2nd Year Economics Chapter 5 Online MCQ Test for 12th Class Economics Chapter 5 (Banks)

ICS Part 2 Economics English Medium Chapter 5 Test

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MCQ's Test For Chapter 0 "ICS Part 2 Economics English Medium Chapter 5 Online Test"

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ICS Part 2 Economics English Medium Chapter 5 Online Test

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Question # 1

Which is considered liablility by a bank

Question # 2

A bank has Rs. 5 million in cash The minimum reserve ratio is 20% What is maximum potential increase in total deposite.

Question # 3

Every country establishes centralbank to

Question # 4

Demand deposite mean

Question # 5

State Bank policy of regulating intrst rate is called.

Question # 6

The following is not a bank liability.

Question # 7

The following is not a bank liability.

Question # 8

Banks discout it and advance loans.

Question # 9

Credit money is created by

Question # 10

Balance sheet of a bank has two parts

Question # 11

It is NOT an instrument of moneatry policy

Question # 12

Every country establishes central bank to

Question # 13

Short term loans can be obtained in.

Question # 14

Credit money is created by

Question # 15

Acting as lender of last resort a cenral bank lend to.

Question # 16

Profit and losss sharing is basis of finance under this system.

Question # 17

10-Rupees note is issued by

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ICS Part 2 Economics English Medium Chapter 5 Test

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ICS Part II Economics Chapter 0 Important MCQ's

Sr.# Question Answer
1 Credit money is created by
A. Exchange bank
B. Commerical Bank
C. Finance companies
D. None of the above
2 State Bank policy of regulating intrst rate is called.
A. Monetary policy
B. Commerical policy
C. Banking policy
D. Fiscal policy
3 Which is a function of commercial bank
A. Acting as a govt. banker
B. Fixing the exchange rate
C. Making loans
D. Issueing bank notes
4 Commercial banks accept deposits and provide
A. Money
B. Loans
C. Bill of exchange
5 A bank has Rs5 million in cash. The minimum reserve ratio is 20% What is maximum potential increase in total deposits
A. 0
B. 5 m
C. 10 m
D. 25 m
6 It creates credit
A. Central Bank
B. Commercial Bank
C. Government
D. Stock exchange
7 The following is not a bank liability.
A. Demand deposit
B. Time deposit
C. Loan
D. Saving Deposit
8 Which is the sourceof interest for a bank
A. Advances
B. Bills discounted
C. Investments
D. All
9 Central banks rate of lending to commericalbanks is called.
A. Interest rate
B. Discount rate
C. Money rate
D. Inflation rate
10 Which is considered liablility by a bank
A. Loans
B. Bank building and equipment
C. Time deposit
D. Securities

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