Question # 1

Draft drawn and pid in two different parties int he same country is called.

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Foreign draft

Demand draft

Local draft

None of these

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

Non -Scheduled banks are formed under.

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Sole trader ship

Firm

Joint Stock Co.

Co-operative society Act

Paying bank with respect to a letter of credit is called.

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Advising bank

Informatory bank

Both these

None of these

Any Co.which transact the business of banking in Pakistan.

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Chartered co.

Joint stock co.

Banking co.

All of these

If the demand of any country's currency increases then rate of exchange becomes

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Favorable

Unfavorable

Both a and b

None of these

In the Presence of Clearing House Scheduled Banks keeps.

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Less Cash Reserve

More Cash Reserve

No cash reserve

Fixed cash reserved

the nature of relations between banker and customers is.

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Bailer and Bailee

Agent and principal

Debtor and creditor

All the above

The number of financial institutions in money is

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Limited

Fixed

Unlimited

All are possible

The signature of the following is compulsory on B/E:

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Bank

Drawee

Drawer

Both (B) & (C)

The part of deposits kept with the central bank is called:

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Cash reserve

Margin

Interest rate

All of the above

If the exporter is not the receiver (beneficiary) of money then a letter of credit is called:

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Resolving

Back to Back

Transferable

None of the above

E-Banking provides benefits to the following

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Accountholder

Banker

Economy

All the above

Which is the secondary function of a commercial bank.

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Accepting deposits

Advancing loans

Collection of cheques

all of these

The word credit has been derived from a latin word.

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Credo

Credere

Creditor

None of these

The acceptance of bill with some conditionis called.

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Dishonor acceptance

Documentary acceptance

Qualified acceptance

General acceptance

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