WAEC - Economics (2022 - No. 33)
Commercial banks are different from development banks in that the latter
lend on short-term basis
pay interest on current accounts only
are mostly joint-stock companies
do not deal in foreign currencies
Wyjaśnienie
Commercial bank is the bank organized to perform public utility banking services such as accepting deposits, lending of money etc. On the other hand, development bank refers to a multi-purpose financial undertaking set up to provide financial aid to the industrial and agricultural sector, to encourage development.
The difference is that raise funds from accepting deposit from the public while development banks borrow, grants and sells securities.
The difference is that raise funds from accepting deposit from the public while development banks borrow, grants and sells securities.