WAEC Commerce 2015 Theory question 103

(a) Any five: accept deposits; grant loans and overdrafts; provide means of payment (cheques, transfers, cards); safe custody of valuables; foreign exchange services/letters of credit; discount bills of exchange; give financial advice; act as agents (pay bills, buy shares) for customers; electronic banking.
(b) Any five, explained: bank rate – raising it makes loans dearer and reduces lending; open market operations – selling/buying government securities to reduce/increase bank cash; liquidity (cash) ratio – fixing the proportion of deposits banks must keep in liquid form; special deposits – requiring banks to deposit extra funds with it; selective credit control/directives – telling banks which sectors to lend to; credit ceilings; moral suasion – persuading banks to follow its policy.

Each control tool should say how it changes banks' ability to lend.