(a) Describe to Kola a recruit in your office, the steps he may take to open a current account.
(b) Outline four functions of the Central Bank.
Explanation
(a) The following steps may be taken to open a current account:
(i) An application is to be made to the bank.
(ii) He has to get somebody (preferably an old customer of the bank) to recommend him.
(iii) Other forms from the bank solicit information on him would be filled.
(iv) When the formalities are completed, he will be issued with a paying-in – slips book.
(v) He makes an initial deposit.
(vi) He is issued an account number.
(vii) He is given a cheque book.
(viii) He submits a passport photograph.
(b) Functions of the Central Bank are:
(i) It is a bank to the government.
(ii) It issues currency note
(iii) It controls the foreign exchange transactions of a country.
(iv) It maintains accounts for all the other banks in the country
(v) It serves as a clearinghouse for other banks.
(vi) It advances money to the government.
(vii) It is a lender of last resort to the banking system.
(viii) It advises the government on monetary matters.
(ix) It manages the national debt.
(x) It formula rules and regulations guiding banking activities in the country.
(xi) It maintains accounts for all the other banks in the country