Post Utme Christopher University 2019 Commerce Question 4

Practice objective / multiple choice question 4 from the 2019 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2019 Commerce Objective / Multiple Choice
Question 4 POST_UTME_CHRISTOPHER_UNIVERSITY • 2019 • COMMERCE • objective

A bank's cash reserve ratio (CRR) is the percentage of customer deposits that it must hold in reserve. Which of the following is a key purpose of the CRR?

Answer Options

A. To reduce the risk of bank runs and maintain financial stability.
B. To increase the bank's lending capacity and stimulate economic growth.
Correct Answer C. To ensure that banks maintain a minimum level of liquidity and meet their payment obligations.
D. To reduce the bank's operating costs and improve its profitability.
Correct Answer
C
Correct Option:
To ensure that banks maintain a minimum level of liquidity and meet their payment obligations.

About This Question

This is Post Utme Christopher University 2019 Commerce Question 4. It is one of the objective questions from the 2019 Post Utme Christopher University Commerce examination.

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