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
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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.
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Which institution formulates and implements monetary policy?
Central banks
Commercial banks
Government treasuries
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Who has the authority to issue and regulate the country's currency?
Central banks
Commercial banks
Government treasuries
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What is the primary objective of commercial banks?
To regulate the financial system
To regulate the financial system
To generate profits
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Explain one function that distinguishes a central bank from a commercial bank.
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What is the primary focus of commercial banks?
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