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Commercial banks are different from development banks in that the latter

Commercial banks are different from development banks in that the latter
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Lend on short-term basis
  • B Pay interest on current accounts only
  • C Are mostly joint-stock companies
  • D Do not deal in foreign currencies
Correct Answer: Option D
Explanation:
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.

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