Financial Intermediaries: Depositors' Confidence
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Questions and Answers

What is a core responsibility of the Central Bank of Nigeria?

  • Enforcing drug and law enforcement regulations
  • Issuing legal tender currency notes and coins (correct)
  • Regulating the stock market
  • Conducting routine audits of licensed banks
  • Which organization is responsible for insuring all deposit liabilities of licensed banks in Nigeria?

  • Economic & Financial Crimes Commission (EFCC)
  • Securities & Exchange Commission (SEC)
  • National Drug & Law Enforcement Agency (NDLEA)
  • Nigerian Deposit Insurance Corporation (NDIC) (correct)
  • What is one of the reasons for the regulation of the Financial Services Industry?

  • Maintaining stability in the economy (correct)
  • Allowing unrestricted money supply growth
  • Encouraging risky investments
  • Promoting unhealthy competition in the financial markets
  • What does the Nigerian Deposit Insurance Corporation (NDIC) aim to do in case of imminent or actual financial difficulties of banks?

    <p>Guarantee payments to depositors</p> Signup and view all the answers

    What is one of the responsibilities of every Central Bank, including the Central Bank of Nigeria?

    <p>Safeguarding the international value of the legal tender currency</p> Signup and view all the answers

    Why is it important for financial intermediaries to maintain depositors' confidence?

    <p>To prevent loan repayment defaults</p> Signup and view all the answers

    What is the main purpose of the Nigeria Deposit Insurance Corporation (NDIC)?

    <p>To protect depositors' interests</p> Signup and view all the answers

    Why do banks need to be regulated?

    <p>To ensure prudent management and avoid overextension</p> Signup and view all the answers

    What is the primary role of the government in enhancing confidence in the banking industry?

    <p>Establishing a deposit protection scheme</p> Signup and view all the answers

    Why are all activities of banks regulated?

    <p>To ensure proper management and avoid overextension</p> Signup and view all the answers

    What is one of the main reasons for government regulations subjecting banks to certain requirements, restrictions, and guidelines?

    <p>To uphold the soundness and integrity of the financial system</p> Signup and view all the answers

    What is the primary responsibility of the Nigerian Deposit Insurance Corporation (NDIC)?

    <p>Guaranteeing payments to depositors in case of imminent or actual suspension of payments</p> Signup and view all the answers

    What is one of the core responsibilities of a Central Bank, such as the Central Bank of Nigeria?

    <p>Safeguarding the international value of the legal tender currency</p> Signup and view all the answers

    In case of imminent or actual financial difficulties of banks, what does the Nigerian Deposit Insurance Corporation (NDIC) aim to do?

    <p>Engender confidence in the Nigerian banking system</p> Signup and view all the answers

    What are some responsibilities of Central Banks with regard to supervising and regulating banks and other Financial Institutions?

    <p>Promoting an efficient Clearing and Payment system</p> Signup and view all the answers

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