Theory question 103
BankingCommerce 2 (answer five questions)
Mention and explain five functions performed by the Central Bank of Nigeria showing how they facilitate commercial activities
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Any five, each with how it helps commerce: sole issue of currency – provides a uniform, acceptable means of payment; banker to the government – handles government accounts, loans and payments that keep the economy running; banker to commercial banks – holds their reserves and runs the clearing house so cheques are settled quickly; lender of last resort – lends to banks in difficulty, so depositors keep confidence; controls credit and money supply (bank rate, open market operations, reserve and liquidity ratios) – keeps prices stable for traders; manages foreign exchange and external reserves – makes foreign exchange available for imports; supervises and regulates banks – ensures a sound banking system; advises government on economic policy; develops the money and capital markets.
Name each function and link it to trade or business.