What are the difference between commercial bank and central bank as per class 12 syllabus
Anurag Pathak Asked question September 1, 2021
Following are the difference between central and commercial bank.
|Difference||Central Bank||Commercial Bank|
|1.||A central bank acts only in the public interest without regard to profit
as its primary objective.
|The primary objective of a commercial bank is the maximization of profits|
|2.||A central bank does not do ordinary banking business with the general public but does it with the government only.||Commercial banks do ordinary banking business with the general public only.|
|3.||A central bank adds to the money supply by printing new currency notes.||Commercial banks add to the money supply by creating deposits.|
|4.||A central bank is governed by the people connected with the government.||A commercial bank can be governed by both government and private sectors depending on who is the owner of the bank.|
Anurag Pathak Changed status to publish September 2, 2021
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