12th class Principle of Banking chapter 4 online mcq test with answers for ICom part 2 Principle of Banking Chapter 4 (Central Bank)

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Sr.#	Question	Answer
1	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
2	Important functions of a central bank:	A. To issue currency notes B. To provide banking facilities to government C. To advise commercial banks D. All of the above
3	What are the objectives of monetary policy	A. Stability in price B. Exchange stability C. Stability in capital market D. All of the above
4	In the Presence of Clearing House Scheduled Banks keeps.	A. Less Cash Reserve B. More Cash Reserve C. No cash reserve D. Fixed cash reserved
5	In case of inflation in the country, the rate of margin is:	A. Increased B. Reduced C. Waived D. All of the above
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	Can open new branch without the consent of Centrla Branch.	A. Scheduled Bank B. State Bank of Pakistan C. Non -Scheduled Bank D. Bank of England
8	Which term is used in connection with monetary policy	A. Bank rate B. Exchange rate C. Wage rate D. Market rate
9	Non -Scheduled banks are formed under.	A. Sole trader ship B. Firm C. Joint Stock Co. D. Co-operative society Act
10	Central Bank provide the facility to Scheduled Banks.	A. Rediscounting Bills B. Clearing House C. Transfer of Money D. All the above