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Punjab (PTB) · Half book test · Free

2nd Year Principles of Banking Second half Book Paper

50 marks · 1 hour 30 minutes · 35 questions. Covers: 7 chapters (CHAP 9: Negotiable Instruments-I to CHAP 15: Islamic Banking).

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2nd Year Principles of Banking Second half Book Paper

2nd Year · Principles of Banking · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 50Time: 1 hour 30 minutes

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

  1. 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

  2. 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

  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. The number of financial institutions in money market is:

    1. Limited

    2. Fixed

    3. Unlimited

    4. All are possible

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

    1. Sight bill

    2. Time bill

    3. Both a and b

    4. None of these

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

    1. 1977

    2. 1980

    3. 1982

    4. 1985

  7. 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

  8. 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

  9. Bank pays money at its counter for:

    1. Bearer cheque

    2. Order cheque

    3. (a) and (b)

    4. Crossed cheque

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

    1. Fixed

    2. Revocable

    3. Red clause

    4. Green clause

  11. Capital market does not deal in:

    1. Shares

    2. Treasury bills

    3. Debentures

    4. Bonds

  12. A person who writes the bill is called:

    1. Drawee

    2. Drawer

    3. Payee

    4. Acceptor

  13. When interest free banking started in Pakistan:

    1. 1st January 1971

    2. 1st January 1975

    3. 1st January 1981

    4. 1st July 1984

  14. 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

  15. Foreign exchange control reduces the:

    1. Circulation of capital

    2. Export of capital

    3. Import of capital

    4. None of these

Q2. Short questions (Attempt any 10 of 15 · 10 × 2 = 20)

  1. Write two functions of national bank of pakistan.

  2. Define money market.

  3. State characteristic of credit instruments.

  4. Explain the difference between bill of exchange and bank draft.

  5. Define parties of L.C.

  6. What do you known about the establishment of IDB?

  7. How does the movement of capital effect exchange rate?

  8. Name the deposit schemes offered by IDBL.

  9. List down the qualities of organized money market.

  10. Define cross cheque.

  11. What is trade bill of exchange?

  12. What type of people or persons obtain the traveller's letter of credit.

  13. What is meant by Islamic development Bank?

  14. What are the causes of change in exchange rate?

  15. What were the causes of nationalization?

Q3. Long questions (Attempt any 3 of 5 · 3 × 5 = 15)

  1. Define exchange control. What are its objectives and various methods?

  2. Discuss the interest free modes of financing in Islam.

  3. Write down the features and advantages of bank draft.

  4. Describe in detail the advantages of letter of credit for importer and exporter?

  5. Describe the causes of dishonouring a cheque.