Deposit Money Banks And The Creation Of Money Jamb Economics Past Questions
Question 11
In commercial banking, an account from which the customer cannot withdraw money instantly is a?
- A. demand deposit account
- B. time deposit account
- C. special deposit account
- D. savings deposit account
Question 12
Restriction on credit creation by commercial banks can be effected through?
- A. an overdraft
- B. loans and advances
- C. demand deposits
- D. liquidity ratio
Question 13
Commercial bank reserves at the Central Bank have the effect of?
- A. controlling credit and money supply
- B. discouraging banking operations
- C. advancing trade prospects
- D. reducing bank frauds
Question 14
Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%
- A. 700.00
- B. 600.00
- C. 500.00
- D. 400.00
Question 15
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
