Economic Institution In Nigeria - JSS3 Social studies Past Questions and Answers - page 2
What are some key functions of commercial banks in Nigeria?
Commercial banks in Nigeria perform functions such as facilitating financial transactions, providing loans, and offering payment services.
List three specific roles that the Central Bank of Nigeria plays in the country's economy.
The Central Bank of Nigeria engages in monetary policy formulation, currency issuance, and acts as the government's banker.
How do commercial banks contribute to the growth of the Nigerian economy?
Commercial banks contribute to economic growth by channeling funds through loans, promoting investments, and facilitating financial transactions.
What distinguishes the functions of commercial banks from those of the Central Bank of Nigeria?
Commercial banks primarily focus on facilitating transactions and providing financial services, while the Central Bank formulates and implements monetary policies.
Why is the issuance of national currency a crucial responsibility of the Central Bank of Nigeria?
The Central Bank issues national currency to ensure the integrity and stability of the monetary system in Nigeria.
How does the Central Bank of Nigeria contribute to the stability of the financial system?
The Central Bank regulates and supervises other financial institutions, ensuring stability through effective oversight and adherence to guidelines.
In what ways do commercial banks support international trade in Nigeria?
Commercial banks facilitate international trade by providing foreign exchange services, allowing clients to buy, sell, and transfer foreign currencies.
What role does the Central Bank of Nigeria play in managing the country's foreign exchange reserves?
The Central Bank of Nigeria manages foreign exchange reserves to maintain a stable exchange rate and support the country's international trade.
How do commercial banks channel funds for investments in Nigeria's economy?
Commercial banks extend loans to individuals and businesses, providing the necessary funds for various investments and economic activities.
Why is the regulation of other financial institutions an important function of the Central Bank of Nigeria?
The Central Bank regulates other financial institutions to ensure their stability, adherence to established guidelines, and overall health of the financial system in Nigeria.