STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW

I. Introduction
- Definition of central bank and commercial bank
- Importance of understanding the differences between the two

II. Features of a Central Bank
- Owned by the government
- Objective is to create price stability
- Only one in a country issues notes and coins
- Operates monetary policy/sets the rate of interest (base rate)
- Intervenes in foreign exchange markets to influence the exchange rate
- Lender of last resort to governments
- Supervises and regulates the financial system

III. Features of a Commercial Bank
- Owned by shareholders/privately owned
- Objective is to make a profit
- Usually many commercial banks in a country
- Exchanges foreign currency
- Accepts deposits from households and firms
- Lends to households and firms
- Provides insurance services to households and firms

IV. Differences between Central Bank and Commercial Bank
- Ownership
- Objectives
- Number of banks in a country
- Functions

V. Importance of Central Bank and Commercial Bank in the Economy
- Central bank's role in maintaining price stability and regulating the financial system
- Commercial bank's role in providing financial services to households and firms

VI. Conclusion
- Recap of the differences between central bank and commercial bank
- Importance of understanding the roles of both in the economy.