JAMB Economics 2023 Objective — Question 2
Question 2 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.
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Which of the following financial institutions creates more money?
- A. (A) Central bank
- B. (B) Commercial bankCorrect
- C. (C) Mortgage bank
- D. (D) Insurance
Explanation
Commercial banks create money mainly through the deposit and lending (credit creation) process, extending far beyond central bank currency issuance in an economy's day-to-day money creation.
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