Financial Institutions - Jamb Economics Past Questions and Answers

Question 51:

• JAMB 1990

The basic purpose of imposing legal reserve requirements on commercial bank is to?

A. Assure the profitability of commercial banks
B. Provide a device through which credit creation by banks can be controlled
C. Provide a proper ratio between earning and non-earning bank assets
D. Provide the Central Bank with working capital

Question 52:

• JAMB 1990

Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%

A. 700.00
B. 600.00
C. 500.00
D. 400.00

Question 53:

• JAMB 1990

Which of the following is a liability of a commercial bank?

A. Deposits in bank
B. Loans made by the bank to individuals
C. Loans made by the bank to other banks
D. Bonds purchased by the bank

Question 54:

• JAMB 1991

One of the functions of Development Banks is to

A. Mint money for the development of the economy
B. Provide short-term loans to commercial banks
C. Provide medium and long-term finance for the development of the banking system
D. Provide medium and long-term finance for the development of the economy

Question 55:

• JAMB 1991

Banks aid economic expansion and development by?

A. Being very strict in lending policies
B. Mobilizing savings for investment lending
C. Paying interest on deposit accounts
D. Charging high interest on loans