Question on: WAEC Economics - 2017
The function that distinguishes commercial banks from the central bank is that the former
A
is a lender of last resort
B
accepts deposits from the public
C
services the public debt
D
regulates foreign exchange
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Correct Option: B
Commercial banks serve individuals and businesses, while central banks serve the country'sbanking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.
the major difference here is that, the central bank is the government bank and serves the country in a whole while commercial banks accepts deposit from the public
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