JAMB Commerce 1998 Question 26

Question 26

Banking

The most important difference between community banks and peoples' bank is that the

  1. A.latter is owned solely by government while the former are not
  2. B.former cater for rural dwellers while the latter caters for both rural and urban dwellers
  3. C.former are service oriented while the latter is profit oriented
  4. D.latter advances loans to the public while the former advance loans to rural dwellers only.
Show the answer and explanation

Answer: A (latter is owned solely by government while the former are not)

Explanation

The People's Bank was owned by the Federal Government; community banks were owned by communities and private people.