Economics WAEC

The function that distinguishes commercial banks from the central bank is that the former?

A. is a lender of last resort
B. accepts deposits from the public
C. services the public debt
D. regulates foreign exchange

Correct Answer: Option B

B. accepts deposits from the public

Explanation

Commercial banks serve individuals and businesses, while central banks serve the country’s banking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.

The major difference here is that the central bank is the government bank and serves the country in a whole while commercial banks accept deposit from the public

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