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

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

Question # 2

It creates credit

Question # 3

Short term loans can be obtained in.

Question # 4

Treasury bill is used for

Question # 5

Bank Prepare their balace sheet.

Question # 6

Banks discout it and advance loans.

Question # 7

Whis is the most widely used tool of monetary policy

Question # 8

Which is a function of commercial bank

Question # 9

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

Question # 10

Which type of cheque is least safe for transfer of money

Question # 11

A bank has Rs5 million in cash. The minimum reserve ratio is 20% What is maximum potential increase in total deposits

Question # 12

Every country establishes central bank to

Question # 13

Cash cannot be directly obtaines from a bank against

Question # 14

Out following the only recognised legal tender is

Question # 15

Demand depostis are.

Question # 16

Commercial banks are able to create money by

Question # 17

When a commercial bank creaes credite. Its immediate effect is tha tit raises.

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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 When a commercial bank creaes credite. Its immediate effect is tha tit raises.
A. The exchange rate
B. The money supply
C. The interest rate
D. The real national income
2 Acting as lender of last resort a cenral bank lend to.
A. Money market
B. Stock exchange
C. Commercial Bank
D. Does not lend
3 Which type of cheque is more safe for transfer of money
A. Cross cheque
B. Order cheque
C. Traveller cheque
D. Bearer cheque
4 Demand deposite mean
A. Saving account
B. Chequeable deposits
C. Profit loss account
D. Time deposits
5 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
6 Which is a monetary measure to increase employment.
A. Increase in govt expenditure
B. Reduce govt expenditure
C. Increase in interest rate
D. Reducing intrest rate
7 An asset is liquid when it is
A. Being traded frequnetly
B. Earning a good rate of return
C. Is money or easily converted into money
D. All of the above
8 If you borrow from a bak the amount which the bank charges is called.
A. Interest rate
B. tax rate
C. discount rate
D. Market rate
9 Central banks rate of lending to commericalbanks is called.
A. Interest rate
B. Discount rate
C. Money rate
D. Inflation rate
10 Balance sheet of a bank has two parts
A. Supply and demand for deposits
B. Supply and demand of Advances
C. Assests and liablilities
D. Cash Reserves and loans

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