Deposit Money Banks And The Creation Of Money Jamb Economics Past Questions
Question 6
The capital market provides business firms with the avenue to
- A. lease capital equipment
- B. obtain long-term funds
- C. obtain short-term funds
- D. purchase capital equipment
Question 7
The primary function of non-bank financial institutions is to
- A. manage investment portfolios for government
- B. mobilize savings for investment
- C. grant loans to banks
- D. receive deposits from banks
Question 8
The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. calculate the sum of money the bank can create from the deposit?
- A. N 100 000
- B. N 800 000
- C. N 1000 000
- D. N 8000 000
Question 9
Banks aid economic expansion and development by?
- A. being very strict in lending policies
- B. mobilizing savings for investment lending
- C. paying interest on deposit accounts
- D. charging high interest on loans
Question 10
Banks can create more money by?
- A. increasing its cash ratio with the Central Bank
- B. issuing more banks cheques
- C. accepting more deposits from customers
- D. lending out money from customers deposits
