Which type of bank is established to provide long-term credit for development pr
Practice Questions
Q1
Which type of bank is established to provide long-term credit for development projects?
Commercial Bank
Investment Bank
Development Bank
Cooperative Bank
Questions & Step-by-Step Solutions
Which type of bank is established to provide long-term credit for development projects?
Step 1: Understand what a bank is. A bank is a financial institution that accepts deposits and provides loans.
Step 2: Learn about different types of banks. There are many types, including commercial banks, investment banks, and development banks.
Step 3: Focus on development banks. These banks are specifically created to support long-term projects that help in economic development.
Step 4: Recognize the purpose of development banks. They provide long-term credit, which means they lend money for a long time to help fund projects like building roads, schools, or hospitals.
Step 5: Conclude that the answer to the question is development banks, as they are the type of bank established for this purpose.
