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
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.
3
Which institution formulates and implements monetary policy?
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A
Central banks
B
Commercial banks
C
Government treasuries
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
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
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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