Question # 1

Which is a function of commercial bank

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Acting as a govt. banker

Fixing the exchange rate

Making loans

Issueing bank notes

Commercial banks are able to create money by

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Making loans

Printing Money

Moral suasion Selling government loans

Printing money

Whis is the most widely used tool of monetary policy

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Open market operation

Clearing house

Discount rate

Issuing of the note

Credit money is created by

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Central bank

Commercial Bank

Government

All of the above

The money called legal tender includes.

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Currency notes and credit cards

Currency notes and bank deposits

Currency notes and coins

Currency notes and cheques

Every country establishes centralbank to

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Issue notes

Supervise commerical bank

Giveloans to businessmen

a and b of above

Treasury bill is used for

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Getting short term loans by central bank

Getting long term loans

Collecting govt. taxes

Make payments of utility bills

The following is not a bank liability.

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Demand Deposit

Time deposit

Loans

Saving Deposit

Monetary pollicy has the objective

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Decrease unemployment rate

Decrease tax rate

Decreases inflation rate

a and c of the above

Demand depostis are.

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Money

Banks notes

Legal money

Considerd and near money

Which is a monetary measure to increase employment.

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Increase in govt expenditure

Reduce govt expenditure

Increase in interest rate

Reducing intrest rate

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