Question # 1

Which is the secondary function of a commercial bank.

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Accepting deposits

Advancing loans

Collection of cheques

all of these

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 its customers a commercial bank sells and buys:

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Foreign exchange

Property

Securities

All of the above

A commercial bank keeps less cash reserve if:

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Cheque is used in most of the transactions

Cheque house facilty is available

Rediscounting facility is available

All of the above

The relation ship between Cash Reserve and credit creation is.

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No relationship

Direct

Inverse

One way

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

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Money Lenders

gold smiths

Money changers

Merchants

Commercial bank can be regarded by nature as

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Depository bank

Central bank

Investment bank

None 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

the card which can be used to pay for goods purchased.

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ID card

Credit card

Chrage card

Gurantee card

The commercial banks may be:

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Scheduled

Non-scheduled

Foreign

All of the above

Which affairs of Banks are revealed by articles of Banks.

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Internal

External

Political

Financial

Because of high reserve ratio the credit creation power.

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Constant

Increases

Decreases

Zero

Which one is not the feature of good Banking system.

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Economic development

Inflation

Larger Capital

TYrust of public

Quaid -e- Azam opened his bank account in.

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1940

1945

1957

1987

Cash reserve of commercial Banks includes.

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Cash in hand

Cash with SBP

Balance with other banks

All the above

Which of the following is a limitation in credit creation.

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Initial deposit

Use of cheques

Use currency

all of these

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