In terms of accepting deposits and making loans, explain the differences between commercial banks and a central bank
What will be an ideal response?
Commercial banks accept deposits from and make loans to individuals and businesses. Central banks accept deposits from and make loans to commercial banks and the federal government.
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In the Mundell-Fleming model, regardless of whether the economy has perfect capital mobility or not, an increase in the money supply
a. reduces interest rates . b. increases income. c. decreases the trade balance. d. increases capital inflows.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 900 . certified d. Smokers get the same life insurance rates as non-smokers