Financial Institutions - Jamb Economics Past Questions and Answers

Question 41:

• 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 42:

• JAMB 1986

The Nigeria Bank for Commerce and Industry is?

A. A commercial Bank
B. A developmment bank
C. An industrial bank
D. A merchant bank

Question 43:

• JAMB 1986

Which of the following is used by the Central Bank to control the rate of interest?

A. Bill of Exchange
B. Banker's order
C. Fixed deposit account
D. Open market operation

Question 44:

• JAMB 1986

Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?

A. N100.00
B. N1,000.00
C. N9,000.00
D. N10,000.00

Question 45:

• 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