Principles of Banking MCQs Guess Paper I Com Part 2 2016

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4/11/2016

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‫ﺷ ﮑ ﺮﯾ‬ ‫ﻣ ﻄﺎ ﺑ ﻖ ﺗ ﯿﺎ ر ی ﮐ ﺮ ﯾ‬ ‫ﺳﻠﯿﺒ ﺲ ﮐ‬ ‫ ا ﭘ ﭙ ﻨ‬.( ‫ﭘ ﭙ ﯿ ﺮ س‬ ‫ اوﻟ‬٢٠١٥ ‫ ﺳ‬٢٠١٠) ‫ﺗ ﯿﺎ ر ﮐ ﯿﺎ ﮔ ﯿﺎ‬ ‫ﮐﺮ ﮐ‬ ‫ا و ر ﻧ ﯿ ﻮ ﮐ ﻮ ر س ﮐﺎ ﺗ ﺠ ﺰ ﯾ‬ ‫ﭘﯿﭙ ﺮ ا وﻟ‬ ‫ﯾ‬.

Guess Paper of Principles of Banking I.Com Part 2 Important MCQs Questions

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Bank is responsible for country’s economic and monetary progress
(A) Central
(B) Commercial
(C) Agricultural
(D) Co-operative

Qualitative methods of monetary policy do not include

(A) Direct actions
(B) Publicity
(C) Bank rate policy
(D) Moral persuasion

What are the objectives of monetary policy?

(A) Stability in price
(B) Exchange stability
(C) Stability in capital market
(D) All these

State Bank of Pakistan was inaugurated by

(A) Laiquat Ali Khan
(B) Miss Fatima Jinnah
(C) Quaid-e-Azam Muhammad Ali Jinnah (RA)
(D) Ayub Khan

When the State Bank of Pakistan came into existence

(A) 1947
(B) 1948
(C) 1955
(D) 1972

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Schedule Bank is registered under State Bank of Pakistan Act
(A) 1965
(B) 1956
(C) 1950
(D) None of these

The bank formed under Royal Charter is

(A) Bank of Venice
(B) Bank of Spain
(C) State Bank of Pakistan
(D) Chartered Bank of England

Which Bank was formed under the Royal order

(A) Bank of Venice
(B) State Bank of Pakistan
(C) Bank of Barcelona
(D)Chartered Bank of England

Which bank does discount the bill of public

(A) Commercial bank
(B) Agriculture bank
(C) Industrial bank
(D) All of these

Which Bank protects costly things of public?

(A) Commercial Bank
(B) Central Bank
(C) Industrial Bank
(D) Agricultural Bank

Stock certificate is a document issued by

(A) Commercial bank
(B) Central bank
(C) Limited companies
(D) Stock market

Who was the foUnder of commercial bank

(A) Goldsmiths A
(B) Merchants
(C) Money lenders
(D) All of these

Credit money in the country is controlled by

(A) Central bank
(B) Commercial bank
(C) Industrial bank
(D) Agricultural bank

Commercial banks create following money

(A) Metallic
(B) Credit
(C) Paper
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(D) All of these

The Commercial Banks may be

(A) Scheduled
(B) Non-scheduled
(C) Foreign
(D) All of these

A Commercial Bank keeps less cash reserve if

(A) Cheque is used in most of the transactions
(B) Clearing House facility is available
(C) Rediscounting facility is available
(D) All these

Commercial Bank can be regarded by nature as

(A) Depository Bank
(B) Central Bank
(C) Investment Bank
(D) None of these

The primary objective of Commercial Bank is

(A) To earn profit
(B) To help the govt.
(C) To help the poor
(D) To issue notes

In Pakistan Clearing House is

(A) Commercial Bank
(B) Scheduled Bank
(C) Central Bank
(D) none of these

Commercial bank advises its customers on

(A) Household matters
(B) Financial matters
(C) Political matters
(D) All of these

Commercial bank is economic advisor of

(A) Customers
(B) Government
(C) Local government
(D) Public

Which is the guardian of credit money?

