Wednesday, May 22, 2019

ASSIGNMENT ON BFN 122/BAM 124/GNS 125- PRINCIPLES OF ECONOMICS 2


Given that the cash reserve of the commercial banks is 10%, if Mr. Owonikoko Jamiu deposit N250,000 with G.T. Bank and GT Bank gave Mr. Alashela Kojumote a loan of  N225, 000 which he later deposited in his Zenith Bank.The zenith Bank gave Mrs.
Banuso Ojutonsoro a loan of N202,500 which she deposited into her First Bank  and First Bank later gave a bank draft of N182,250 as a loan to Mr. Aiyegbajeje Emiloju which he deposited into EcoBank.
The process continue, as a student of Management and Business Studies complete the table below, show workings and determine: The amount of money which commercial banks have created in form of:
i.                    Deposit
ii.                  Liquidity Ratio
iii.                Loan

b. What are the limitations on commercial Banks’s power in creating credits or
money?             

                                                                BEST OF LUCK!
                               Patriot Odunaro B.J (08038454008)
 If you want to increase your brain visit:
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