Financial Institutions - Jamb Economics Past Questions and Answers

Question 101:

• JAMB 2008

If the required reserves of a bank is 20% and N10 000 is paid into its demand deposit account, what is the excess reserves?

A. N2000
B. N18 000
C. N12 000
D. N8 000

Question 102:

• JAMB 2008

Contractionary monetary policy is used to

A. Control inflation
B. Bridge the deflationary gap
C. Expand the output level
D. Deregulate the economy

Question 103:

• 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 104:

• JAMB 2009

The reform in the banking sector in Nigeria is principally motivated by the need to

A. Increase the capital base of banks
B. Provide more money to run the economy
C. Minimize the rate of bank failures
D. Enhance efficiency in bank operations

Question 105:

• 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