1. State 2 major differences between a commercial bank and an investment bank.

(50 words max)

Difference in Customer: Commercial banks provides service to general people, but investment banks
provide service to investors, corporation, and government.

Difference In Services: Commercial Banks offers deposits, mortgage loans, lending loans whereas
Investment Banks offers buying and selling of bonds and stocks, raise and capital for clients and advisory
services.

2. State 2 major differences between a commercial bank and an non-bank financial institution in
Bangladesh. (50 words max)

Commercial Banks are licensed under the bank company act, 1991 and possess banking license. Non-
bank financial institutions are regulated under Financial Institution Act, 1993 and controlled by
Bangladesh Bank, so they do not possess any banking license and cannot accept deposits.

Commercial banks are focused on generating profit, but non-bank financial institutions are not profit
oriented.

3. State 2 major differences between a common stock and a bond. (50 words max)

Ownership: Common Stocks provides proportional ownership in the issuing organization. But Bonds do
not offer any ownership rather it is a form of debt that the issuing entity promises to repay at maturity.

Repayment Priority: If any organization goes in liquidation, Bonds will get higher priority over stocks for
repayment.

4. The government of Bangladesh has recently launched Unique Business Identification (UBID)
numbers for e-commerce platform. State ONE benefit and ONE drawback of such a move. (50
words max)

Benefit: UBID will incorporate the e-commerce businesses across the whole country in a single platform.
So, the industry will be more regulated and offer more protection for customers.

Drawback: Most e-commerce platforms in Bangladesh are not well structured and lack the necessary
documentations like TIN and Trade License. It may discourage young entrepreneurs to start new e-
commerce business.

5. The government of Bangladesh provides more than 10% interest/profit on Sanchaypatra while,
commercial banks has a cap of 6% interest on deposits by citizens. State ONE benefit and ONE
drawback of such a move. (50 words max)

Benefit: With higher interest rate on Sanchaypatra, Government can easily source the required capital
and citizens are getting higher profit with lower risk.

Drawback: Due to the lower interest rate offered by commercial banks, citizen are reluctant to deposit
in them and this may create shortage in available fund. It may create higher borrowing rate from
commercial banks.