Question # 1

Non-scheduled bank can

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Deal in foreign exchange

Attain the of public confidence

Open new branch without permission

All the above

What is meant by hypothecation

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To hand over the goods or documents of title to goods by a customer to the bank as a security against a debt

To hand over the documents of property by a customer until the repayment of debt

A type of security in which neither the ownership nor the possession passes to the bank

A receipt of loan which shows that money has been borrowed against an immovable property as a security

Under which Section Scheduled Bank are bond to keep 80% of their Asset in country.

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Section 38

Section 33

Section 37

Section 40

Cheque is a credit instrument.

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Partial negotiable

Negotiable

Non negotiable

None of these

Choose the correct institutions in money market in Pakistan

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State bank of Pakistan

Specialized credit institutions

Commercial banks

All of the above

If a credit is lost, what shuld the holder do.

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Report to employer

report to bank

Reort to insurance co.

All the above

Drawer and drawee belongs to same country.

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Domestic bill

Foregin bill

Trade bill

Accommodation bill

If there is no guarantee to honour a letter of credit then it is called:

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Confirmed letter of credit

Irrevocable letter of credit

Unconfirmed letter of credit

None of the above

It is necessary for scheduled bank to

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Act on the instructions of central bank

Submit report to central bank

Get the books checked

Al the above

Relation between banker and customer terminates, when a :

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Customer becomes mad or lunatic

Customer becomes insane or mental

Customer dies

All od the above

If the rate of interest (profit) on the bank deposits is higher then the banks keep:

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Less cash reserve

Less margin rate

More cash reserve

None of the above

Which bank was formed under the royal order

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Bank of Venice

State Bank of Pakistan

Bank of Barsolona

Chartered bank of England

Which is the Primary functionof a commercial bank.

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Issue Notes

Accepting Deposits

Credit creation

None of these

The current account nd saving account is also called

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Sight deposits

Chequing account

Demand deposits

All of these

Which one is not the feature of good Banking system.

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Economic development

Inflation

Larger Capital

TYrust of public

A mechanism by which international indebtedness is settle dbetween one country and another.

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Indebtedness

Foreign Debts

Foreign exchange

All these

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