2nd Year Principles of Banking 4th Quarter Book Paper

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

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

   1. 1977

   2. 1980

   3. 1982

   4. 1985

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

   1. Limited

   2. Fixed

   3. Unlimited

   4. All are possible

3. 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

4. When interest free banking started in Pakistan:

   1. 1st January 1971

   2. 1st January 1975

   3. 1st January 1981

   4. 1st July 1984

5. Capital market does not deal in:

   1. Shares

   2. Treasury bills

   3. Debentures

   4. Bonds

6. Which one of the following is not the preference of state bank of Pakistan?

   1. Expansion in banking system

   2. Control over the supply of money

   3. Equal distribution of credit

   4. To earn maximum profit

7. Which of the following accounts was introduced by the government of Pakistan in 1st January 1981:

   1. Saving account

   2. Profit and loss sharing saving account

   3. Profit and loss sharing term deposit account

   4. Current account

8. Money market is market of loans for:

   1. Short term

   2. Medium term

   3. Long term

   4. All the above

9. State bank of Pakistan was established on act:

   1. 1948

   2. 1935

   3. 1940

   4. 1947

10. Islamic Bank allow on deposits:

    1. Profit

    2. Interest

    3. Commission

    4. Dividend

11. A developed or organized money market is always:

    1. Elastic

    2. Less elastic

    3. More elastic

    4. Not elastic

12. Commercial bank were nationalized in Pakistan in:

    1. 1965

    2. 1974

    3. 1981

    4. 1984