Post Utme Babcock University 2025 Commerce Question 23

Practice objective / multiple choice question 23 from the 2025 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2025 Commerce Objective / Multiple Choice

Question 23 POST_UTME_BABCOCK_UNIVERSITY • 2025 • COMMERCE • objective

A bank's cash reserve ratio is the percentage of deposits that must be held in reserve. Which of the following is a benefit of a high cash reserve ratio?

Answer Options

A. It allows the bank to lend more money to customers.

Correct Answer B. It reduces the risk of bank runs.

C. It increases the bank's profitability.

D. It allows the bank to invest in other assets.

Correct Answer

Correct Option:

It reduces the risk of bank runs.

About This Question

This is Post Utme Babcock University 2025 Commerce Question 23. It is one of the objective questions from the 2025 Post Utme Babcock University Commerce examination.

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