banking mcqs

MCQS	Submitted By
Q: Which of the following is macroeconomic issue ? A: Your decision to work or stay at home B: The price of houses in karachi C: The wage rate for plumbers in Islamabad D: The level of unemployment is pakistan Test Selected: nts	Asif Ali
Q: A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit ? A: increase, reduction B: reduction, increase C: reduction, reduction D: increase , increase Test Selected: nts	Latif Ali
Q: Central banks prefer to fix the ____ and accept the resulting _____ ? A: demand for money equilibrium money supply B: demand for money, interest rate C: interest rate equilibrium money supply D: interest rate, demand for money Test Selected: nts	Asif Ali
Q: If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ? A: Open Market operations B: lender of less resort C: financial intermediation D: Financial regulation Test Selected: ppsc	Zia Farid
Q: M4 is a __________ measure of money and includes deposits at both __________ and _________ ? A: Narrow, banks insurance companies B: narrow, banks, building societies C: wide, banks insurance companies D: Wide, banks building societies Test Selected: nts	Asif Ali
Q: When interest rate rise, other things equal, we can expect the quantity of real money holding to ? A: not change B: fall C: increase D: None of these Test Selected: ministry of defence jobs	Yasir hameed
Q: If the keep some money available in case I see a bargain this is an example of ? A: token demand for money B: asset demand for money C: transactions demand for money D: precautionary demand for money Test Selected: nts	Sawera Nawaz
Q: If banks and the private sector decide to hold less cash the money multiplier will be ? A: Smaller B: Unchanged C: Larger D: Unstable Test Selected: nts	Tahir Shah
Q: Banks create money by ? A: accepting cheques B: printing it C: issuing debit cards D: lending out part of their deposits Test Selected: nts	Rashid Aziz
Q: Money has 3 main function they are __________ and __________ ? A: Medium of exchange unit of account IOU B: IOU , inflation hedge store of value C: Medium of exchange inflation hedge store of value D: Medium of exchange unit of account store of value E. Medium of exchange unit of account store of value Test Selected: nts	Asif Ali
Q: The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ? A: money demand curve B: money supply curve C: LM curve D: IS curve Test Selected: ministry of defence jobs	Shahida Parveen
Q: Each point on the IS curve represents the equilibrium point in the ? A: money market for the given level of the money supply B: goods market for the given interest rate C: goods market for the given level of government spending D: money market for the given value of aggregate output Test Selected: nts	Hafeez Khan
Q: The way in which government spending is supposed to reduce investment is by increasing ? A: imports B: incomes C: overseas investment D: interest rates Test Selected: nts	Rashid Aziz
Q: The idea the government spending causes a reduction in private investment is called ? A: crowding-out B: fiscal drag C: investment blight D: the Thatcher effects Test Selected: ministry of defence jobs	Zoha Shah
Q: If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur ? A: stagflation B: a hyperinflation C: a depression D: a recession Test Selected: nts	Munir Ahmad
Q: If the investment demand curve is vertical ? A: monetary policy is ineffective but fiscal policy is effective B: both monetary and fiscal policy are ineffective C: monetary policy is effective but fiscal policy is ineffective D: both monetary and fiscal policy are effective Test Selected: fpsc	Zoha Shah
Q: An example of an expansionary monetary policy is ? A: an increase in the discount rate B: a reduction in the taxes banks pay on their profits. C: an increase in the required reserve ratio D: the Central bank buying government securities in the open market Test Selected: nts	Kashif Khan
Q: The interest rate is determined in ? A: the goods market B: the money and labor markets C: the goods and labor markets D: the money markets Test Selected: nts	Asif Ali
Q: The equilibrium level of aggregate output is determined in ? A: the money markets B: the goods and labor markets. C: the goods market D: the money and labor market Test Selected: nts	Asif Ali
Q: The demand for money represents the idea that there is ? A: a negative relationship between the level of aggregate output and the quantity of money demanded B: a positive relationship between the interest rate and the quantity of money demanded C: a negative relationship between the price level and the quantity of money demanded D: a negative relationship between the interest rate and the quantity of money demanded Test Selected: nts	Asif Ali
Q: The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ? A: profit motive B: Transactions motive C: precautionary motive D: speculation motive Test Selected: nts	Zia Farid
Q: Which of the following events will lead to a decrease in the equilibrium interest rate ? A: An increase in the discount rate B: A sale of government securities by the central bank C: An increase in the level of aggregate output D: A decrease in the price level Test Selected: nts	Latif Ali
Q: When economies speak of the demand for money which of the following are they asking ? A: How much income would you like to earn? B: How much cash do you wish you could have? C: How much wealth would you like? D: What proportion of your financial assets do you want to hold in non-interest-bearing forms Test Selected: fpsc	Parvez Kabir
