4th Chapter

12th Principles of Banking Chapter 4 Test

Here you can prepare 12th Class Principles of Banking Chapter 4 Central Bank Test. Click the button for 100% free full practice test.

12th class Principle of Banking chapter 4 online mcq test with answers for ICom part 2 Principle of Banking Chapter 4 (Central Bank)

This online test contains MCQs about following topics:

. Introduction and growth of central bank . Definition of central bank and its principles . Functions of central bank . Clearing house and working of clearing house . Advantages of clearing house . Tools of monetary policy . Diffeculties in controlling credit . Differnece between central bank and commercial bank

ICOM Part 2 Banking Ch 4 Test
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12th class Principle of Banking chapter 4 online mcq test with answers for ICom part 2 Principle of Banking Chapter 4 (Central Bank)

Sr. # Questions Answers Choice
1 Participation term certificate are issued by.
  • A. Sole trader ship
  • B. Firm
  • C. Joint Stock Co.
  • D. Co-operative society
2 The document acquire to convert non -scheduled into scheduled bank
  • A. Prospectus
  • B. Debentures
  • C. By laws copy
  • D. Audited Annual Report
3 Qualitative methods of monetary policy do not include:
  • A. Direct actions
  • B. Publicity
  • C. Bank rate policy
  • D. Moral pursuation
4 Which principle is followed by central bank to issue currency notes
  • A. Currency principle
  • B. Banking principle
  • C. Both principle
  • D. None of the above
5 Which is the quantitative method of credit control
  • A. Change in reserve ratio
  • B. Change in margin requirement
  • C. Selective control
  • D. Publicity
6 In case of inflation in the country, the rate of margin is:
  • A. Increased
  • B. Reduced
  • C. Waived
  • D. All of the above
7 Under fixed fiduciary system, if notes are issued in excess of fiduciary limit then how much value of precious metal or foreign exchange is kept as reserve for over issue
  • A. 5%
  • B. 10%
  • C. 30%
  • D. 100%
8 Which term is used in connection with monetary policy
  • A. Bank rate
  • B. Exchange rate
  • C. Wage rate
  • D. Market rate
9 Modern central banking system started in
  • A. 18th Century
  • B. 19th Century
  • C. 20th Century
  • D. None of these
10 Example of Non scheduled is
  • A. ABL
  • B. AL-Meezan Investment Bank
  • C. HBL
  • D. NBP

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