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GCE Economics 1989 Question 19

Question 19

Financial Institutions

The clearing house of all commercial banks in Nigeria is the

  1. A.General Post Office
  2. B.Bank for Commerce and Industry
  3. C.Nigerian Industrial Development Bank
  4. D.Mortgage Bank
  5. E.Central Bank.
Show the answer and explanation

Answer: E (Central Bank.)

Explanation

Commercial banks settle their cheque claims on each other through accounts at the Central Bank, which acts as the clearing house.