15 Questions
What is a core responsibility of the Central Bank of Nigeria?
Issuing legal tender currency notes and coins
Which organization is responsible for insuring all deposit liabilities of licensed banks in Nigeria?
Nigerian Deposit Insurance Corporation (NDIC)
What is one of the reasons for the regulation of the Financial Services Industry?
Maintaining stability in the economy
What does the Nigerian Deposit Insurance Corporation (NDIC) aim to do in case of imminent or actual financial difficulties of banks?
Guarantee payments to depositors
What is one of the responsibilities of every Central Bank, including the Central Bank of Nigeria?
Safeguarding the international value of the legal tender currency
Why is it important for financial intermediaries to maintain depositors' confidence?
To prevent loan repayment defaults
What is the main purpose of the Nigeria Deposit Insurance Corporation (NDIC)?
To protect depositors' interests
Why do banks need to be regulated?
To ensure prudent management and avoid overextension
What is the primary role of the government in enhancing confidence in the banking industry?
Establishing a deposit protection scheme
Why are all activities of banks regulated?
To ensure proper management and avoid overextension
What is one of the main reasons for government regulations subjecting banks to certain requirements, restrictions, and guidelines?
To uphold the soundness and integrity of the financial system
What is the primary responsibility of the Nigerian Deposit Insurance Corporation (NDIC)?
Guaranteeing payments to depositors in case of imminent or actual suspension of payments
What is one of the core responsibilities of a Central Bank, such as the Central Bank of Nigeria?
Safeguarding the international value of the legal tender currency
In case of imminent or actual financial difficulties of banks, what does the Nigerian Deposit Insurance Corporation (NDIC) aim to do?
Engender confidence in the Nigerian banking system
What are some responsibilities of Central Banks with regard to supervising and regulating banks and other Financial Institutions?
Promoting an efficient Clearing and Payment system
Explore the challenges faced by financial intermediaries in maintaining depositors' confidence and assessing borrowers' credit worthiness. Understand the importance of ensuring that banks are perceived as safe places to deposit money.
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