12th class Principle of Banking chapter 2 online mcq test with answers for ICom part 2 Principle of Banking Chapter 2 (Commercial Bank)

Top Scorers Of Chapter 0 "Principles of Banking ICOM Part 2 English Medium Chapter 2 Online Test" MCQ`s Test

Sr.#	Question	Answer
1	Formula for calculating total credit creation:	A. New deposit x 1/Reserve ratio B. New deposit x Reserve ratio/1 C. Reserve ratio x 1/New deposit D. None of the above
2	Which of the folloiwng is a valid method of receivig payment from debtors.	A. Debit card B. Credit card C. ATM card D. Cash
3	Which of the following is a limitation in credit creation	A. Initial deposit B. Use of cheques C. Use of currency D. All of these
4	If the rate of interest (profit) on the bank deposits is higher then the banks keep:	A. Less cash reserve B. Less margin rate C. More cash reserve D. None of the above
5	Commercial bank create money.	A. Metallic B. Credit C. Paper D. All these
6	Why commercial banks keep a certain amount of money as reserve	A. Meeting the requirements of customers B. Meeting the requirements of central bank C. Acquiring the satisfaction of having cash D. Expanding the banking business
7	Which bank does discount the bills of public	A. Commercial bank B. Agricultural bank C. Industrial bank D. All of the above
8	Pay Order is issued by the bank when the debtor and creditor belongs to.	A. Two different cities B. With in same city C. Two different counties D. All these
9	For commercial banks deposits are.	A. Assets B. Liabilities C. Income D. Expense
10	Because of low Reserve Ratio the credit creation power.	A. Increases B. Decreases C. Constant D. Zero