Question

Banking may be subdivided into at least three categories of banks. Match up the definitions with the appropriate name.

Answer 1

There are different types of banks according to their classification. There are seven major type of banks that exist including retail, corporate,  commercial, exchange, industry, cooperative and central.

Explanation:

1. A bank that specializes in retail or consumer banking in a local market.

Commercial Bank

This type of bank is based on shoort term credit and ease of withdrawal.

II. A bank that engages in a complete array of wholesale commercial banking activities and usually also provides retail banking services.

Industrial banks

These banks have large capitals that they invest in commercial activities.

III. A bank that is located in a financial center and relies on nondeposit or borrowed sources of funds for a significant portion of its liabilities.

Central Bank

these banks are often regulated and controlled by the government of the country.