Commercial Banks - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 1990

The basic purpose of imposing legal reserve requirements on commercial bank is to?

A. Assure the profitability of commercial banks
B. Provide a device through which credit creation by banks can be controlled
C. Provide a proper ratio between earning and non-earning bank assets
D. Provide the Central Bank with working capital

Question 17:

• JAMB 1990

Which of the following is a liability of a commercial bank?

A. Deposits in bank
B. Loans made by the bank to individuals
C. Loans made by the bank to other banks
D. Bonds purchased by the bank

Question 18:

• JAMB 1998

If the reserve requirement for commercial banking in Nigeria were 30%, a commercial bank which receives an initial cash deposit of N3000 is in a position to lend out?

A. N9,000
B. N3,330
C. N2,770
D. N2,100

Question 19:

• 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

Question 20:

• JAMB 2005

The savings deposit in a commercial bank is called

A. Capital
B. Fund
C. Near
D. Money
E. Call money