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JAMB Economics 1991 Question 34

Question 34

Financial Institutions

Banks aid economic expansion and development by

  1. A.being very strict in lending policies
  2. B.mobilizing savings for investment lending
  3. C.paying interest on deposit accounts
  4. D.charging high interest on loans
Show the answer and explanation

Answer: B (mobilizing savings for investment lending)

Explanation

Banks collect the savings of many people and lend them to firms for investment, which helps the economy grow.