State with reasons whether you agree or disagree with the following statements.
There is no difference between central bank and a commercial bank.

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Solution

I do not agree with the statement.
Following are the differences between Central and Commercial Banks.
CENTRAL BANK COMMERCIAL BANK
Meaning The bank which looks after the monetary system of the country is known as Central Bank. The establishment, which provides banking services to the public is known as Commercial Bank.
What is it? It is a banker to the banks and the government of the country. It is the banker to the citizens of the nation.

Ownership Public Public or Private
Profit motive It does not exist for making profit for its owners It exist for making profit for its owners.

Objective Public welfare and economic development. Earning Profits
Money supply Ultimate source of money supply in the economy. No such function is performed by it.
Right to print and issue currency notes Yes No
Deals with Banks and Governments General Public
How many banks are there? Only one Many

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