Question # 1

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

If a credit is lost, what shuld the holder do.

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Report to employer

report to bank

Reort to insurance co.

All the above

Commercial bank create money.

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Metallic

Credit

Paper

All these

In Pakistan the bank nationalized Act is.

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Act 1956

Act 1932

Act 1962

Act 1974

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

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

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Money Lenders

gold smiths

Money changers

Merchants

In Pakistan before 1974 commercial Banks were formed under.

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Co's act 1932

Co's Act 1913

Co's Act 1984

None 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 of the following is a limitation in credit creation.

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Initial deposit

Use of cheques

Use currency

all of these

To make payments of variable amounts to a stated A/c

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Direct Debit

Standing order

Inter bank transfer

Clearing House system

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 keep the precious articles of public into its custody

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Central bank

Industrial bank

Commercial bank

None of these

Which account is called non operating account.

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Current account

Saving account

Fixed account

BBA account

Because of low Reserve Ratio the credit creation power.

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Increases

Decreases

Constant

Zero

Current account is suitable for

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Capitalists

Salaried persons

Business community

None of the above

The primary function of commercial bank are

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Accepting deposits

Advancing loans

Both a and b

None of these

For commercial baks deposits are.

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Assets

Liabilities

Income

Expense

The relation ship between Cash Reserve and credit creation is.

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No relationship

Direct

Inverse

One way

Commercial bank can be regarded by nature as

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Depository bank

Central bank

Investment bank

None of the above

Commercial bank creates the following Money

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Metallic

Credit

Paper

All the above

Habib Bank Limited was formed on.

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1941

1931

1951

1961

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

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