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

Economics
JAMB 2025

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

  • A. accepts deposits from the public
  • B. services the public debt
  • C. regulates foreign exchange
  • D. is a leader of last resort
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Correct Answer: Option A
Explanation

Commercial banks are distinguished from central banks in many ways, one of which is that they accept deposits from the public.
Central banks are primarily responsible for currency stability, controlling inflation, and economic policy. Commercial banks, on
the other hand, are profit-based institutions that accept deposits from the public and use those funds to offer loans. They make
money by charging interest on these loans, which are given to businesses, individuals, and other organizations.


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