Question

What explains the difference between retail and commercial banking?

A) Commercial banks loan money to small businesses, while retail banks loan money to large corporations.

B) Retail banks loan money to small businesses, while commercial banks loan money to large corporations.

C) Commercial banks help small businesses make capital purchases, while retail banks help big businesses invest.

D) Retail banks help big businesses make capital purchases, while commercial banks help consumers invest.

Answer 1

B) Retail banks loan money to small businesses, while commercial banks loan money to large corporations is the correct answer.

Step-by-step explanation:

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

Retail banking is banking at an individual and small level such as checking accounts, personal loans, savings accounts, debit cards, credit cards, contracts and certificates of deposit.

Retail banking gives products to an individual for private use. whereas Commercial banking is the banking on a larger level such as a corporation or a bigger organization.

Commercial banking involves giving services to governments, larger companies, businesses, other organizations

Answer 2

(B) Retail banks loan money to small businesses, while commercial banks loan money to large corporations.

Step-by-step explanation:

Retail banking is related to banking on individual level such as savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs). On the other hand commercial banking is the banking on bigger level such as a company or a higher organization. They perform roles as various types of deposits from public especially from its clients. In other words we can say that retail banking is the sub category of commercial banking.