Commercial banks are different from development... - JAMB Economics 2022 Question
Commercial banks are different from development banks in that the latter
A
lend on short-term basis
B
pay interest on current accounts only
C
are mostly joint-stock companies
D
do not deal in foreign currencies
correct option: d
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.
Please share this, thanks:
Add your answer
No responses