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Online Tests
Economics Ics Part 2 English Medium Chapter 5 Online Test MCQs With Answers
Question # 1
It creates credit
Choose an answer
Central Bank
Commercial Bank
Government
Stock exchange
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Question # 2
Which type of cheque is more safe for transfer of money
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Cross cheque
Order cheque
Traveller cheque
Bearer cheque
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Question # 3
It is NOT an instrument of moneatry policy
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Discount Rate
Open market operation
Change in reserve ratio
Issue notes
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Question # 4
Which is the sourceof interest for a bank
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Advances
Bills discounted
Investments
All
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Question # 5
Profit and losss sharing is basis of finance under this system.
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Islamic
Capitalistic
Socialistic
None
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Question # 6
Commercial banks accept deposits and provide
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Money
Loans
Bill of exchange
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Question # 7
The bank can give loans
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Unlimited
Equal to deposites
less than deposits
More dhan deposits
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Question # 8
Credit money is created by
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Exchange bank
Commerical Bank
Finance companies
None of the above
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Question # 9
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 # 10
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
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Question # 11
The following is not a bank liability.
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Demand Deposit
Time deposit
Loans
Saving Deposit
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Question # 12
Credit money is created by
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Central bank
Commercial Bank
Government
All of the above
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Question # 13
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 # 14
Demand deposite are
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Bank notes
Money
Considered as ner money
Legal money
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Question # 15
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 # 16
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
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Question # 17
Which is considered liablility by a bank
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Loans
Bank building and equipment
Time deposit
Securities
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Question # 18
Demand deposit are
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Money
Bank note
Legal Money
Considered to near money
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Question # 19
Acting as lender of last resort a cenral bank lend to.
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Money market
Stock exchange
Commercial Bank
Does not lend
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Question # 20
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 # 21
Bank Prepare their balace sheet.
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Weekly
Monthly
Quarterly
Annualy
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Question # 22
Commercial banks are able to create money by
Choose an answer
Making loans
Printing Money
Moral suasion Selling government loans
Printing money
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