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

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Sr.#	Question	Answer
1	Which is the Primary functionof a commercial bank.	A. Issue Notes B. Accepting Deposits C. Credit creation D. None of these
2	For more credit creation a bank must have.	A. More demand deposits B. More fixed deposits C. More time deposited D. All of these
3	Which type of loan is advanced by commercial banks for meeting day-to-day requirements:	A. Short term loan B. Medium term loan C. Long term loan D. All of the above
4	Which of the following is not an example of plastic money	A. Debit card B. ATM card C. Currency notes D. Credit card
5	Because of low Reserve Ratio the credit creation power.	A. Increases B. Decreases C. Constant D. Zero
6	Which bank does accept the deposits from public	A. Commercial bank B. Central bank C. Foreign exchange bank D. All the above
7	Which of the following is a limitation in credit creation.	A. Initial deposit B. Use of cheques C. Use currency D. all of these
8	Which affairs of Banks are revealed by articles of Banks.	A. Internal B. External C. Political D. Financial
9	The current account nd saving account is also called	A. Sight deposits B. Chequing account C. Demand deposits D. All of these
10	Which one is not the feature of good Banking system.	A. Economic development B. Inflation C. Larger Capital D. TYrust of public