2nd Year Principles of Banking Full Book Paper

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

1. Who did print the cheque in specific form for the first time or firstly:

   1. Imperial bank

   2. Bank of England

   3. State bank of Pakistan

   4. None of the above

2. 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

3. The bill which can be discounted from central bank:

   1. Sight bill

   2. Time bill

   3. Both a and b

   4. None of these

4. Commercial bank advises its customers on:

   1. Household matters

   2. Financial matters

   3. Political matters

   4. All the above

5. The number of financial institutions in money market is:

   1. Limited

   2. Fixed

   3. Unlimited

   4. All are possible

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 Amount can be withdrawn from fixed deposit account after:

   1. Every six months

   2. Every year

   3. Expiry of term

   4. At any time

7. 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

8. Which of the following institution was converted into IDBP:

   1. Pakistan industrial finance corporation

   2. Pakistan investment corporation

   3. Industrial bank

   4. Pakistan industrial & credit investment corporation

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

   1. Partnership

   2. Non-trading

   3. Trading

   4. All the above

10. What is objective of foreign exchange control?

    1. To stabilize exchange rate

    2. To increase government revenue

    3. Favourable balance of payment

    4. All the above

11. 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

12. 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

13. 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

14. Which one is the beneficiary party of a commercial letter of credit:

    1. Exporter

    2. Importer

    3. Issuing bank

    4. Importer's bank

15. When was the process of Islamization of banking started in Pakistan?

    1. 1977

    2. 1980

    3. 1982

    4. 1985