Financial Institutions - Jamb Economics Past Questions and Answers

Question 81:

• JAMB 2003

The term 'Near money' is best described as

A. A financial instrument that is readily convertible to cash
B. Government financial instrument that is convertible to cash
C. Time deposits with low interest rates
D. A financial asset that is convertible to cash

Question 82:

• JAMB 2003

The distinguishing characteristic between the money market and the capital market lies in whether the

A. Securities are primary or secondary
B. Debt instruments provided are long-term or short-term
C. Funds mobilized are private or public
D. Securities are in debentures or ordinary shares

Question 83:

• JAMB 2003

Insurance companies, pension and provident funds and unit trusts are all examples of

A. Rural-based revenue mobilizers
B. Non-governmental organisations
C. Government financial agencies
D. Non-bank financial institutions

Question 84:

• JAMB 2003

The monetary control instrument most effectively used by the Central Bank of Nigeria is the

A. Open market operations
B. Margin requirment
C. Reserve ratio
D. Discount rate

Question 85:

• JAMB 2003

The commercial banks differ from non-bank financial institutions because they

A. Accept deposits withdrawable by cheque
B. Mobilize savings
C. Invest surplus funds
D. Contribute to economic development