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WAEC Economics 2002 Question 36

Question 36

Financial Institutions

Which of the following is a function of merchant banks?

  1. A.Minting of coins
  2. B.Preparation of government budget
  3. C.Keeping watch on external reserves of the country
  4. D.Acting as acceptance houses
Show the answer and explanation

Answer: D (Acting as acceptance houses)

Explanation

Merchant banks accept (guarantee) bills of exchange, acting as acceptance houses.