Question
Distinguish Between Cental Bank and Commercial Bank.###Explain five differences between central bank and commercial bank.
| S.No. | Point of Difference | Central Bank | Commercial Bank |
| 1. | Status | It is the apex institution of the country's monetary and banking structure. | It is one of the organs of the money market |
| 2. | Ownership | It is owned by the Government | It is owned by shareholders. |
| 3. | Customers | It is a banker to the Government. | It is a banker to the general public. |
| 4. | Issue of notes | It has the monopoly of note issue. | It cannot tissue notes but only cheques. |
| 5. | Credit control | It controls credit according to the country's needs. | It creates credit to meet the needs of business. |
| 6. | Number | Every country has only one Central Bank. | There are several commercial banks in a country. |
| 7. | Foreign exchange | It is the custodian of the country's foreign currency reserves. | It is the dealer in foreign currencies. |
| 8. | Banker's bank | It is the bankers' bank as it keeps their cash reserves, grants financial accommodation and clears their balances. | It receives deposits from and grants loans to public. |
| 9. | Role | It helps in setting up financial institutions to strengthen money and capital market in the country. | It helps industry and commerce by providing finance and other services. |
| 10. | Designation of the chief executive | Its chief is called "Governor". | Its chief executive is called "Chairman". |
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
| Dr. (₹) | Cr. (₹) | |
| Purchase and Sales | 16,180 | 75,200 |
| Opening Stock | 6,500 | |
| Drawings | 4,000 | |
| Motor Cycle | 12,500 | |
| Cycles and Carts Delivery | 2,500 | |
| Bad Debts | 200 | |
| Debtors and Creditors | 4,000 | 2,000 |
| Vehicle Expenses | 1,100 | |
| Capital | 8,600 | |
| Bills Receivable and Payable | 800 | 1,000 |
| Bank and Cash Balances | 1,800 | |
| Petty Cash | 100 | |
| Insurance Premium | 500 | |
| Salaries | 900 | |
| Petty Expenses | 300 | |
| Wages | 1,500 | |
| Rent | 3,000 | |
| Godown Rent | 1,800 | |
| General Expenditure | 700 | |
| Bank Loan | 2,000 | |
| Carriage Inwards | 500 | |
| Worker's Equipment | 30,000 | |
| Returns | 200 | 280 |
| 89,080 | 89,080 |
| Debit(₹) | Credit(₹) | |
| Opening Stock | 19,000 | |
| Salaries | 10,500 | |
| Wages | 8,000 | |
| Railway Freight - Purchases & Imports | 2,500 | |
| General Office Expenses | 13,000 | |
| Annual Insurance | 2,000 | |
| Plant and Machinery | 50,000 | |
| Purchases and Sales | 1,20,000 | 2,53,000 |
| Rent | 7,500 | |
| Bad Debts and its Recoveries | 300 | 1,000 |
| Buildings and Sheds | 60,000 | |
| Bills Receivable and Payable | 12,200 | 4,000 |
| 10% Bank of Progress Loan | 50,000 | |
| Travel Costs | 15,000 | |
| Returns and Price Adjustments | 3,000 | 1,500 |
| Legal and Other Consultancy Fees | 10,000 | |
| Repairs | 8,600 | |
| Bank Account | 10,000 | |
| Capital and Drawings | 4,500 | 65,000 |
| Interest | 6,000 | |
| Debtors and Creditors | 35,000 | 22,600 |
| 3,97,100 | 3,97,100 |