Question 21
Financial InstitutionsThe commercial banks differ from non-bank financial institutions because they
- A.contribute to economic development
- B.accept deposits withdrawable by cheque
- C.mobilize savings
- D.invest surplus funds
Show the answer and explanation
Answer: B (accept deposits withdrawable by cheque)
Explanation
Only commercial banks keep current accounts whose deposits can be withdrawn by cheque; the other features are shared with non-bank institutions.