2nd Year Principles of Banking First half Book Paper

Q1. Multiple choice questions (Attempt all · 15 × 1 = 15)

1. The following bank can open its branch in foreign country:

   1. Scheduled bank

   2. Non-scheduled bank

   3. Both (a) and (b)

   4. None of these

2. To reduce circulation of currency within a country, central bank:

   1. Increase interest rate

   2. Decrease interest rate

   3. Buy securities

   4. Decreases margin requirement

3. Online banking produce the services of:

   1. Cash deposit in account

   2. Withdrawal of money from bank

   3. Transfer of money

   4. All of these

4. Clubs, cooperative societies, and associations etc. are entitled as following concern:

   1. Partnership

   2. Non-trading

   3. Trading

   4. All the above

5. Commercial bank advises its customers on:

   1. Household matters

   2. Financial matters

   3. Political matters

   4. All the above

6. The primary objective of a central bank is to:

   1. Earn profit

   2. Advance loans to traders

   3. Safeguard the national interest

   4. All the above

7. Amount can be withdrawn from fixed deposit account after:

   1. Every six months

   2. Every year

   3. Expiry of term

   4. At any time

8. Which of the following is a highly marketable security:

   1. Document of title to goods

   2. Shares and debentures

   3. Immoveable property

   4. All the above

9. Which bank cannot discount its bills from central bank:

   1. Schedule bank

   2. Non-schedule bank

   3. Corporative bank

   4. Agricultural bank

10. In Pakistan, currecy notes are issued by:

    1. Commercial bank

    2. Central bank

    3. Industrial bank

    4. National saving centre

11. ATM is used to withdraw money from the:

    1. Branch of bank in which we have the account

    2. Any branch of concerned bank

    3. Other banks

    4. All the above

12. When a person deposits money in a bank, it is the beginning of:

    1. Bank and customer business

    2. Bank and customer relationship

    3. Lending and borrowing between bank and customer

    4. Relation of confidence and trust

13. Which one is a function of a commercial bank:

    1. Issuing a currency notes

    2. Creating credit money

    3. Rediscounting bills of exchange

    4. Preparing monetary policy

14. Bank of Venus was established in:

    1. 1157

    2. 1401

    3. 1609

    4. 1619

15. Which bank account continues after the withdrawal of total amount:

    1. Current account

    2. Fixed despite

    3. Saving account

    4. All the above