank?

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A

To regulate the financial system

B

To regulate the financial system

C

To provide loans to individuals and businesses

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2

What is a key difference between a central bank and a commercial bank?

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A

Central

B

Central banks have regulatory authority, while commercial banks offer financial services.

C

Central banks focus on profit generation, while commercial banks manage monetary policy.

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3

Which institution formulates and implements monetary policy?

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A

Central banks

B

Commercial banks

C

Government treasuries

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4

Who has the authority to issue and regulate the country's currency?

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A

Central banks

B

Commercial banks

C

Government treasuries

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5

What is the primary objective of commercial banks?

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A

To regulate the financial system

B

To regulate the financial system

C

To generate profits

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6

Explain one function that distinguishes a central bank from a commercial bank.

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7

What is the primary focus of commercial banks?

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