Commercial Banks - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 2007

A reduction in the bank rate encourages commercial banks to create money by

A. Decreasing the interest rate
B. Maintaining the interest rate
C. Doubling the interest rate
D. Raising the interest

Question 22:

• 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 23:

• 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