Central bank - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 2004

The role of the Central Bank in the economic development of Nigeria is to

A. Give short-and medium-term loans to the public
B. Give financial and technical advice to customers
C. Use cheques and bankdrafts to faciliate business transactions
D. Maintain a stable price system

Question 17:

• JAMB 2006

If the Central Bank of Nigeria reduces the bank rate, this will cause

A. Money supply to increase
B. Commercial banks to reduce lending
C. Commercial banks to merge
D. Money supply to reduce

Question 18:

• 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 19:

• 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 20:

• JAMB 2013

Which of the following is used by the Central Bank of Nigeria to control inflation?

A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate