Pak Oasis Educational System

Multiple Choice Questions

Class: 2nd Year Paper: Banking Date: 19/06/2021
Q: Attempt All Questions
1. Open market operation is a method of:
a. Exchange rate b. Balance or trade c. Issuing note d. Credit control
2. Always payable on demand is:
a. Note payable b. Rent payable c. Bill payable d. Cheque
3. State Bank of Pakistan was established on:
a. 1st Aug 1948 b. 1st July 1948 c. 14th Aug 1947 d. 25th Dec 1947
4. Central bank is lender of last resort to:
a. Public its employees b. State Bank c. Commercial Bank d. None
5. Schedule banks are registered with:
a. State Bank b. National Bank c. Commercial Bank d. None
6. The credit instruments which are transferable from one person to another are:
a. Semi negotiable b. Non-negotiable c. negotiable instruments d. None
7. Commercials bank grant overdraft facility to:
a. Fixed account holders b. Saving account holders c. Current account holders d. None
8. No interest is given by the bank on:
a. Term deposit account b. PLS account c. Current account d. None
9. The purchasing power parity theory was presented by:
a. Gustar Cassel b. J.S Mill c. David Ricardo d. Alfred Marshal
10. The letter of credit is a/an:
a. Request b. Order c. Promise d. Agreement
11. Call rate are charged on these kinds of loans:
a. Term loans b. Loans of demand c. Short term loan d. Long term loan
12. This is not a credit instrument:
a. Cheque b. Bill of Exchange c. Postal order d. Promissory note
13. Bank can pay this cheque to anyone:
a. Cross cheque b. Bearer Cheque c. Stale Cheque d. Order cheque
14. A bill of exchange is:
a. Unconditional order b. Unconditional promise c. Conditional order d. Conditional promise
15. Balance trade includes:
a. Invisible import and export items b. Visible import and export items
c. Bothe visible and invisible import and export d. None of these
16. The objective of clearing house is to:
a. Clear transactions of members bank b. Control Money c. Clear market rate d. None
17. These are not ancestors of early bank:
a. Gold Smith b. Industrialists c. Money lenders d. Merchants
18. Monopoly of currency note issuance is a characteristic of the:
a. Federal Government b. Central Bank c. Commercial Bank d. Provincial Government
19. Bank does not pay interest on this account:
a. Saving b. Current c. Profit and loss d. Demand
20. The bank which comes into existence under the legislative assembly is called:
a. Statutory Bank b. Private bank c. Public Bank d. Partnership Bank
21. The difference of total import and total exports of country is:
a. Import trade b. Export trade c. Balance trade d. Balance of payment
22. Overdraft facility is provided in this account only:
a. Saving b. Fixed deposit c. current d. Profit and loss
23. This is not include in credit instruments:
a. Bill of exchange b. Promissory Note c. Cheque d. Prize Bond
24. A notice must be served in case of dishonoring of:
a. Bill of exchange b. Cheque c. Promissory Note d. Prize Bond
25. Crossing a cheque which contains the name of particular bank:
a. Regular crossing b. Irregular crossing c. General Crossing d. Special Crossing
26. The central bank advances loan to commercial banks:
a. By clearing house b. By Re-discounting Bill of exchange c. By Credit control d. Against cash
27. This is not a quantitative method in the credit control:
a. Open market b. Legislation c. Reserve Ratio d. Rationing of credit
28. Bank deals in:
a. Money b. Money and Credit c. Gold and silver d. Credit
29. All commercial bank keeps their minimum required cash reserve with the:
a. Stock exchange b. Any other bank c. Mortgage bank d. Central bank
30. Bank acts as the custodian of its customer’s:
a. Valuables b. Business c. Cash d. None
31. Exchange bank deals in:
a. Gold and Bullion b. Foreign exchange c. Negotiable instruments d. None
32. E- Banking refers to:
a. Local Banking b. Banking through electronic means c. local banks d. None
33. Central bank rediscounts bill of commercial banks at:
a. Commission b. Bank rate c. Profit rate d. Exchange rate
34. The first central bank of the world is:
a. Bank of Scotland b. Bank of America c. Bank of Venice d. Bank of England
35. The price at which currency of one country is sent to another is:
a. Demand draft b. Transfer money c. Rate of exchange d. Foreign exchange
36. Bank rate determination is the function of:
a. Commercial Bank b. The Federal Government c. Provincial Government d. Central Bank
37. Alternation in cheque must be signed by the:
a. Drawer b. Endorser c. Payee d. Bank Manager
38. For deferred payments it is used:
a. Cash b. Simple agreement c. Credit instrument d. None