Differences between central bank and commercial bank. - SS2 Commerce Past Questions and Answers - page 1
What is the primary purpose of a central bank?
To regulate the financial system
To regulate the financial system
To provide loans to individuals and businesses
What is a key difference between a central bank and a commercial bank?
Central
Central banks have regulatory authority, while commercial banks offer financial services.
Central banks focus on profit generation, while commercial banks manage monetary policy.
Central banks have regulatory authority, while commercial banks offer financial services.
Which institution formulates and implements monetary policy?
Central banks
Commercial banks
Government treasuries
Who has the authority to issue and regulate the country's currency?
Central banks
Commercial banks
Government treasuries
What is the primary objective of commercial banks?
To regulate the financial system
To regulate the financial system
To generate profits
Explain one function that distinguishes a central bank from a commercial bank.
One function that distinguishes a central bank from a commercial bank is the central bank's authority to regulate the financial system and implement monetary policy.
What is the primary focus of commercial banks?
The primary focus of commercial banks is to generate profits by providing financial services to customers, such as accepting deposits and offering loans.