Selasa, 31 Juli 2012
A central bank also provides loans to its customers. But the customers are not individuals as in the case of commercial bank. The customers of central banks are governments, other commercial banks and financial institutions, A country will have one central bank. In England it is the Bank of England. In our country it is the Bank of Indonesia. The central bank often has a duty of formulating and implementing the country's monetary and credit policies, usually in co-operation with the government.
For us individuals, the commercial bank is more important because it directly provides us with services. We can enjoy the services by establishing an account at the bank. There are two kind of account. One is the savings account and the other is the current account. One advantage of having a current account is that we can pay using cheques. This means that we don't have to carry large amounts of money with us, and risk losing it.
Most banks, commercial banks, have two kinds of current accounts. One is the minimum balance account and the other is the special account. The former kind requires the customer to maintain in his account a certain amount as a minimum balance. But the bank will charge the customer a fee for each cheque he or she writes.
1. What makes a central bank and a commercial bank different?
A. It's services
B. It's interests
C. It's customers
D. It's securities
E. It's accounts
2. What account do you need if you want to do some shopping in a Supermarket
without carrying a large amount of money?
D. Current account
E. Saving account
3. It seems impossible for us, individuals, to borrow money from ...
A. Commercial bank
B. Central bank
C. Private bank
D. Foreign bank
E. Financial institution