Question
How is a commercial bank different from a central bank?###Write three differentiate between commercial and central bank.###Give five points of difference between Commercial and Central Bank.
Basis | Central Bank | Commercial Bank |
(i) Meaning | Central bank is an apex institution of the monetary and banking structure of the country. | It just operates under the guidelines of the central bank |
(ii) Object | Its main objective is to promote social welfare | Its main objective is to earn profit. |
(iii) Ownership | Central bank is generally a government owned institution | Commercial banks may be both privately owned or government owned institutions. |
(iv) Note-issue | It has got the monopoly right of note-issue | Commercial banks do not have such rights. |
(v) Banker | It is a banker to the government and commercial banks. | Commercial bank is a banker to the general public only |
(vi) Number | There can be only one central bank with a few offices in a country. | There are a number of commercial banks in every country with a large number of branches all over the country and also even abroad. |
(vii) Credit | It controls credit | It creates credit. |
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.