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 (C)</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 (C)</p> Signup and view all the answers

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

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

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

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

Why do banks need to be regulated?

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

Why are all activities of banks regulated?

<p>To ensure proper management and avoid overextension (C)</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 (C)</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 (B)</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 (D)</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 (A)</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 (D)</p> Signup and view all the answers

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