01. Overdraft is an example of?

A. Long term finance B. Short term finance C. medium term finance D. overnight
credit facility

02. While money is an asset not all assets are money because:
A) Money works as a means of payment. D) For something to be money it must be legal tender.
C) Only money is a good asset to hold during times of inflation B) Only money stores value.

03. The money aggregate M1 does not include:

A) Currency in the hands of the public. B) Traveler's checks that have been issued.
C) Currency in the vaults of commercial banks. D) Demand deposits at commercial banks.

04. The money aggregate M2 includes each of the following EXCEPT:

A) Small denomination time deposits. B) Retail Money Market Mutual fund shares
C) Treasury bills. D) M1

05. Modern forms of money include:

A. Paper Notes B. Gold Coins
C. Silver Coins D. Copper Coins

06. EFTS Stands for?

A. Electronic Fund Transfer System B. Electronic Fund Transfer Settlement
B. Electric Fund Transfer System D. Electric Funds Transfer Settlement

07. Direct exchange of surplus commodity for commodity with another person without the use of
money is termed as barter.
A. True B. False

08. Following are the difficulties & inconvenience faced in the barter system except.
A. Double Coincidence of Wants B. Payment in future
C. Ease in tax collection D. Lack of common measure

09. Following are the characteristics of money except.

A. Divisibility B. Mallability
C. Generally Acceptability D. None of the above.

10. Money enables man as consumer to generalize his purchasing power and make his claims on
society in the form which suits him most. Defined by?
A. Adam Smith B. Robertson C. Jevon D. Ruskin

11. Money is classified under which heads?

A. Metallic Money B. Paper Money C. Bank Money D. All of the above
12. Decimal coinage was introduced in Pakistan in the year.
A. 1960 B. 1961 C. 1962 D. 1963

13. 8 Anas is equivalent to how many new pasia?

A. 100 new pasia B. 75 new paisa C. 50 new paisa D. 25 new paisa

14. First central bank was formed in which country?

A. England B. Germany C. USA D. Geneva

15. Basic function of commercial bank.

A. Accepting deposit B. Making Loan C. Collection of Cheques D. Both A & B

16. Following are the secondary functions of the commercial bank except.
A. General Utility Services. B. Discounting of bills C. General Utility services D. Both A & C

17. EPC Stands for?

A. Export promotion circular B. Export promotion cell
C. Electronic payment circular D. None of these

18. Following are the types of banks on the basis of sphere of activities except.
A. Exchange Bank B. Export Banks C. Industrial Banks D. Saving Banks

19. The rate of interest on fixed deposit are fairly high, the longer period of deposit, the lower is the
rate of interest.
A. True B. False

20. Which of following is not a function of money?

A. Medium of Exchange B. Unit of Account
C. Standard Deferred Payment D. Stabilization of Price Level.