The difference between the central bank and commercial bank …

JAMB Commerce 2023 200 views
Source: JAMB · 2023

The difference between the central bank and commercial bank is that the former

  1. discount treasury bills
  2. give loans to the public
  3. saves valuable of individual
  4. serves as lender of last resort ✓
Explanation

The central bank is the bank of banks. When commercial banks run short of cash, it serves as lender of last resort.

Commercial banks also give loans to the public and save people’s money, so those are not what makes the central bank different.

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