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

Question 61 :

• JAMB 2009

The ability of commercial banks to create money depends on the

A. Reserve ratio
B. Liquidity ratio
C. Interest rate
D. Capital base

Question 62 :

• JAMB 2009

A manufacturer who wants to build a new plant will source funds from the

A. Commercial banks
B. Money market
C. Capital market
D. Government

Question 63 :

• JAMB 2010

By buying treasury bills, the Central Bank of Nigeria intends to

A. Increase money supply in the economy
B. Reduce the cash reserve ratio for banks
C. Reduce money supply in the economy
D. Increase the capital base of commercial banks

Question 64 :

• JAMB 2010

One of the functions of commercial banks is

A. Maintaining stable price in the economy
B. Regulating monetary policies
C. Granting loans to customers
D. Issuing bank notes and coins

Question 65 :

• JAMB 2012

The minimum amount which banks are required to deposit with the central bank is determined by the

A. Liquidity ratio
B. Cash reserve ratio
C. Minimum lending rate
D. Aggregate credit ceiling