(A) Central Bank
(B) Commercial Bank
(C) Saving Bank
(D) Scheduled Bank

The rate at which the Central Bank and Commercial Banks purchases and sell foreign currency is called
(A) Spot rate

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(B) Inter bank rate
(C) Forward rate
(D) Market rate

Cash reserve of a Commercial Bank may consist of

(A) Cash in hand
(B) Cash kept with Central Bank
(C) Cash kept with other Banks
(D) All of above

Which has monopoly to issue currency notes?

(A) Commercial Bank
(B) Government
(C) Central Bank
(D) All of these

Commercial banks normally advance loan for

(A) Long-term period
(B) Medium-term period
(C) Short-term period
(D) For progress of trade

Basic objective of commercial bank is

(A) Welfare of people
(B) Help of government
(C) To earth profit
(D) Arrangement of foreign exchange

An account holder does not need to write a cheque to withdraw money from following account
(A) Saving account
(B) Fixed deposit account
(C) Current account
(D) None of these

Crossing makes the cheque

(A) Un-safe
(B) Un-acceptable
(C) Safe
(D) Acceptable

Cheque is always crossed by

(A) Drawer
(B) Drawee
(C) Holder
(D) All of these

If drawer of cheque is a payee himself then what word is written after the word pay
(A) Order
(B) Bearer
(C) Self
(D) None of these

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For which cheque bank pays money ar its counter?
(A) Bearer cheque
(B) Order cheque
(C) Crossed cheque
(D) Both A and B

Each leaf of the Cheque Book contains customer’s

(A) Father’s name
(B) Address
(C) Telephone number
(D) Account number

Cheque is an un-conditional order

(A) From customer
(B) From Bank
(C) From government
(D) None of them

A cheque which can be cashed by its holder

(A) Bearer cheque
(B) Order cheque
(C) Cross cheque
(D) All these

The parties of cheque are

(A) Two
(B) Three
(C) Four
(D) Five

The cheque which cannot be encashed at bank counter is called

(A) Bearer cheque
(B) Order cheque
(C) Cross cheque
(D) Blank cheque

In which account, cheque book is not issued?

(A) Current a/c
(B) Saving a/c
(C) Foreign currency a/c
(D) Fixed deposit a/c

Acceptable credit instruments are

(A) Written
(B) Oral
(C) Foreign
(D) Domestic

An “I OWE YOU” is written instrument drawn by

(A) Trader
(B) Debtor
(C) Creditor
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(D) All of these

Which instrument is not dealt at stock exchange?

(A) Shares
(B) Debentures
(C) Both
(D) Bills of exchange

Bills of exchange is a negotiable instrument that contains

(A) A written order
(B) Conditional written order
(C) Unconditional written order
(D) None of these

Generally, the instruments which are used in foreign receipts and payments called
(A) Exchange control
(B) Foreign exchange
(C) Letter of credit
(D) All these

Credit instrument drawn by one bank on another bank is called

(A) Cheque
(B) Bill of exchange
(C) Bank draft
(D) Postal order

The credit instrument which has four parties is

(A) Bill of exchange
(B) Cheque
(C) Bank draft
(D) Promissory note

The parties bill of exchange are

(A) Three
(B) Five
(C) Six
(D) Seven

Which is comparatively used more?

(A) Bill of exchange
(B) Cheque
(C) Draft
(D) Promissory note

Banks were nationalised in Pakistan in

(A) 1971
(B) 1974
(C) 1978
(D) 1979

Head office of National Bank of Pakistan is situated in

(A) Lahore

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(B) Islamabad
(C) Quetta
(D) Karachi

National Bank of Pakistan was established in

(A) 1948
(B) 1949
(C) 1950
(D) 1951

Islam forbids
(A) Investment
(B) Partnership
(C) Trade
(D) Interest

When was Islamic banking system introduced in Pakistan

(A) 1970
(B) 1972
(C) 1981
(D) 1982

For withdrawal of amount bank issues to account holders

(A) Cash book
(B) Cheque book
(C) Bank draft
(D) Pass book

Bank is an institution
(A) Social
(B) Religious
(C) Financial
(D) Welfare

The person who opens a bank account is called

(A) Owner of the bank
(B) Customer of the bank
(C) Employee of the bank
(D) Director of the bank

