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Friday, 14 August 2026
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Economics Past Questions and Answers

Topic: Deposit money banks and the creation of money

Jamb Economics Questions - Deposit money banks and the creation of money

Question 1:
The term "Money at call and short notice" in a bank's assets represents the bank's loans to______
  • A Industry and commerce
  • B Overseas central banks
  • C The capital market
  • D The money markets
View Answer & Explanation
Question 2:
Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%
  • A 700.00
  • B 600.00
  • C 500.00
  • D 400.00
View Answer & Explanation
Question 3:
The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. calculate the sum of money the bank can create from the deposit?
  • A N 100 000
  • B N 800 000
  • C N 1000 000
  • D N 8000 000
View Answer & Explanation