Question 29
Financial InstitutionsThe development banks are essentially different from commercial banks because they
- A.give medium and long term loans
- B.open current accounts for their customers
- C.discount bills of exchange
- D.are lenders of last resort
- E.carry out open market operations
Show the answer and explanation
Answer: A (give medium and long term loans)
Explanation
Development banks specialise in medium- and long-term loans for development projects; commercial banks mainly give short-term loans.