- 20 Marks
EIB – OCT 2022 – L1 – Q6 – Banking Functions and Reserves
Functions of banks, effects of rate changes, non-bank roles, and reserve calculations.
Question
(a) Mention any four traditional functions of a commercial bank. (4 marks)
(b) Mention any two effects of a bank rate changes. (4 marks(c) What are the main functions
(c) What are the main functions of the non-bank financial institutions? (4 marks
(d(d) A commercial bank has reserves totaling GHC 40000 and debt liabilities of GHC 100,000. If the reserve requirement is $
i) Calculate the bank’s cash ratio. (4 marks)
ii) How much is the bank required to hold in reserve? (4 marks (Total marks:20)
Find Related Questions by Tags, levels, etc.
- Tags: bank rate effects, Cash Ratio, commercial bank functions, non-bank institutions, Reserves
- Level: Level 1
- Topic: Banks and other Financial Institutions
- Series: OCT 2022
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