Question # 1

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

Can open new branch without the consent of Centrla Branch.

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Scheduled Bank

State Bank of Pakistan

Non -Scheduled Bank

Bank of England

What is the purpose of monetary policy

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To control banking system

To control supply of money

To control foreign exchange

To control stock market

The central bank works under the rules framed by:

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Government

People

Different banks

All of the above

When was the first central bank of sub-continent established:

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1635

1732

1835

1935

Scheduled Banks are registred under state bank act.

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1956

1984

1962

1932

The transmission of following is stopped due to clearing house:

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Credit money

Metallic money

Cash money

All of 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

Under which Section Scheduled Bank can open new branch.

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Section 38

Section 39

Section 40

Section 41

Example of Non scheduled is

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ABL

AL-Meezan Investment Bank

HBL

NBP

It is necessary for scheduled bank to.

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Obey SBP

Submit report to SBP

Get the Book checked

All the above

Pakistan's central bank was established in:

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1947

1948

1949

1950

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

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5%

10%

30%

100%

If the quatity of money in circulation increases then this situation is called:

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Inflation

Deflation

Money market

All of the above

State Bank of Pakistan Act is

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1932

1962

1984

1997

Central bank bank supervises one of the following systems of a country:

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Provincial

Political

Economical and financial

None of the above

Non- Scheduled banks are formed under co-opeative society Act.

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1932

1925

1984

1911

Which method or methods are prevailing in Pakistan for issuing notes

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Fixed Fiduciary System

Proportional Reserve System

Both a and b

None of the these

Qualitative methods of monetary policy do not include:

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Direct actions

Publicity

Bank rate policy

Moral pursuation

Centrak Bank Act as Lender of Last Resort to.

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Scheduled Bank

Foreign Bank

Non-Sheduled bank

All 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

Which is the quantitative method of credit control

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Change in reserve ratio

Change in margin requirement

Selective control

Publicity

The external value of local currency is stablized through:

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Monetary policy

Increase in prices

Trade policy

All of the above

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