COMMERCE QUIZ

Which of the following services is rendered by Central Bank?

• Provision of brokerage services

• Safe keeping of cash and other valuables

• Discounting bills of exchange

• Issuing currency notes

Which is the banker of all commercial banks in the country?

• CBN

• FMBN

• BOI

• UBA

Which of the following is NOT a function of the Central Bank?

• Bankers bank

• Government bank

• Printing of currency

• Servicing of national debt

What is NOT a means of Central Bank’s controlling the credit policy of commercial banks?

• Banker’s bank

• Bank rate

• Funding operations

• Open market operations

When the Central Bank increases the bank rate its aim is to?

• Reduce the volume of public borrowing

• Increase government revenue

• Encourage bank to lend only to government

• Discourage the public from saving.

If a customer is allowed N1000 overdraft and he receives a bank statement showing an overdraft of N100. This means that he?

• Cannot draw more cheques

• Is owed N100 by the bank

• Owes the bank at least N900

• Owes the bank N100 only.

Which of the following is a loan, carrying a fixed rate of interest and secured on the assets of a company?

• Mortgage debenture

• Naked debentures

• Preference shares

• Deferred shares

To a commercial bank, deposits are?

• Liabilities

• Assets

• Capital

• Cash at hand

Discounting a bill of exchange means the bill is?

• Cashed over the counter

• Sold on the stock exchange

• Bought for less than its face value

• Sold to the highest bidder

Banks issue cheque books to customers holding_________ account?

• Deposit

• Fixed deposit

• Current

• Savings