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WAEC Economics 2022 Objective — Question 38

Question 38 of 50 from the West African Examinations Council (WAEC) 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 basisCorrect
  • B. pay interest on current accounts only
  • C. are mostly joint-stock companies
  • D. do not deal in foreign currencies

Explanation

Development banks provide long-term loans for development projects, while commercial banks primarily lend on a short-term basis.

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