Question # 1

State Bank of Pakistan Act is

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1932

1962

1984

1997

Important functions of a central bank:

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To issue currency notes

To provide banking facilities to government

To advise commercial banks

All of the above

The central bank works under the rules framed by:

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Government

People

Different banks

All of the above

When was the first central bank of sub-continent established:

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1635

1732

1835

1935

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

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Direct action

Moral persuation

Change in reserve ration

Open market operation

Scheduled Bank Can be registered under SBP Act.

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1956 Sec. 38 (1)

1957 Sec. 37 (1)

1956 Sec. 137 (1)

1956 Sec. 43(1)

Scheduled Banks can keep his totl assets outsinde the country.

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80%

60%

40%

20%

Centrak Bank Act as Lender of Last Resort to.

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Scheduled Bank

Foreign Bank

Non-Sheduled bank

All the above

Which is the quantitative method of credit control

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Change in reserve ratio

Change in margin requirement

Selective control

Publicity

Which principle is followed by central bank to issue currency notes

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Currency principle

Banking principle

Both principle

None of the above

Which function does a central bank not perform

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Credit creation

Advancing loans

Lender of last resort

Banker of the public

Non -Scheduled banks are formed under.

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Sole trader ship

Firm

Joint Stock Co.

Co-operative society Act

What are the objectives of monetary policy

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Stability in price

Exchange stability

Stability in capital market

All of the above

What is meant by margin requirement

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To advance loan less than the value of security

To give less amount as interest than the amount of loan

To advance more loan than the value of security

To advance loan equal to the value of security

It is necessary for scheduled bank to.

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Obey SBP

Submit report to SBP

Get the Book checked

All the above

What is the purpose of monetary policy

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To control banking system

To control supply of money

To control foreign exchange

To control stock market

Credit money in the country is controlled by

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Central bank

Commercial bank

Industrial bank

Agricultural bank

The transmission of following is stopped due to clearing house:

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Credit money

Metallic money

Cash money

All of the above

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

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5%

10%

30%

100%

Modern central banking system started in

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18th Century

19th Century

20th Century

None of these

In case of inflation in the country, the rate of margin is:

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Increased

Reduced

Waived

All of the above

Can open new branch without the consent of Centrla Branch.

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Scheduled Bank

State Bank of Pakistan

Non -Scheduled Bank

Bank of England

What is the objective of clearing house

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To control credit money

To clear the transactions of different banks

Training of banking staff

Re-discounting of bills

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