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5Points Quiz

The ownership structure of the community banks is shared in the following manner

        A.   Community Development Association or town Union; Trade Associations and Indigenes of the community

        B.   Community Development Association or town Union; Local Government and Indigenes of the community

        C.   State Government; Trade Associations and Indigenes of the community

        D.   Community Development Association or town Union; Trade Associations and Indigenes of the community and Non-Indigenes

Answer: A

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Identify which alternative that is not an objective of Community Banks

        A.   To promote the emergence of an effective and integrated national financial system that responds to need of the whole economy especially at the grass root community levels

        B.   To promote rural development by providing financial and banking services and other ancillary facilities to communities inadequately supplied with such facilities

        C.   To promote rural development by providing financial and banking services and other ancillary facilities to communities inadequately supplied with such facilities

        D.   To promote rural development by providing financial and banking services and other ancillary facilities to urban communities inadequately supplied with such facilities

Answer: D

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Which one is not a function of Mortgage Banks

        A.   Train builders on house contruction and land acquisition

        B.   Provide long term loans to individual and estate developers for the purpose of building houses

        C.   Engage in building of houses, which they offer for sale to customers

        D.   Accept deposits from customers in order to encourage savings towards owning a house.

Answer: A

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Which of the following is a primary function of commercial banks?

        A.  Which of the following is a primary function of commercial banks?

        B.   Money transfer services.

        C.   Providing customers with facilities of foreign exchange dealings

        D.   Issuing letters of credit and travellers cheque

Answer: A

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Which of these reasons negates the assertion that Commercial and Merchant Banks have grown to become an indispensible part of our everyday business activities?

        A.  They facilitate business activities

        B.  They contribute to economic growth

        C.   They provide interest-free loans

        D.   Assist in better living standard s of the populace

Answer: C

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As a Banker and Lender of Last Resort to Banks the Central Bank of Nigeria performs the following functions except

        A.   Maintains current account for deposit money banks

        B.   Pay bank depositors of failed banks

        C.   It provides short term loans to banks

        D.   Discounts eligible bill held by banks, where they have exhausted all possible means of acquiring supplementary funds

Answer: B

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As a Banker and Financial Adviser to the Government the Central Bank of Nigeria performs the following functions except

        A.   Finance the government in events of temporary budget shortfall

        B.   Advise the government on the nature, size and timing of issuing debt instruments

        C.   Acts on behalf of government as issuing house for its treasury bills, treasury certificate and other debt instruments

        D.   Establishes banks and other financial institutions in the various states of the federation

Answer: D

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Which one was not a function of the West African Currency Board (WACB)?

        A.   To issue a West African currency

        B.   To ensure a speedy convertibility of the currency with the old silver currency.

        C.   To provide means whereby the colonial government will share from the proceeds of currency issue

        D.  Acceptance of deposits from the banking public

Answer: D

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