(a) Central bank is the apex monetary institution which has been specially empowered to exercise control over the banking system of the country. On the other hand, the commercial banks, are the constituent units of the banking system. Central bank does not operate with profit motive, like commercial banks. 

Methods adopted by Commercial Banks to advance credit to borrowers are as follow : 

1. Cash Credit : In cash credit, the bank advances a ‘cash loan’ a specified limit to the customer, against a bond or any other security. A borrower is required to open a current account and bank allows the borrower to withdraw upto the full amount of the loan. The interest is charged only on the amount actually utilized by the borrower and not on the loan sanctioned. 

2. Loans : A loan is a specified amount sanctioned to the credit of a borrower for a fixed period, However, before sanctioning the loan, the bank is required to ascertain and satisfy itself about the ability of the borrower to repay according to the soundness of his scheme or business, and the genuineness of his purpose. Invariably, a loan is granted against some kind of security of assets or personal security of the borrower and the interest is charged on the full amount sanctioned as loan, irrespective of the fact, whether full amount or part of it has been used. In case of loans, the borrower is provided with the facility to repay the loan in installments or as a lump-sum. 

3. Discounting of Bills of Exchange : The banks provide financial help to the merchants and exporters by way of discounting their bills of exchange. However, these merchants and exporters must be the customers of that bank. In such facility; the bank pays the amount of bill presented by the customer, after deducting the usual bank discount. In this way, the customer gets the amount of the bill before the date of its maturity. As such the bank assists its customers to a great extent by accepting their bills and providing them with liquid assets (money). Usually a bill matures after 90 days or so and then the bank present it to the acceptor and receives full amount of the bill. 

(b) Acc. to Richard Cantillon, “An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. ” Entrepreneur promotes economic growth in the following ways : 

(i) Increasing Production : Entrepreneurship results in harnessing the various factors of production such as land, labour, capital and technology to the fullest extent. Entrepreneurs take up production of goods and services for meeting the demand of consumers, import substitution and exports. 

(ii) Employment Generation : Entrepreneurship creates job opportunities in an economy. When economies are into recession, large business units retrench their labour force and workers search for job in small business units. (iii) Innovation : Entrepreneurship results in new technologies and products that displace older methods and products. It results in higher income and wealth. 

(iv) Increasing Competition : Entrepreneurship results in innovation which leads to the development of new products, services and methods of production. Consequently competition increases in the industry as a whole leading to better products and lower prices.