I owe you mean

(A) I am your debtor
(B) I am your creditor
(C) Both A & B
(D) All these

Overdraft facility is available in

(A) Saving account
(B) Fixed account
(C) Current account
(D) None of these

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On which of the following amount of overdraft. Bank receives interest
(A) Fix
(B) Total
(C) Used
(D) All these

Who chooses Governor of Central Bank

(A) Public
(B) Shareholders
(C) Government
(D) Minister of State

Which principle is followed by central bank to issue currency notes

(A) Currency principle
(B) Banking principle
(C) Both A & B
(D) None of both

Which function is not performed by central bank

(A) Credit creation
(B) Advancing loans
(C) Lender of last resort
(D) Bank of the public

The primary object of a central bank is to

(A) Earn profit
(B) Advance loans to traders
(C) Safeguard the national interest
(D) All of these

Which of the following Bank performs its functions according to the instructions of Central Bank
(A) Foreign Bank
(B) Schedule Bank
(C) Non-Schedule Bank
(D) All these

Central Bank was established

(A) 1948
(B) 1950
(C) 1951
(D) 1960

Which account is suitable for business community?

(A) Fixed account
(B) Current account
(C) Saving account
(D) All these

Which method is prevailing in Pakistan for issuing note

(A) Fixed fiduciary system
(B) Proportional reserve system
(C) Both A & B
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(D) All these

The following is used in E-Banking

(A) Debit card
(B) Credit card
(C) Both A & B
(D) None of these

E-Banking provides benefits to the following

(a) Account holders
(b) Banker
(c) Economy
(d) All of these

Which Banks can open their branches in foreign countries?

(A) Scheduled Bank
(B) Non scheduled Bank
(C) Both A & B
(D) None of these

The term foreign exchange includes

(A) Bank draft
(B) Letter of credit
(C) Foreign B/E
(D) All of these

What is the objective of foreign exchange control

(A) To stabilize exchange rate
(B) To increase government revenue
(C) Favourable balance of payment
(D) All of these

Which of the following changes cause to change in foreign exchange

(A) Change in exports and imports
(B) Change in capital flow
(C) Change in Bank rate
(D) All these

The loans which are issued for the period of one to five year called
(A) Demand loans
(B) Short term loans
(C) Medium term loans
(D) Long term loans

Drawee of the bank draft is a

(A) Bank on which draft is drawn
(B) Bank which issues a draft
(C) Payee of the draft
(D) Sender of amount by draft

The document which reveals the ownership of goods kept on port

(A) Bill of lading

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(B) Dock warrant
(C) Delivery order
(D) Railway receipt

What percentage of total assets a scheduled bank is bound to kept with in the country
(A) 60%
(B) 70%
(C) 80%
(D) 90%

Joint stock company can open the following account in bank

(A) Fixed
(B) Current
(C) Saving
(D) All of these

PICIC was established as

(A) Private company
(B) Limited company
(C) Partnership
(D) None of these

Modaraba may be
(A) Specific or multi purpose
(B) Prepetual
(C) For specific period
(D) All of these

Scheduled bank means a bank which is registered with

(A) Stock exchange
(B) Central bank
(C) World bank
(D) All of these

On which account a bank does not pay interest

(A) Saving account
(B) Fixed deposit
(C) Current account
(D) All of these

Before opening account in bank, a married woman is asked about her

(A) Husband’s name
(B) Father’s name
(C) Mother’s name
(D) All of these

Loans which can be recovered on demand are called

(A) Short term loans
(B) Demand loans
(C) Over draft
(D) All of these

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Which of the following cannot open account in a bank
(A) Pardah-nasheen woman
(B) Minor or infant
(C) Lunatic or mental patient
(D) Non-trading concerns

