The commercial banks are not similar to the Central bank. Justify the statement. 

Asked by Topperlearning User | 29th Jun, 2016, 12:15: PM

Expert Answer:

  1. The Central bank is the apex bank and is also known as a bank of all the banks. A commercial bank functions under the control of the Central bank.
  2. The Central bank focuses on social welfare, whereas a commercial bank focuses on profit maximisation.
  3. The Central bank does not accept deposits, whereas a commercial bank accepts deposits from the public and provides loans to individuals and households.
  4. The Central bank issues currency, whereas a commercial bank has no authority to issue currency.
  5. The Central bank is an advisor to the government on monetary issues, whereas a commercial bank is not an advisor. 

Answered by  | 29th Jun, 2016, 02:15: PM