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Online Tests
ICS Part 2 Economics English Medium Chapter 5 Online Test MCQs With Answers
Question # 1
Credit money is controlled by
Choose an answer
Central bank
Market forces
Commercial Bank
Government
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Question # 2
The following is not a bank liability.
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Demand deposit
Time deposit
Loan
Saving Deposit
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Question # 3
Which is a function of commercial bank
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Acting as a govt. banker
Fixing the exchange rate
Making loans
Issueing bank notes
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Question # 4
Credit money is created by
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Exchange bank
Commerical Bank
Finance companies
None of the above
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Question # 5
Whcih organisation controls the banking system to most countries.
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Central Bank
Commercial bank
Investment bankWorld bank
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Question # 6
Monetary pollicy has the objective
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Decrease unemployment rate
Decrease tax rate
Decreases inflation rate
a and c of the above
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Question # 7
State Bank policy of regulating intrst rate is called.
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Monetary policy
Commerical policy
Banking policy
Fiscal policy
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Question # 8
The following is not a bank liability.
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Demand Deposit
Time deposit
Loans
Saving Deposit
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Question # 9
Central banks rate of lending to commericalbanks is called.
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Interest rate
Discount rate
Money rate
Inflation rate
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Question # 10
Demand deposite mean
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Saving account
Chequeable deposits
Profit loss account
Time deposits
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Question # 11
A bank has Rs. 5 million in cash The minimum reserve ratio is 20% What is maximum potential increase in total deposite.
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25 m
10 m
5 m
0 m
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Question # 12
Demand depostis are.
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Money
Banks notes
Legal money
Considerd and near money
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Question # 13
The money called legal tender includes.
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Currency notes and credit cards
Currency notes and bank deposits
Currency notes and coins
Currency notes and cheques
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Question # 14
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
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Question # 15
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
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Question # 16
Every country establishes central bank to
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Issue currency
To establish commercial bank
Toprepare governemnt budget
All of the of above
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Question # 17
Every country establishes centralbank to
Choose an answer
Issue notes
Supervise commerical bank
Giveloans to businessmen
a and b of above
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