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| 1. |
State any three points of distinction between Central Bank and Commercial Banks. |
| Answer» Solution :The FOLLOWING are the differences between CENTRAL bank and commercial bankThe bank, which MONITORS, regulates and CONTROLS the financial system of the economy is known as Central Bank. The financial institution which receives the deposits from people and advances them money is known as Commercial Bank.Central Bank is the banker to banks, government, and financial institution, whereas Commercial Bank is the banker to the citizens.The Central Bank is the supreme monetary authority of the country. As against this, the commercial bank does not have such authority and POWERS. | |