5a. cheque - A cheque is defined by thebill of exchange act of 1882 as "a bill of exchange drawn on a banker on a banker payable on demand . 5b. (i) current account- money can be withdrawn frequently. holders of interest are not entitled to interest payment of commission is made by the customers to the bank (ii) saving account- money can only be withdrawn occasionally. it attracts a favourable rate of interest. holders are issued with passbook. (iii) fix deposit account- money is deposited for a specific period it attracts higher interest rate. notice of seven days must be given withdrawal. (6a)- provision of long term loans for capital project. -they help to implement government financial policies. -they conduct extensive study on the industrial sector in order to determine the viability of industries in a country. -they advise both the government and industrialists on the surest way of developing a nation. - they contribute to man power development by making funds available to man power training institutions. (6b)(i) issuing of currency: the bank is the sole authority empowered by law toissue the nations all form of currency. (ii) it controls the foreign exchange reserves: it issues foreign exchange to those who are in need of it, and as a result it knows when excess foreign exchange. (iii)it advises the government:because of it pivotal position,they advises on financial situation (iv) federal government banker:they keep the nation mopney (v) As a governmental agent:they makepayment and receive money from government.
Posted on: Thu, 05 Sep 2013 10:10:24 +0000
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