Financial Institutions - Jamb Economics Past Questions and Answers

Question 106:

• 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 107:

• 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 108:

• JAMB 2011

Bank consolidation policy in Nigeria is a measure to increase

A. The capital base of banks
B. Employment opportunities in banks
C. The number of shareholders
D. The number of branches

Question 109:

• 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

Question 110:

• JAMB 2012

The major function of money market is to

A. Provide funds for long-term financing
B. Provide funds short-term financing
C. Stabilize the value of the local currency
D. Stabilize domestic prices