The differences between the central bank and commercial bank is that the former ______?

A. discount treasury bills
B. give loans to the public
C. saves valuable of individual
D. serves as lender of last resort

Correct Answer:

Option D – serves as lender of last resort

Explanation

Options A, B,C are duties carried out by the commercial banks. Central bank is the apex bank. They offer loans to banks or other eligible institutions that are experiencing financial difficulties and have no other means of borrowing and fails to obtain credit.