College for Advanced Studies

(An Intermediate project by Happy Palace Group of Schools)

Northeastern Chapter, St-1,Block-19, Federal “B” Area, Karachi, Phone: 02136361231, 02136361232

IMPORTANT QUESTION
FOR XII COMMERCE (2021-2022)
SUBJECT: PRINCIPLE OF COMMERCE II (BANKING)
SECTION “B” (SHORT –ANSWER QUESTIONS)

1.List the kinds of Banks. Describe any one.

2.Enlist the kinds of bank on the basis of functions. Describe central bank and saving banks.
3.List the kinds of bank by their function and explain the Agricultural bank.
4.List the General utility services of commercial bank. Describe any one.
5.List any five factors of the amount of cash (Till cash) requirement of a commercial bank.
6.Describe the Primary function of commercial bank.
7.What do you mean by credit creation?
8.Describe current account and fixed account.
9.Enlist the difference types of bank accounts. Describe saving accounts.
10. Describe the various type of bank accounts.
11. For Businessman and salaried persons, which account is better and why.
12. List the steps involved in the opening of bank account.
13. Describe the procedure of opening a bank account.
14. List the cause of dishonor of cheque.
15. Describe any five essentials of bill of exchange.
16. Define crossing of cheque. Describe special crossing.
17. Define endorsement. Describe general and special endorsement.
18. Define Letter of credit. Explain Irrevocable Letter of Credit.
19. Differentiate between bill of exchange and Promissory note.
20. Distinguish between a ‘Stale cheque” & Post- dated cheque.
21. Differentiate between Debit Card and Credit card.
22. In which two ways is a bill change dishonored.
23. Enlist the principles of using bank funds. Explain any one.
24. Define secured and unsecured loans.
25. Define Lien and Hyphotication.
26. List of Profitable and non – Profitable uses f bank funds.
27. Explain methods of credit control.
28. List the Qualitative credit methods. Describe bank rate policy.
29. Describe the relationship of schedule banks with the state bank of Pakistan.
30. Define credit control. Describe various methods adopted by the central bank for credit control.
31. Explain the function of central bank as the “ Lender of Last resort”
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___ ________________________________________________________________________
Northeastern Chapter, St-1, Federal “B” Area, Block-19 Phone:021-36361231, 021-36361232
 College for Advanced Studies
(An Intermediate project by Happy Palace Group of Schools)
Northeastern Chapter, St-1,Block-19, Federal “B” Area, Karachi, Phone: 02136361231, 02136361232

32. List the function of central bank.

33. Central bank acts as a clearing houses. Discuss.
34. Describe Foreign exchange and rate of Exchange.
35. Mention the objectives of exchange control.
36. Explain purchasing power parity theory.
37. Define balances of Trade and Balances of Payment.
38. How is unfavorable balances of payment converted into favorable balances of payment? Describe.
39. What are the sources of Long Term finance?
40. Write sources of short term finance.

SECTION “C” (DETAILED –ANSWER QUESTIONS)

1. Describe the origin and evaluation of Modern banking.

2. Define commercial Bank. Describe the functions of commercial bank.

3. Define bill of exchange. Describe different kinds of bill of exchange.

4. Describe the various causes of dishonoring a cheque by Bank.

5. Define Bank funds. Write their profitable and non-profitable uses.

6. Define credit control. Describe its various methods.

7. Describe the methods adopted by the central bank to control the credit.

8. What is meant by Rate of Exchange? Explain the factors which effect of the rate of exchange.

9. Explain the difference between the balances of trade and balances of payment. How can unfavorable
balance of payment be improved.

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___ ________________________________________________________________________
Northeastern Chapter, St-1, Federal “B” Area, Block-19 Phone:021-36361231, 021-36361232
 College for Advanced Studies
(An Intermediate project by Happy Palace Group of Schools)
Northeastern Chapter, St-1,Block-19, Federal “B” Area, Karachi, Phone: 02136361231, 02136361232

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___ ________________________________________________________________________
Northeastern Chapter, St-1, Federal “B” Area, Block-19 Phone:021-36361231, 021-36361232