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6th Chapter

12th Economics Chapter 6 Test

Here you can prepare 12th Economics English Medium Chapter 6 Central Bank Test. Click the button for 100% free full practice test.

2nd Year Economics Chapter 6 Online MCQ Test for 12th Class Economics Chapter 6 (Central Bank)

This online test contains MCQs about following topics:

. Function of central bank
. Credit control and monetary policy

ICS Part 2 Economics Ch. 6 Test
ic

2nd Year Economics Chapter 6 Online MCQ Test for 12th Class Economics Chapter 6 (Central Bank)

Sr. # Questions Answers Choice
1 When the State bank wants to decrease money supply in the country it
  • A. Buys govt securities in stock market
  • B. Sells govt securities
  • C. Lowers discount rate
  • D. B and C of above
2 Central's bank rate of lending to commercial banks is called
  • A. Interest rate
  • B. Discount rate
  • C. Money rate
  • D. Control rate
3 Credit money is controlled by
  • A. Government
  • B. Commercial banks
  • C. Central bank
  • D. Markets
4 State bank of Pakistan is run by
  • A. Board of directors
  • B. Board of governors
  • C. Board of managers
  • D. Board of bankers
5 Acting as lender of last resort, a central bank lends to
  • A. Money markets
  • B. Stock exchange
  • C. Commercial banks
  • D. Does not lend
6 A Country has proportional system of taxation. A person pay Rs.500 tax when his income is 5000, how much tax he will pay if his earning ris4es to 8000.
  • A. 200
  • B. 400
  • C. 600
  • D. 800
7 Treasury bill is used for
  • A. Getting short term loans
  • B. Getting long term loans
  • C. Treasury bill is not credit instrument
  • D. Treasury bill is govt. tax bill
8 Govt.prepares its budget
  • A. Weekly
  • B. Monthly
  • C. quarterly
  • D. annually
9 Every country establishes central bank to
  • A. Issue notes
  • B. Supervise commercial banks
  • C. Give loans to businessmen
  • D. A and B of above
10 The direct tax is that which
  • A. Is paid by the person on whom it is levied
  • B. Can be directly deposited in the bank
  • C. Can not be evaded
  • D. Heavy burden on the tax payers

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