What explains the difference between retail and commercial banking?

Commercial banks loan money to small businesses, while retail banks loan money to large corporations.
Retail banks loan money to small businesses, while commercial banks loan money to large corporations.
Commercial banks help small businesses make capital purchases, while retail banks help big businesses invest.
Retail banks help big businesses make capital purchases, while commercial banks help consumers invest.

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27-05-2022
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What explains the difference between retail and commercial banking?

Commercial banks loan money to small businesses, while retail banks loan money to large corporations.
Retail banks loan money to small businesses, while commercial banks loan money to large corporations.
Commercial banks help small businesses make capital purchases, while retail banks help big businesses invest.
Retail banks help big businesses make capital purchases, while commercial banks help consumers invest.

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vktanonymous vktanonymous · Answer 1 · 2022-06-03T13:01:52+02:00

The difference between retail and commercial banking is that retail banks loan money to small businesses, while commercial banks loan money to large corporations.

What is commercial banking?

The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking.

Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.

Thus, option B is true that retail banks loan money to small businesses, while commercial banks loan money to large corporations.

Learn more about commercial banking here,

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ssamantha1818 ssamantha1818 · Answer 2 · 2022-06-30T23:36:43+02:00

ssamantha1818 ssamantha1818

30-06-2022

Answer: B - Retail banks loan money to small businesses, while commercial banks loan money to large corporations.

Explanation: Edge

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