Question # 1

What kind of power does commercial bank possess regarding credit creation

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Unlimited power

Limited power

No power

All the above are possible

For commercial banks deposits are.

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Assets

Liabilities

Income

Expense

Formula for calculating total credit creation:

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New deposit x 1/Reserve ratio

New deposit x Reserve ratio/1

Reserve ratio x 1/New deposit

None of the above

The kind of loan according to issue

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Cash credit

Discounting of bill

Mortgage loan

All of the above

Which of the followig is not an example of Plastic money.

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Debit card

ATM card

Credit card

Currency notes

Which bank does accept the deposits from public

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Commercial bank

Central bank

Foreign exchange bank

All the above

Commercial bank create money.

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Metallic

Credit

Paper

All these

The important (basic) kinds of accounts opened in commercial banks are:

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Two

Three

Four

countless

Which account is called non operating account.

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Current account

Saving account

Fixed account

BBA account

Credit card payments are considered.

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Cash payments

Credit payments

Both these

None of these

Which of the following is a limitation in credit creation

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Initial deposit

Use of cheques

Use of currency

All of these

Which bank does discount the bills of public

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Commercial bank

Agricultural bank

Industrial bank

All of the above

Which one is not the feature of good Banking system.

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Economic development

Inflation

Larger Capital

TYrust of public

Which bank does keep the precious articles of public into its custody

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Central bank

Industrial bank

Commercial bank

None of these

For commercial banks " Advancing loans' are.

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Assets

Liabilities

Expenses

All of these

Polymer Currency includes

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Debit card

ATM card

Credit card

All of these

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Principles of Banking ICOM Part 2 English Medium Chapter 2 Online Test MCQs With Answers

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