Financial Institutions - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 1988

Restriction on credit creation by commercial banks can be effected through?

A. An overdraft
B. Loans and advances
C. Demand deposits
D. Liquidity ratio

Question 47:

• JAMB 1988

Which of the following factors enhances the ability of commercial banks to create money?

A. Reduction in the reserve ratio
B. Leakage of cash out of banking system
C. Excess of reserves
D. Insistence on collateral security

Question 48:

• JAMB 1988

Merchants banks perform all the following functions EXCEPT?

A. Raising of capital for industry
B. Provision of current account facilities
C. Management of investment portfolios
D. Provision of credit for overseas trade

Question 49:

• JAMB 1988

Deficit financing is mostly facilitated by the existence of?

A. Stock exchange market
B. Commercial bank
C. Central bank
D. Capital market

Question 50:

• JAMB 1989

Commercial bank reserves at the Central Bank have the effect of?

A. Controlling credit and money supply
B. Discouraging banking operations
C. Advancing trade prospects
D. Reducing bank frauds