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

Important functions of a central bank:

Question # 2

State Bank of Pakistan Act is

Question # 3

What is the objective of clearing house

Question # 4

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

Question # 5

The central bank works under the rules framed by:

Question # 6

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

Question # 7

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

Question # 8

Which method or methods are prevailing in Pakistan for issuing notes

Question # 9

The external value of local currency is stablized through:

Question # 10

Which function does a central bank not perform

Question # 11

In the Presence of Clearing House Scheduled Banks keeps.

Question # 12

What are the objectives of monetary policy

Question # 13

What is the purpose of monetary policy

Question # 14

Scheduled Banks are registred under state bank act.

Question # 15

Modern central banking system started in

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

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Sr.# Question Answer
1 Which term is used in connection with monetary policy
A. Bank rate
B. Exchange rate
C. Wage rate
D. Market rate
2 Central bank is owned by
A. Public
B. Government
C. Commercial baks
D. All of the above
3 Scheduled Banks are registred under state bank act.
A. 1956
B. 1984
C. 1962
D. 1932
4 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%
5 Qualitative methods of monetary policy do not include:
A. Direct actions
B. Publicity
C. Bank rate policy
D. Moral pursuation
6 If credit money is controlled by the sale and purchase of government securities, it is called
A. Direct action
B. Moral persuation
C. Change in reserve ration
D. Open market operation
7 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
8 Scheduled Banks can keep his totl assets outsinde the country.
A. 80%
B. 60%
C. 40%
D. 20%
9 State Bank of Pakistan Act is
A. 1932
B. 1962
C. 1984
D. 1997
10 The central bank works under the rules framed by:
A. Government
B. People
C. Different banks
D. All of the above
11 Under which Section Scheduled Bank can open new branch.
A. Section 38
B. Section 39
C. Section 40
D. Section 41
12 If the quatity of money in circulation increases then this situation is called:
A. Inflation
B. Deflation
C. Money market
D. All of the above
13 In case of inflation in the country, the rate of margin is:
A. Increased
B. Reduced
C. Waived
D. All of the above
14 Participation term certificates are issued in place of.
A. Shares
B. Debentures
C. NIT Units
D. All these
15 What is the purpose of monetary policy
A. To control banking system
B. To control supply of money
C. To control foreign exchange
D. To control stock market

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