Commercial Banks - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1985

One of the functions of the commercial banks is that it is?

A. Responsible for monetary policy
B. Responsible for issuing currency notes
C. The lender of last resort
D. The banker of the government
E. A banker of demand and time deposits of customers

Question 12:

• JAMB 1986

The most important economic characteristic differentiating commercial banks from other financial institutions is their?

A. Function as a safe and profitable store place for savings
B. Role in financing balance of payment deficits
C. Status as an intermediary between savers and borrowers
D. Ability to create and destory money

Question 13:

• JAMB 1988

Restriction on credit creation by commercial banks can be effected through?

A. An overdraft
B. Loans and advances
C. Demand deposits
D. Liquidity ratio

Question 14:

• JAMB 1988

Which of the following factors enhances the ability of commercial banks to create money?

A. Reduction in the reserve ratio
B. Leakage of cash out of banking system
C. Excess of reserves
D. Insistence on collateral security

Question 15:

• JAMB 1989

Commercial bank reserves at the Central Bank have the effect of?

A. Controlling credit and money supply
B. Discouraging banking operations
C. Advancing trade prospects
D. Reducing bank frauds