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JAMB Economics 1983 Question 22

Question 22

Financial Institutions

The supply of loanable funds is significantly influenced by

  1. A.commercial banks
  2. B.mortgage banks
  3. C.financial intermediaries
  4. D.the Central Bank
  5. E.insurance companies.
Show the answer and explanation

Answer: D (the Central Bank)

Explanation

The Central Bank controls the money supply and the lending capacity of all banks, so it has the biggest influence on loanable funds.