2nd Year Principles of Banking 3rd Quarter Book Paper

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

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

   1. Sight bill

   2. Time bill

   3. Both a and b

   4. None of these

2. 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

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

   1. Exporter

   2. Importer

   3. Issuing bank

   4. Importer's bank

4. 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

5. A person who writes the bill is called:

   1. Drawee

   2. Drawer

   3. Payee

   4. Acceptor

6. The duty of exchange control in Pakistan has been assigned to:

   1. National Bank of Pakistan

   2. State Bank of Pakistan

   3. Ministry of Finance

   4. Exchange Bank

7. Which letter of credit is issued for a single or particular transaction:

   1. Fixed

   2. Revocable

   3. Red clause

   4. Green clause

8. Bank pays money at its counter for:

   1. Bearer cheque

   2. Order cheque

   3. (a) and (b)

   4. Crossed cheque

9. Bill which is drawn without any trade transaction:

   1. Sight bill

   2. Time bill

   3. Trade bill

   4. Accommodation bill

10. Foreign exchange control reduces the:

    1. Circulation of capital

    2. Export of capital

    3. Import of capital

    4. None of these

11. Which type of letter of credit authorizes the exporter to obtain an advance before the shipment of goods.

    1. Documentary letter of credit

    2. Green – clause letter of credit

    3. Confirmed letter of credit

    4. Red-clause letter of credit

12. It is considered unimportant change in a cheque:

    1. Change in date

    2. Change in crossing

    3. Cancellation of crossing

    4. Change in amount