WAEC Economics 2001 Question 38

Question 38

Financial Institutions

Short-term loans can be sourced from

  1. A.the central bank
  2. B.development banks
  3. C.mortgage banks
  4. D.commercial banks.
Show the answer and explanation

Answer: D (commercial banks.)

Explanation

Commercial banks specialise in short-term loans and overdrafts; development and mortgage banks give long-term loans.