passwella.
Menu

JAMB Economics 1993 Question 34

Question 34

Financial Institutions

The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. Calculate the total sum of money the bank can create from the deposit.

  1. A.N100 000
  2. B.N800 000
  3. C.N1 000 000
  4. D.N8 000 000
Show the answer and explanation

Answer: B (N800 000)

Explanation

Total deposits = 80,000 ÷ 0.10 = N800,000.