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	Increase in ratio of cash reserve of scheduled banks.	A. Increase of credit creation B. Stop credit creation C. Decreased in credit creation D. None of these
2	The higer the cash reserve ratio.	A. Credit creation zero B. Credit creation constant C. Higher the credit creation D. Lower the credit creation
3	The life blood of acomemrcial bank.	A. Deposits B. With drawals C. Liabilities D. All these
4	The kind of loan according to issue	A. Cash credit B. Discounting of bill C. Mortgage loan D. All of the above
5	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
6	The loans on which high rate of interest is charged :	A. Medium term loans B. Long term loans C. Short term loans D. Demand loans
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	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
9	Commercial bank creates the following Money	A. Metallic B. Credit C. Paper D. All the above
10	Commercial bank can be regarded by nature as	A. Depository bank B. Central bank C. Investment bank D. None of the above