A document which shows the title of goods shipped through a general ship is called
(A) Bill of lading
(B) Proforma invoice
(C) Bill of entry
(D) License

Bank provide cash finance facility to such account holders who have
(A) Saving account
(B) Current account
(C) Foreign currency account
(D) Basic banking account

The document/s used in on line banking is / are

(A) Debit card
(B) Credit card
(C) A.T.M. card
(D) All of these

Bank provide Qarz-e-Hasna to

(A) Entrepreneur
(B) Industrialist
(C) Capitalist
(D) Students

The share of federal government in the paid up capital of Industrial Development Bank of Pakistan is
(A) 50%
(B) 51%
(C) 54%
(D) 57%

Obtaining loan against life insurance policy is

(A) Easy
(B) Difficult
(C) Complicated
(D) Impossible

Document used to deposit money into Bank

(A) Bank statement
(B) Pay in slip
(C) Credit voucher
(D) Pass book

The parties of promissory note are

(A) 2
(B) 3
(C) 4
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(D) 5

Which affairs of bank are revealed by Articles of Association?

(A) Internal
(B) External
(C) Political
(D) Financial

What is necessary to withdraw money through ATM?

(A) I. D. card
(B) Cheque
(C) Pin code
(D) None of these

Illiterate person provides to the bank for identity

(A) Birth certificate
(B) Thumb impression
(C) Photograph
(D) All of these

Refund of demand loans is done

(A) After six months
(B) On demand
(C) On fixed period
(D) After three months

The word “Bank” has been derived from German word

(A) Back
(B) Bancus
(C) Banco
(D) None of these

If a Bank is unable to submit prospectus at the time of registration, then it has to submit
(A) Statement in lieu of prospectus
(B) Certificate of incorporation
(C) Certificate of commencement
(D) None of these

What is the purpose of using credit card

(A) To purchase goods and services
(B) To win the prices from Bank
(C) To travel abroad
(D) To invest the savings

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

(A) Increased
(B) Reduced
(C) Waived
(D) All these

Pay-in-slip is written evidence of

(A) Transferring money

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(B) Depositing money
(C) Withdrawing money
(D) All these

A trustee is the
(A) Owner of property
(B) Care-taker of pi-operty
(C) Mortgagee of property
(D) None of these

Long term loan is advanced against the following security

(A) Non-material
(B) Material
(C) Personal
(D) All these

What is received by the Post Office on money order

(A) Profit
(B) Interest
(C) Commission
(D) Duty

A developed or organized money market is always

(A) Elastic
(B) Less elastic
(C) More elastic
(D) Not elastic

Where is Head Office of Z.T.B.L.

(A) Karachi
(B) Lahore
(C) Peshawar
(D) Islamabad

The amount of money in the account of account holder is called

(A) Profit
(B) Interest
(C) Deposit
(D) Loan

Capital market does not deal in

(A) Shares
(B) Treasury bill
(C) Debenttires
(D) Bonds

Which letter of credit is accompanied by some documents

(A) Confirmed
(B) Documentary
(C) Non-documentary
(D) All these

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The nature of relationships between Bank and customer are
(A) Debtor and creditor
(B) Agent and principal
(C) Bailor and Bailee
(D) All these

Bank of England was formed in

(A) 1594
(B) 1694
(C) 1794
(D) 1894

Imperial Bank was established in

(a) 1921
(b) 1925
(c) 1932
(d) 1937

Non-scheduled bank can

(A) Deal in foreign exchange
(B) Attain public confidence
(C) Open new branch without permission
(D) All of these

On which account a bank does not pay interest?

(A) Saving acocunt
(B) Fixed deposit
(C) Current account
(D) All of these

The nature of relations between bank and customers is

(A) Debtor & creditor
(B) Agent &principal
(C) Bailer & bailee
(D) All of these

The goods or items accepted as a security for advaning loan should be

(A) Durable
(B) Insured
(C) Under burden
(D) All of these

Which one can be crossed?

(A) Money order
(B) Postal order
(C) Credit card
(D) All of these

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