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NECO Economics 2022 Objective — Question 38

Question 38 of 50 from the National Examinations Council (NECO) Economics 2022 Objective paper, with the correct answer and a full explanation.

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Commercial banks are different from development banks in that the latter

  • A. lend on short-term basis
  • B. pay interest on current accounts only
  • C. are costly to joint-stock companies
  • D. do not deal in foreign currenciesCorrect

Explanation

Development banks provide long-term loans for capital/development projects and do not deal in foreign currencies, unlike commercial banks.

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