Post Utme Futo 2020 Commerce Question 13

Practice objective / multiple choice question 13 from the 2020 Post Utme Futo Commerce examination.

Post Utme Futo 2020 Commerce Objective / Multiple Choice

Question 13 POST_UTME_FUTO • 2020 • COMMERCE • objective

A bank's cash reserve ratio is the percentage of deposits that it must hold in reserve. What is the primary purpose of this ratio?

Correct Answer A. To ensure liquidity

B. To regulate credit expansion

C. To prevent bank runs

D. To maintain price stability

Correct Answer

Correct Option:

To ensure liquidity

This is Post Utme Futo 2020 Commerce Question 13. It is one of the objective questions from the 2020 Post Utme Futo Commerce examination.

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