| 1 |
Demand deposits are |
- A. Bank notes
- B. Money
- C. Considered as near money
- D. Legal money
|
| 2 |
The banks can given loans |
- A. unlimited
- B. equal to deposits
- C. Less then deposite
- D. More then deposite
|
| 3 |
Profit and loss- sharing is and element of this system |
- A. Islamic
- B. Capitalistic
- C. Socialistic
- D. None
|
| 4 |
Cash cannot be obtained from a bank against |
- A. Cross cheque
- B. Order cheque
- C. Bearer cheque
- D. Traveller cheque
|
| 5 |
Commercial banks are able to create money by |
- A. Printing money
- B. Making loans
- C. Moral suasion
- D. Selling government bonds
|
| 6 |
A bank has Rs. 5 million in cash. The minimum reserve ration is 20%. What is maximum potential increase in total deposits |
- A. 0
- B. 5 m
- C. 10 m
- D. 25 m
|
| 7 |
When a commercial bank creates credit, it immediately raises |
- A. Its assets
- B. Its liabilities
- C. Money supply
- D. Real national income
|
| 8 |
When a commercial bank creates credit. it immediately raises |
- A. its assets
- B. Its labilities
- C. Money supply
- D. a and c above
|
| 9 |
When banks prepare their balance sheets, the show the money lent in |
- A. Liabilities
- B. Assets
- C. Both asset and liabilities
- D. None
|
| 10 |
The banks can give loans |
- A. Unlimited
- B. Equal to deposits
- C. Less than deposits
- D. More than deposits
|
