Types And Functions Of Financial Institutions - Economics Jamb Past Questions and Answers

Question 56 :

• JAMB 2006

If the Central Bank of Nigeria reduces the bank rate, this will cause

A. Money supply to increase
B. Commercial banks to reduce lending
C. Commercial banks to merge
D. Money supply to reduce

Question 57 :

• JAMB 2007

An advantage of electronic banking is that it

A. Enables many customers to operate joint accounts
B. Reduces risk of bank fraud
C. Enables a customer to operate many accounts from different locations
D. Enables a customer to operate his account from different locations

Question 58 :

• JAMB 2007

The non-bank financial institutions that are entrusted with workers contributions towards retirements are

A. Mortgage institutions
B. Investment companies
C. Pension funds custodians
D. Pension funds administrators

Question 59 :

• JAMB 2007

A reduction in the bank rate encourages commercial banks to create money by

A. Decreasing the interest rate
B. Maintaining the interest rate
C. Doubling the interest rate
D. Raising the interest

Question 60 :

• JAMB 2007

Life insurance companies contribute to economic development by holding a part of their assets in

A. Long-term financial instruments
B. Equipment
C. Cash and near money
D. Money-market instruments