Question # 1

Which function does a central bank not perform

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Credit creation

Advancing loans

Lender of last resort

Banker of the public

Under which Section Scheduled Bank are bond to keep 80% of their Asset in country.

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Section 38

Section 33

Section 37

Section 40

The Bank are called Scheduled Bank which are registered with the.

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Central Bank

world Bank

Bank of England

All the above

The central bank works under the rules framed by:

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Government

People

Different banks

All of the above

Min. Paid up capital of scheduled Bank in Pakistan on 31st December 2011 will be.

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Rs. 05 million

Rs. 06 million

Rs. 10 Billion

Rs. 07 billion

Which is the quantitative method of credit control

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Change in reserve ratio

Change in margin requirement

Selective control

Publicity

Scheduled Banks can keep his totl assets outsinde the country.

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80%

60%

40%

20%

If credit money is controlled by the sale and purchase of government securities, it is called

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Direct action

Moral persuation

Change in reserve ration

Open market operation

What is the objective of clearing house

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To control credit money

To clear the transactions of different banks

Training of banking staff

Re-discounting of bills

The transmission of following is stopped due to clearing house:

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Credit money

Metallic money

Cash money

All of the above

Which principle is followed by central bank to issue currency notes

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Currency principle

Banking principle

Both principle

None of the above

Important functions of a central bank:

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To issue currency notes

To provide banking facilities to government

To advise commercial banks

All of the above

Modern central banking system started in

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18th Century

19th Century

20th Century

None of these

In case of inflation in the country, the rate of margin is:

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Increased

Reduced

Waived

All of the above

Centrak Bank Act as Lender of Last Resort to.

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Scheduled Bank

Foreign Bank

Non-Sheduled bank

All the above

What is meant by margin requirement

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To advance loan less than the value of security

To give less amount as interest than the amount of loan

To advance more loan than the value of security

To advance loan equal to the value of security

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