Concept: Development banks are specialised institutions that finance long-term development projects, unlike commercial banks which provide general banking services.
Explanation: In this question, “the latter” refers to development banks. A commercial bank accepts deposits, gives short-term loans, and deals in foreign exchange. A development bank is usually set up by the government to provide medium and long-term loans for industry, agriculture, and infrastructure. It does not carry out ordinary commercial banking activities.
Option A is false because development banks do not lend on a short-term basis. Option B is false because development banks do not operate current accounts like commercial banks. Option C is false because development banks are not mostly joint-stock companies; they are mostly government-owned institutions. The important difference shown in the options is that development banks do not deal in foreign currencies, whereas commercial banks do.
Answer: D. do not deal in foreign currencies