One of the functions of commerical banks that cannot be performed by central banks is

Assessment: JAMB UTME - Commerce - 2022 Subject: Commerce

Question 1 Report

One of the functions of commerical banks that cannot be performed by central banks is
Answer Details
One of the functions of commercial banks that cannot be performed by central banks is the collection of deposits from the public. Commercial banks are financial institutions that accept deposits from individuals and businesses and use those funds to make loans to others. Central banks, on the other hand, are responsible for implementing monetary policy and maintaining financial stability. While central banks do play a role in regulating commercial banks, they do not accept deposits from the public like commercial banks do. Therefore, the collection of deposits from the public is a function that is unique to commercial banks and cannot be performed by central banks.

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