WAEC Economics 1988 Theory question 107

(a) Liquidity ratio: the proportion of a commercial bank's deposits that it must keep in cash and liquid assets (cash, call money, treasury bills). Fixed by the central bank; raising it reduces banks' ability to lend.
(b) Fixed deposits (time deposits): money kept with a bank for a fixed period; earns a higher interest rate; cannot be withdrawn by cheque and normally needs notice or loses interest if withdrawn early.
(c) Money market: the market for short-term loans and funds (usually under one year); dealers include the central bank, commercial and merchant banks, discount houses; instruments include treasury bills, call money, commercial bills and certificates of deposit.

Two or three clear facts per note.