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Fin315 > Evolution Of Central Bank > Flashcards

Evolution Of Central Bank Flashcards

1
Q

____ are referred to as dealers in debt?

A

Financial institutions

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2
Q

_____ types of financial institutions?

A

Banking and non banking financial institutions

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3
Q

_____non-banking financial institutions include?

A

Insurance companies, building societies and hire purchase companies

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4
Q

What is the essence of central bank?

A

Discretionary control of the monetary system

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5
Q

The CB possesses _____ in the issuance of legal tender in a country?

A

Monopoly

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6
Q

Central bank carries out its most important function of ________________ ?

A

Formulating and executing monetary policy

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7
Q

Before the central bank was established in __________, there was ________ which was established in ____________

A

July 1st 1959 and WACB 1912

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8
Q

The low economic development in Nigeria under the WACB was attributed to?

A

The board being designed to serve the purpose of our colonial masters

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9
Q

The WACB Was responsible for?

A

The provision, issuance and re-issuance of the west Africa pound notes and coins

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10
Q

The desirability for a Central Bank in Nigeria in the early 50’s led to what ?

A

The appointment of a committee to survey the necessity of a central bank in NG

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11
Q

_______ submitted its report in 1957

A

JB Loyne’s commission

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12
Q

______ submitted its report in 1953

A

JB fisher’s commissions

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13
Q

The World Bank’s Mission submitted its report when?

A

In 1955

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14
Q

Out of the three reports, which was in favour of the establishment of the CBN?

A

JB loynes

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15
Q

JB loynes was?

A

The adviser to the Bank of England

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16
Q

When was the central bank act promulgated?

A

17th march 1958

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17
Q

When did the cbn become fully operational?

A

1st July 1959

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18
Q

The CBN was established by what act?

A

The CBN act of 1958

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19
Q

What is the latest CBN act?

A

CBN act of 1958

20
Q

Where’s the CBN headquarters located?

A

Abuja

21
Q

Who is the current CBN governor?

A

Mr Olayemi Michael Cardoso

22
Q

Who was the former CBN governor?

A

Godwin Emefiele

23
Q

The latest CBN act charges the CBN with what responsibility?

A

Overall control and administration of all monetary and financial sector policies of the federal government

24
Q

How many times has the CBN act been amended?

A

5

25
Q

What are the types of CBN Deputy Goverors?

A

Deputy Gov of:
Operations, financial system stability, economic policy and corporate services

26
Q

The CBN has how many departments?

A

29

27
Q

The CBN is under the supervision of?

A

The Ministry of finance

28
Q

How many branches does the CBN have?

A

36

29
Q

What reserves does the CBN manage or maintain?

A

Foreign Exchange and Gold

30
Q

The CBN Works hand in hand with __________ to manage the debt of Nigeria?

A

Ministry Of Finance

31
Q

What section of the latest CBN act are the objectives spelt out?

A

Section 4

32
Q

According to the latest CBN act, what are the objectives?

A

Issue currency of the economy
Maintenance of external reserves of Nigeria
Provide financial advisory services to the government
Act as a banker to the government
Develop and Control the Nigerian Financial system

33
Q

How many departments does the CBN have?

A

29

34
Q

How does the central bank exert control over commercial banks in Nigeria?

A

Through the Monetary Policy Instruments

35
Q

______ is the opposite of Moral suasion?

A

Directive

36
Q

______ is a compulsory instruction by the central bank to the commercial bank to follow some monetary policies?

A

Directives

37
Q

The appeal for moral suasion is ______?

A

Gentle and Persuasive

38
Q

_______ occurs when the central bank uses a gentle approach to make commercial banks follow some policies

A

Moral suasion

39
Q

Bank rate is the rate which __________ charge on loans to __________?

A

Central banks / commercial banks

40
Q

An increase in bank rate would Lead to?

A

An increase in market rate I.e the rate at which commercial banks charge on loans

41
Q

Another name for cash ratio is?

A

Cash reserves

42
Q

A decrease and increase in cash ratio would have what effects?

A

Increase - would reduce the lending capability of commercial banks
Decrease- opposite

43
Q

______ refers to the buying and selling of securities in the open market?

A

OMO

44
Q

Commercial banks are owned and managed by who?

A

Owned by shareholders
Managed by the board of directors appointed by the shareholders

45
Q

The central bank acts as a _______ between the commercial banks and the government

A

Fin315 (4 decks)

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