Economics/Economics Central Bank Sample Test,Sample questions

Question:
  It creates credit:

1.Central bank

2.Commercial banks

3.Government

4.Stock exchange


Question:
  It is a monetary employment:

1.Increase in govt. expenditure

2. Increase govt. saving

3.Increase in interest rate

4.Reducing interest rate


Question:
  It is NOT an instrument of monetary policy:

1.Bank rate

2.Open market operations

3.Change in reserve ratio

4.Issue notes


Question:
  Monetary policy has the objective:

1.Decrease unemployment rate

2.Decrease tax rate

3.Decrease inflation rate

4. All of the above


Question:
 Central bank s rate of landing to commercial banks is called:

1.Interest rate

2.Discount rate

3.Money rate

4.Control rate


Question:
 Every country establishes central bank to:

1.Issue notes

2.Supervise commercial banks

3.Give loans to businessmen

4. (a) and (b) of above


Question:
 In order to reduce consumer borrowing:

1.Bank deposits are increased

2.Incomes of govt. employees are reduced

3.Interest rate is increased

4.Foreign exchange rate is reduced


Question:
 Open market operations is:

1.Buying and selling bills of exchange

2.Buying and selling govt. securities

3.Buying and selling shares of companies

4.Buying and selling foreign exchange


Question:
 Out of the following the only recognised legal tender is:

1.Cheque

2.Bank notes and coins

3.Bank notes and cheques

4.Credit card


Question:
 State Bank of Pakistan has departments:

1.Issue and banking department

2.Issue and research departments

3.Banking and research department

4.Issue research and banking department


Question:
 State Bank policy of regulating interest rate is called:

1.Banking policy

2.Monetary policy

3.Fiscal policy

4.Commercial policy


Question:
 State Bank was established in:

1.1948

2.1950

3.1952

4.1954


Question:
 When a central bank wants to increase money supply in circulation:

1.Purchases govt. securities

2.Lowers bank rate

3.Directs banks to advance more loans

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 tool of monetary policy:

1.Clearing house

2.Open-market operations

3. Discount rate

4.Issuing of notes


Question:
 Which organisation controls the banking system in most countries?

1.Central bank

2.Commercial banks

3.Investment Bank

4.World Bank


Question:
 Which organistion controls the banking system:

1.Central bank

2.Provincial bank

3.Investment Bank

4.World Bank


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

1.They vary inversely

2.They vary directly

3.They are not related

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


Question:
10-rupees note is issued by:

1.National Bank

2.State Bank

3.Govt. of Pakistan

4.Governor State Bank


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:
Credit money is controlled by:

1.Government

2.Commercial banks

3.Central bank

4.Markets


Question:
Discount rate of State Bank of Pakistan is:

1.Less than 5%

2.More than 5% but not more than 15%

3.More than 15% but not more than 25%

4.More than 25%


Question:
Every country establishes central bank to:

1. Issue currency

2.To prepare government budget

3.To extablish commercial banks

4. All of the above


Question:
If SLR (statutaory liquidity ratio) is 20% and a bank gets a new deposit of 10 million the total increase in its deposits can rise up to:

1.20 millions

2.50 millions

3.100 millions

4.200 0millions


Question:
In order to reduce consumer borrowing this is raised:

1.Commercial bank deposits

2.Government spending

3.Interest rate

4.The exchange rate


Question:
Monetary policy consists of:

1.Decreasing taxes

2.Changing total money supply

3.Checking commercial banks

4.Printing of money


Question:
Open market operations refer to:

1.Buying and selling of foreign currencies

2.Buying and selling govt. securities

3.Buying and selling shares in stock market

4.Buying and selling of goods in free market


Question:
State Bank of Pakistan is run by:

1.Board of directors

2.Board of governors

3.Board of managers

4.Board of bankers


Question:
The money called legal tender includes:

1.Currency notes and credit cards

2.Currency notes and bank deposits

3.Currency notes and cheque

4.Currency notes and coins


Question:
Treasury bill is used for

1.Getting short term loans

2.Getting long term loans

3.Treasry bill is not credit instrument

4.Treasury bill is a govt. tax bill


Question:
Which is a monetary measure to increase employment

1.Increase in govt. expenditure

2.Reduce govt. expenditure

3.Increase in interest rate

4.Reducing interest rate


More MCQS

  1. Class 9th Economics
  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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