JAMB Commerce 2002 Question 43

Question 43

Banking

The principal objectives of the Central Bank of Nigeria can be classified broadly into

  1. A.bankers' bank, lender of last resort and issuance of currency
  2. B.service, currency management and financial intermediation
  3. C.banking services, foreign exchange operations and open markets operations
  4. D.service, monetary policy and developmental functions.
Show the answer and explanation

Answer: A (bankers' bank, lender of last resort and issuance of currency)

Explanation

The CBN acts as bankers' bank and lender of last resort, and it issues the currency.