Economics/Economics Bank System MCQS Sample Test,Sample questions

Question:
  An asset is liquid when it is: 

1.Being traded frequently

2.Earning a good rate of return

3. Is money or easily converted into money

4.All of the above


Question:
  Demand deposits are money because: 

1.They are backed by gold

2.They are assets of banks

3.They can be used to make payments

4.All of the above


Question:
  Demand deposits mean: 

1.Saving account

2.Profit loss account

3.Chequeable deposits

4.Time deposits


Question:
  If a person is more interested to earn income he should deposit his money in: 

1.Demand deposit

2.Time deposit

3.Saving account

4.Profit-loss account


Question:
  Nationalisation of banks ws done in: 

1.1974

2.1976

3.1978

4.1980


Question:
  When a commercial bank creates credit its immediate effect is that it raises: 

1.The exchange rate

2.The interest rate

3.The money supply

4.The real national income


Question:
  Which is the source of interest for a bank: 

1.Advances

2.Bills discounted

3.Investments

4. All of the above


Question:
  Which type of cheque is more safe for transfer of money 

1. Bearer cheque

2.Traveller cheque

3.Order cheque

4.Cross cheque


Question:
 Credit money is created by: 

1.Exchange bank

2.Commercial bank

3.Finance companies

4.None of these


Question:
 Functions of commercial bank are: 

1.Issue currency create deposit money and provide loans

2.Accept deposit create deposit money and provide loans

3.Accept deposit provide loans export goods

4.Accept deposit provide loans and control foreign exchange


Question:
 If you borrow from a bank the amount which the bank charges is called: 

1.Bank rate

2.Discount rate

3. Interest rate

4.Borrowing rate


Question:
 Pakistan has a banking system: 

1.Developed

2.Underdeveloped

3.Very unorganised

4.(a) and (c) of above


Question:
 Select the true statement:  

1.The central bank charges high interest rate on loans to commercial banks

2. The central bank does not charge interest on loans to banks

3.The central bank does not advance loans to commercial banks

4.None is true


Question:
 The bank established for loans to very small enterprises is called: 

1.Micro Finance Bank

2.Modarba Bank

3.SME Bank

4.First Mini Bank


Question:
 The banks can give loans: 

1.Unlimited

2.Equal to deposits

3. Less than deposits

4.More than deposits


Question:
 The power of a bank to create credit is affected by: 

1. The cash reserve requirement

2.The amount of cash available

3.The number of branches of a bank

4.Both (a) & (b)


Question:
 The rate charged by a central bank on loans is called: 

1.Market rate

2.Discount rate

3.Lending rate

4.Tax rate


Question:
 This is a difficulty of barter: 

1.Lack of double coincidence of wants

2.Difficulty to use larger scale in production

3.Lack of divisibility of many goods

4.All of the above


Question:
 When a commercial bank creates credit it immediately raises: 

1.Its assets

2.Its liabilities

3. Money supply

4. (a) and (b) of above


Question:
 When the State Bank wants to decrease money supply in the country it: 

1.Buys govt. securities in stock market

2.Sells govt. securities

3.Lowers discount rate

4.(b) and (c) of above


Question:
 Which is the most widely used of monetary policy: 

1.Clearing house

2.Open-market operations

3.Discount rate

4.Issuing of notes


Question:
10-rupee note is issued by: 

1.National Bank

2.State Bank

3.Govt. of Pakistan

4.Governor State Bank


Question:
A bank has Rs. 5 million in cash. The minimum reserve ratio is 20%. What is maximum potential increase in total deposits: 

1.0

2.5 m

3.10 m

4.25 m


Question:
Acting as lender of last resort a central bank lends to: 

1.Money markets

2.Stock exchange

3.Commercial banks

4.Does not lend


Question:
Balance sheet of a bank has two parts: 

1.Supply and demand for deposits

2.Supply and demand of advances

3.Assets and liabilities

4. Cash reserves and loans


Question:
Bank rate in Pakistan is: 

1.3%

2.13%

3.23%

4.33%


Question:
Banks discount it and advance loans: 

1.Draft

2.Bill of exchange

3.Pay order

4.Good


Question:
Banks prepare their balance sheet: 

1.Weekly

2.Monthly

3.Quarterly

4.Annually


Question:
Cash cannot be obtained from bank against: 

1.Cross cheque

2.Order cheque

3.Bearer cheque

4.Traveller cheque


Question:
Changes in discount rate are brought about by State Bank to: 

1.Control inflation

2.Increase investment activity

3.Increase earnings of the bank

4.(a) and (b) of above


Question:
Commercial banks accept deposits and provide: 

1.Money

2.Cheque

3.Loans

4.Bill of exchange


Question:
Commercial banks are able to create money by: 

1.Printing money

2.Making loans

3.Moral suasion

4. Selling government bonds


Question:
Commercial banks in Pakistan are supervised by: 

1.State Bank

2.National Bank

3.Finance Minister

4.World Bank


Question:
Credit money is created by: 

1.Central bank

2.Commercial bank

3.Government

4.All of the above


Question:
Demand deposits are: 

1. Bank notes

2. Money (they can be used to make payments)

3. Considered as near money

4.Legal money


Question:
First Women bank is: 

