Theory question 103
BankingCommerce 2 (answer any five questions)
(a) Describe to Kola a new recruit in your office, the steps he may take to open a current account.
(b) Outline four functions of the Central Bank.
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(a) Steps: go to the bank of his choice and ask to open a current account; obtain and fill the account opening (application) form with his personal details; provide two acceptable referees (usually current account holders) who sign reference forms; submit passport photographs and means of identification (and proof of address/employer's letter); give specimen signatures on the signature card; pay in the minimum initial deposit; after references are confirmed the account is opened, and he receives a cheque book and paying-in slips.
(b) Any four: issues currency notes and coins; banker to the government; bankers' bank – keeps commercial banks' reserves and acts as lender of last resort; controls credit and the money supply (bank rate, open market operations, cash reserve ratio, special deposits); manages the national debt; keeps the country's foreign reserves and manages exchange rates; supervises and regulates banks; provides clearing facilities; advises government on monetary policy.
Give the steps in order in (a).