12th Class Principle of Banking Online MCQ's Test with Answers for Chapter 4 (Central Bank)

ICOM Part 2 English Medium Principles of Banking Chapter 4 MCQ's Test

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MCQ's Test For Chapter 0 "Principles of Banking Icom Part 2 English Medium Chapter 4 Online Test"

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Principles of Banking Icom Part 2 English Medium Chapter 4 Online Test

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Question # 1

The institution responsible for the contraction and expansion of money in the best interest of general public is called:

Question # 2

Non -Scheduled banks are formed under.

Question # 3

State Bank of Pakistan Act is

Question # 4

Non- Scheduled banks are formed under co-opeative society Act.

Question # 5

Credit money in the country is controlled by

Question # 6

If credit money is controlled by the sale and purchase of government securities, it is called

Question # 7

Non -Scheduled bank menas a bank which is not registred with.

Question # 8

The central bank works under the rules framed by:

Question # 9

Pakistan's central bank was established in:

Question # 10

Scheduled Bank Can be registered under SBP Act.

Question # 11

If the quatity of money in circulation increases then this situation is called:

Question # 12

Which principle is followed by central bank to issue currency notes

Question # 13

What is meant by margin requirement

Question # 14

Important functions of a central bank:

Question # 15

Which method or methods are prevailing in Pakistan for issuing notes

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ICOM Part 2 English Medium Principles of Banking Chapter 4 MCQ's Test

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ICom Part II Principles of Banking (E.M) Chapter 0 Important MCQ's

Sr.# Question Answer
1 Non -Scheduled banks are formed under.
A. Sole trader ship
B. Firm
C. Joint Stock Co.
D. Co-operative society Act
2 What is meant by margin requirement
A. To advance loan less than the value of security
B. To give less amount as interest than the amount of loan
C. To advance more loan than the value of security
D. To advance loan equal to the value of security
3 Scheduled bank is bound to keep with the Country.
A. 80% of Total Assets
B. 60% of Total Assets
C. 40% Total Assets
D. 20% Total Assets
4 Which method or methods are prevailing in Pakistan for issuing notes
A. Fixed Fiduciary System
B. Proportional Reserve System
C. Both a and b
D. None of the these
5 Central bank bank supervises one of the following systems of a country:
A. Provincial
B. Political
C. Economical and financial
D. None of the above
6 Which term is used in connection with monetary policy
A. Bank rate
B. Exchange rate
C. Wage rate
D. Market rate
7 Centrak Bank Act as Lender of Last Resort to.
A. Scheduled Bank
B. Foreign Bank
C. Non-Sheduled bank
D. All the above
8 Ribs Bank of Sweden became central bank in:
A. 1568
B. 1668
C. 1768
D. None of the above
9 Under fixed fiduciary system, if notes are issued in excess of fiduciary limit then how much value of precious metal or foreign exchange is kept as reserve for over issue
A. 5%
B. 10%
C. 30%
D. 100%
10 What is the objective of clearing house
A. To control credit money
B. To clear the transactions of different banks
C. Training of banking staff
D. Re-discounting of bills

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