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JAMB Economics 1985 Question 28

Question 28

Financial Institutions

One of the functions of a commercial bank is that it is

  1. A.responsible for monetary policy
  2. B.responsible for issuing currency notes
  3. C.the lender of last resort
  4. D.the banker of the government
  5. E.a banker of demand and time deposits of customers
Show the answer and explanation

Answer: E (a banker of demand and time deposits of customers)

Explanation

Commercial banks accept current (demand) and savings/time deposits from customers; the other functions belong to the Central Bank.