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JAMB Economics 1991 Question 30

Question 30

Financial Institutions

One of the functions of Development Banks is to

  1. A.mint money for the development of the economy
  2. B.provide short-term loans to commercial banks
  3. C.provide medium and long-term finance for development of the banking system
  4. D.provide medium and long-term finance for the development of the economy
Show the answer and explanation

Answer: D (provide medium and long-term finance for the development of the economy)

Explanation

Development banks lend for long periods to agriculture, industry and other productive projects that commercial banks avoid.