Question # 1

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

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0

5 m

10 m

25 m

Central banks rate of lending to commercial banks is called.

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Money rate

Control rate

Intrested rate

Discount rate

Every country establishes centralbank to

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Issue notes

Supervise commerical bank

Giveloans to businessmen

a and b of above

Treasury bill is used for

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Getting short term loans by central bank

Getting long term loans

Collecting govt. taxes

Make payments of utility bills

Which is a monetary measure to increase employment.

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Increase in govt expenditure

Reduce govt expenditure

Increase in interest rate

Reducing intrest rate

Credit money is created by

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Exchange bank

Commerical Bank

Finance companies

None of the above

If a person is intrested that his amount shoud be readily available as soon ashe needs he should deposit his money in.

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Demand deposits

Tiem deposit

Saving account

Profit loss account

Which type of cheque is more safe for transfer of money

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Cross cheque

Order cheque

Traveller cheque

Bearer cheque

Short term loans can be obtained in.

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Money market

Capital market

Exchange market

Stock Market

Which type of card is not issued by central banks

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Credi card

Debit card

ATM Card

None is issued by it

Balance sheet of a bank has two parts

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Supply and demand for deposits

Supply and demand of Advances

Assests and liablilities

Cash Reserves and loans

Credit money is created by

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Central bank

Commercial Bank

Government

All of the above

It is NOT an instrument of moneatry policy

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Discount Rate

Open market operation

Change in reserve ratio

Issue notes

Which is considered liablility by a bank

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Loans

Bank building and equipment

Time deposit

Securities

Commercial banks accept deposits and provide

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Money

Loans

Bill of exchange

State Bank policy of regulating intrst rate is called.

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Monetary policy

Commerical policy

Banking policy

Fiscal policy

Banks discout it and advance loans.

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Draft

Bill of exchange

Pay Order

Gold

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