2nd Year Principles of Banking 1st Quarter Book Paper

Q1. Multiple choice questions (Attempt all · 12 × 1 = 12)

1. 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

2. Commercial bank advises its customers on:

   1. Household matters

   2. Financial matters

   3. Political matters

   4. All the above

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. 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

5. Bank of Venus was established in:

   1. 1157

   2. 1401

   3. 1609

   4. 1619

6. 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

7. 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

8. In Pakistan, currecy notes are issued by:

   1. Commercial bank

   2. Central bank

   3. Industrial bank

   4. National saving centre

9. According to registration, bank is divided into following categories:

   1. Home and foreign bank

   2. Central and commercial bank

   3. Scheduled and non-scheduled bank

   4. All the above

10. Which bank protect the precious articles of public into the custody:

    1. Central bank

    2. Industrial bank

    3. Commercial bank

    4. All of these

11. What is necessary to withdraw money through ATMP:

    1. I.D card

    2. Cheque

    3. Pin code

    4. None of the above

12. It is called the bank of banks:

    1. Bank of Punjab

    2. National bank

    3. Muslim commercial bank

    4. Central bank