Question # 1

Polymer Currency includes

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Debit card

ATM card

Credit card

All of these

Commercial bank create money.

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Metallic

Credit

Paper

All these

The documents which present a summary and balance of accounts of an A/C holder in bank.

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Balance sheet

Pass book

Prospectus

Bank Staement

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

Exchange banks are commonly known as.

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Foreign bank

Central bank

Consortium Bank

None of these

Why commercial banks keep a certain amount of money as reserve

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Meeting the requirements of customers

Meeting the requirements of central bank

Acquiring the satisfaction of having cash

Expanding the banking business

The life blood of acomemrcial bank.

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Deposits

With drawals

Liabilities

All these

Which of the following is not an example of plastic money

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Debit card

ATM card

Currency notes

Credit card

Commercial bank creates credit

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By discounting of bills

By investment

By advancing loans

All of the above

The loans on which high rate of interest is charged :

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Medium term loans

Long term loans

Short term loans

Demand loans

If a credit card is lost, what should the holder do.

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Report to employer

Report to bank

Report to insurance co.

All the above

In Pakistan the bank nationalized Act is.

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Act 1956

Act 1932

Act 1962

Act 1974

Present commercial Banks are teh Developed form of the business of.

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Money Lenders

gold smiths

Money changers

Merchants

To make regular payments of a fixed amount to a stated A/c

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Direct Debit

Standing order

Inter bank transfer

All of these

The kind of loan according to issue

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Cash credit

Discounting of bill

Mortgage loan

All of the above

The relation ship between Cash Reserve and credit creation is.

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No relationship

Direct

Inverse

One way

Increase in ratio of cash reserve of scheduled banks.

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Increase of credit creation

Stop credit creation

Decreased in credit creation

None of these

Which of the following is meant for presenting a summary and balance of accounts of bank customers

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Bank statement

Balance sheet

Pass book

Prospectus

Which type of loan is advanced by commercial banks for meeting day-to-day requirements:

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Short term loan

Medium term loan

Long term loan

All of the above

Which is the Primary functionof a commercial bank.

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Issue Notes

Accepting Deposits

Credit creation

None of these

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

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

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