Mention and explain five functions performed by the Central Bank of Nigeria showing how they facilitate commercial activities.
Functions of Central Bank of Nigeria are:
(i) Lender of last resort: Commercial banks borrow money from the central bank in times of difficulty.
(ii) Banker to the government: The central bank acts as an agent and banker to the government. It borrows for the government through treasury bills, etc.
(iii) Bankers' bank: Every commercial bank has an account with the central bank which comprises its legal reserve.
(iv) Issuance of currency: The central bank controls the issue of currency notes and coins and protects the gold reserve.
(v) Maintenance of external reserves: It manages the foreign exchange system of a country.
(vi) Regulation of the economy of the country: The central bank maintains equilibrium balance of payments and prevents inflation and deflation.
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}