1.Private bank

2.Govt. Bank

3.Non-Scheduled Bank

4.Investment Bank


Question:
If a person is interested that his amount should be readily available as soon as he needs he should deposit his money in: 

1.Demand deposit

2.Time deposit

3.Saving account

4.Profit-loss account


Question:
Long term loans can be obtained in: 

1.Stock market

2.Money market

3.Capital market

4.Exchange market


Question:
Market rate of interest is: 

1.Always higher than discount rate

2.Always lower than discount rate

3.Both are equal

4.May be higher or lower than discount rate


Question:
Most important source of income of commercial banks is: 

1.Interest charged on loans

2.Profit erned on investments

3.Income from collecting utility bills

4.Income from reserves at central bank


Question:
National Bank is a: 

1.Public sector bank

2.Private bank

3.Micro finance bank

4.Specialised bank


Question:
National Bank of Pakistan is: 

1.Industrial bank

2.Commercial bank

3.Central bank

4.Investment bank


Question:
National Bank of Pakistan was established in: 

1.1949

2.1959

3.1969

4.1970


Question:
Profit and loss-sharing is an element of this system: 

1.Islamic

2.Capitalistic

3.Socialistic

4.None of these


Question:
Select the correct statement: 

1.Credit money is better than legal money

2.Legal money is better than credit money

3.Both legal money and credit money are equally useful

4.All money is evi


Question:
Select the correct statement: 

1. Central bank creates legal money

2.Commercial bank create paper money

3.Finance companies create fake money

4.None of the above is true


Question:
Select the correct statement: 

1.Central bank creates convertible money

2.Commercial bank create convertible money

3.Govt. creates paper money

4.None of the above is true


Question:
Short term loans can be obtained in: 

1.Stock market

2.Money market

3.Capital market

4.All the markets


Question:
State Bank was established in: 

1.1948

2.1950

3.1952

4.1954


Question:
The following is not a bank liability: 

1.Demand deposit

2.Time deposit

3. Saving deposit

4.Loans


Question:
Total number of bank branches in Pakistan is: 

1.More than 5000 but less than 10000

2.More than 10000 but less than 15000

3.More than 15000 but less than 20000

4.More than 20000 but less than 25000


Question:
Total number of branches of Pakistani banks is approximately: 

1.3000

2.9000

3.15000

4.21500


Question:
Velocity of circulation of money means: 

1.Total demand for money

2.Total supply of money

3.The average number of times a unit of money changes hands

4.Annual increase in currency notes


Question:
When banks prepare their balance sheets they show the money lent in: 

1.Liabilities

2.Assets

3.Both assets and liabilities

4.None of these


Question:
Which is a function of a commercial bank: 

1.Acting as a govt. banker

2.Fixing the exchange rate

3.Issuing bank notes

4.Making loans


Question:
Which is considered liability by a bank: 

1.Loans

2.Bank s building and equipment

3.Time deposit

4.Securities


Question:
Which statement is true of the relationship between bond prices and bond yields? 

1.They vary inversely

2.They tool vary directly

3.They are not related

4.They are related in long run and not in the short run


Question:
Which type of card is not issued by central banks: 

1.Credit card

2.Debit card

3.ATM card

4.None is issued y it


Question:
Which type of card is not issued by commercial banks: 

1.Credit card

2.Debit card

3.ATM card

4.Green card


Question:
Which type of cheque is least safe for transfer of money: 

1. Bearer cheque

2.Traveller cheque

3.Order cheque

4.Cross cheque


More MCQS

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  2. Class 10th Economics
  3. Economics Development
  4. Social Economics -Development
  5. Sectors of Indian Economy
  6. Indian Economy for Competitive Examinations
  7. Economics Bank System MCQS
  8. Economics National Income MCQS Set-1
  9. Economics National Income MCQS Set-2
  10. Economic Growth and Development
  11. Economics Money Banking and International Trade
  12. Economics Nature and Scope of Economics
  13. Economics Production and Production Function
  14. Economic Development and Planning
  15. Economics Balance of Payments
  16. Economics Central Bank
  17. Economics Equilibrium Of National Income
  18. Economics International Economic Organisations
  19. Economics Business and Finance
  20. Economics Economics and Commercial Geography
  21. Economics International Economic Organisations set-2
  22. Economics Money and Value of Money
  23. Economics Demand and Supply Set-1
  24. Economics Economy of Pakistan
  25. Economics Public Finance
  26. Economics Scale Of Production and Laws of Returns
  27. Economics Transport Communication and Human Resources
  28. Economics Wages Rent Interest and Profit
  29. Economics Demand and Supply Set-2
  30. Economics Great Economists and Their Work Set-1
  31. Economics Great Economists and Their Work Set-2
  32. Economics Market and Revenue Curves
  33. Economics Market Equilibrium
  34. Economics National Income Accounting Set-1
  35. Economics World Economy
  36. Economics National Income Accounting Set-2
  37. MCQ Indian Economy Set 5
  38. MCQ Indian Economy Set 1
  39. MCQ Indian Economy Set 2
  40. MCQ Indian Economy Set 3
  41. MCQ Indian Economy Set 4
  42. Indian Economy MCQs Part 1
  43. Indian Economy MCQs Part 2
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