If the reserve requirement for commercial banking in Nigeria were 30%, a commercial bank which receives an initial cash deposit of N3000 is in a position to...

Assessment: JAMB UTME - Economics - 1998 Subject: Economics

Question 1 Report

If the reserve requirement for commercial banking in Nigeria were 30%, a commercial bank which receives an initial cash deposit of N3000 is in a position to lend out?
Answer Details
The reserve requirement is the percentage of deposits that a commercial bank is required to hold in reserve with the Central Bank of Nigeria. In this case, the reserve requirement is 30%, which means that the bank must hold 30% of the N3000 deposit in reserve, or N900. Therefore, the amount of funds that the bank has available to lend out is N3000 - N900 = N2100. So the correct answer is N2,100.
Read lesson note on National Income (WAEC)
Read lesson note on Banking (JAMB)
Read lesson note on The Theory Of Price Determination (JAMB)
View Answer

Related Questions

1

In the diagram above, DoDo is the original demand curve, SoSo is the original supply curve, D1D1 is the new demand curve. What is the new equilibrium quantity?
2

Population Statistics of a Country In 1990, the difference between the dependent population and the active population ratio is
3

The shaded triangle in the diagram above is known as
4

The average total cost when output is 200 units in the table aboveis
5

Population Statistics of a Country. The dependency ratio between 1960 and 1990 is
6

In the diagram above, the price P2 in price control situation, is referred to as
7

In the diagram above, profit is maximized at the output level
8

In the diagram above, full employment is indicated by

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning