JAMB Economics 1982 Question 12

Question 12

Financial Institutions

Which one of the following functions of banks in Nigeria is reserved to the Central Bank?

  1. A.Accepting deposits
  2. B.Serving as agents for payments
  3. C.Issuing bank-notes
  4. D.Lending to customers
  5. E.Purchasing or selling of stock exchange securities.
Show the answer and explanation

Answer: C (Issuing bank-notes)

Explanation

Only the Central Bank of Nigeria has the legal right to issue the country's currency notes and coins.