JAMB and WAEC Economics questions

745 questions with answers and explanations. Tap an option to check yourself.

1. Question 181· Financial institutions· WAEC

   The Nigerian Exchange (NGX) deals mainly in

   • Alending to farmers
   • Bprinting currency
   • Cissuing insurance
   • Dbuying and selling shares and bonds

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   Explanation and discussion

2. Question 182· Financial institutions· JAMB

   A main function of commercial banks is to

   • Aaccept deposits and grant loans
   • Bissue currency
   • Cfix exchange rates
   • Dcollect taxes

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   Explanation and discussion

3. Question 183· Financial institutions· WAEC

   The Central Bank of Nigeria is the

   • Abank that lends to traders
   • Bagent of foreign banks
   • Cowner of all commercial banks
   • Dbanker to the government

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   Explanation and discussion

4. Question 184· Financial institutions· WAEC

   If the cash reserve ratio is 10% and a bank receives a deposit of ₦100,000, the maximum total deposits that can be created is

   • A₦100,000
   • B₦1,000,000
   • C₦10,000
   • D₦900,000

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   Explanation and discussion

5. Question 185· Financial institutions· WAEC

   The Nigerian Exchange (stock exchange) is a market for

   • Ashort-term bills only
   • Bforeign currency only
   • Cagricultural produce
   • Dlong-term securities such as shares

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   Explanation and discussion

6. Question 186· Financial institutions· WAEC

   A commercial bank accepts deposits and

   • Acontrols monetary policy
   • Bissues currency
   • Cgrants loans to customers
   • Dfixes exchange rates

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   Explanation and discussion

7. Question 187· Financial institutions· JAMB

   Mortgage institutions provide loans mainly for

   • Abuying shares
   • Bimporting goods
   • Cpaying salaries
   • Dbuying or building houses

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   Explanation and discussion

8. Question 188· Financial institutions· WAEC

   To reduce inflation, the Central Bank is likely to

   • Areduce reserve requirements
   • Blower interest rates
   • Cbuy government securities
   • Draise the monetary policy rate

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   Explanation and discussion

9. Question 189· Financial institutions· JAMB

   The money market deals in

   • Aforeign land
   • Blong-term shares only
   • Cshort-term funds
   • Dgoods

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   Explanation and discussion

10. Question 190· Financial institutions· JAMB

    To reduce the money supply, the Central Bank may

    • Aprint more money
    • Blower the monetary policy rate
    • Creduce the cash reserve ratio
    • Dsell government securities in the open market

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    Explanation and discussion

11. Question 191· Financial institutions· JAMB

    Insurance companies are part of the financial system because they

    • Amobilise savings through premiums and invest them
    • Bprint money
    • Cfix exchange rates
    • Dcollect taxes

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    Explanation and discussion

12. Question 192· Financial institutions· WAEC

    A development bank provides

    • Aforeign exchange only
    • Bonly current accounts
    • Cinsurance
    • Dlong-term loans for development projects

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    Explanation and discussion

13. Question 193· Financial institutions· JAMB

    The capital market deals in

    • Aconsumer goods
    • Bshort-term loans only
    • Cforeign exchange only
    • Dlong-term funds

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    Explanation and discussion

14. Question 194· Financial institutions· WAEC

    Which institution is the lender of last resort?

    • Athe stock exchange
    • Ba commercial bank
    • Ca mortgage bank
    • Dthe Central Bank

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    Explanation and discussion

15. Question 195· Financial institutions· JAMB

    If the cash reserve ratio is 20%, a new deposit of ₦10,000 can create total deposits of up to

    • A₦12,000
    • B₦8,000
    • C₦50,000
    • D₦200,000

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    Explanation and discussion

16. Question 196· Financial institutions· WAEC

    Commercial banks create credit because

    • Athey sell shares
    • Bthey print money
    • Cgovernment gives them money
    • Donly a fraction of deposits is kept as reserves

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    Explanation and discussion

17. Question 197· Financial institutions· JAMB

    A commercial bank receives a deposit of ₦10,000 and the cash reserve ratio is 10%. The maximum total deposits that can be created in the banking system is

    • A₦1,000
    • B₦90,000
    • C₦10,000
    • D₦100,000

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    Explanation and discussion

18. Question 198· Financial institutions· JAMB

    The Nigeria Deposit Insurance Corporation (NDIC) protects

    • Abank depositors
    • Bshareholders
    • Cborrowers
    • Dimporters

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    Explanation and discussion

19. Question 199· Financial institutions· JAMB

    Development banks provide mainly

    • Along-term loans for agriculture and industry
    • Boverdrafts to individuals
    • Cforeign exchange
    • Dinsurance

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    Explanation and discussion

20. Question 200· Financial institutions· JAMB

    Treasury bills are

    • Ainsurance policies
    • Blong-term company shares
    • Cbank notes
    • Dshort-term government securities

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    Explanation and discussion