Q: Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ? A: Not change the money supply because banks already have excess reserves they cannot lend B: increase the money supply because it is now cheaper for banks to borrow from the central bank C: decrease the money supply because it will now be more expensive for business firms and consumers to borrow money D: Decrease the money supply because it is now cheaper for banks to borrow from the central bank instead instead of buying government securities Test Selected: ppsc	Zoha Shah
Q: As the required reserve ratio is decreased the money multiplier ? A: could either increase or decrease B: decreases C: remain the same, as long as banks hold no excess reserves D: increases Test Selected: wapda nts	Zoha Shah
Q: Which of the following activities is one of the responsibilities of the Bank of England to the banking system ? A: Loaning money to other countries that are friendly to the UK. B: Assisting Banks that are in a difficult financial pos C: Auditing the various agencies and department of the government D: Issuing new bonds to finance the PSBR. Test Selected: nts	Asif Ali
Q: Which of the following is included in broad money, but not included in narrow money ? A: Currency held outside banks B: savings accounts C: Travelers checks D: Automatic-transfer savings accounts Test Selected: nts	Sameer Rizwan
Q: An item designated as money that is intrinsically worthless is ? A: fiat money B: precious metals C: commodity money D: barter items Test Selected: nts	Sadia Ali
Q: Government Securities with terms of more than one year are called ? A: Treasury bills B: bills of exchanges C: government bonds D: Capital bills Test Selected: nts	Asif Ali
Q: KYC means ? A: Know your customer B: Know your character C: Both of above D: None of above Test Selected: nts	Sadia Ali
Q: Which is prohibited for writing on currency notes ? A: Political message B: Religious message C: Personal message D: All of above Test Selected: state bank of pakistan jobs og2	Ariba Asif
Q: Defaulter of loan means ? A: Not paying loan instalments B: Bad reputation C: Illegal activities D: None of above Test Selected: nts	Sobia Ahmad
Q: Maximum tenure of Fixed Deposit is ? A: 5 years B: 7 years C: 8 years D: 10 years Test Selected: nts	Farid Ahmad
Q: Non-scheduled bank can ? A: Attain the of public confidence B: Open new branch without permission C: All the above D: Deal in foreign exchange Test Selected: nts	Asif Ali
Q: Main uses of bank funds are ? A: Advancing loans B: None of these C: Both a and b D: Direct investment Test Selected: nts	Asif Ali
Q: Bank is bound to honour the cheque of customer if: ? A: Cheque is according to rules of conduct B: Required amount is available in amount C: All of them D: There is no restriction by government Test Selected: nts	Latif Anwar
Q: Which of the following terms is used regarding the confirmation of death of bank customer ? A: Closed account B: Deceased account C: Cancelled account D: Stopped account Test Selected: nts	Zia Farid
Q: Which term is used in connection with monetary policy ? A: Bank rate B: Market rate C: Exchange rate D: Wage rate Test Selected: ppsc	Zameer Jafferey
Q: Bills of exchange is ? A: All of the above B: A promise to pay C: A request to pay D: An order to pay Test Selected: nts	Rabia Anam
Q: Which type of loan is advanced by commercial banks for meeting day-to-day requirements: ? A: Short term loan B: Medium term loan C: All of the above D: Long term loan Test Selected: fpsc	Zoha Shah
Q: It is necessary for scheduled bank to ? A: Act on the instructions of central bank B: Get the books checked C: Al them D: Submit report to central bank Test Selected: nts	Asif Ali
Q: The change in demand and supply of foreign currency effects ? A: Traveller�s L.C B: None of these C: Letter of credit D: Exchange rate Test Selected: nts	Sajid Khan
Q: Capital market does not deal in ? A: Bonds B: Treasury bills C: Shares D: Debentures Test Selected: ppsc	Aamir Aziz
Q: What is the name of central bank of Pakistan ? A: State Bank of Pakistan B: Bank of Pakistan C: National Bank of Pakistan D: Habib Bank Limited Test Selected: fpsc senior auditor test	Rasheed Anwar
Q: Crossing of cheque is cancelled by ? A: Drawee B: Holder C: All of the above D: Drawer Test Selected: nts	Irshad Habib
Q: The Islamic ideology council presents its formal report for Islamic banking in ? A: June, 1979 B: None of these C: June, 1978 D: June, 1980 Test Selected: fpsc senior auditor test	Aamir Aziz
Q: Commercial banks create following money ? A: Mettalic B: Credit C: Paper D: All of these Test Selected: nts	Munawwar Abbas
Q: Stock certificate is a document issued by ? A: Commercial Bank B: Central Bank C: Limited Companies D: Stock Market Test Selected: nts	Munawwar Abbas
Q: Which bank protects costly things of public ? A: Commercial Bank B: Central Bank C: Industrial Bank D: Agricultural Bank Test Selected: nts	Munawwar Abbas
Q: Credit money in the country is controlled by ? A: Central Bank B: Commercial bank C: Industrial Bank D: Agricultural Bank Test Selected: nts	Munawwar Abbas
Q: Bank that accept deposits is called ? Answer: Commercial Bank Test Selected: state bank of pakistan jobs og 2	Mashooque Hussain
Q: Which one is not related to consumer banking ? Answer: Personal relation Test Selected: state bank of pakistan jobs og2	Anwar
Q: Credit money is controlled by ? A: Government B: Commercial banks C: Central bank D: Markets Test Selected: state bank of pakistan jobs og2	Ali
Q: State Bank of Pakistan is run by: ? A: Board of directors B: Board of governors C: Board of managers D: Board of bankers Test Selected: state bank of pakistan jobs og2	Anwar
Q: Central bank's rate of lending to commercial banks is called ? A: Interest rate B: Discount rate C: Money rate D: Control rate Test Selected: state bank of pakistan jobs og2	Anwar
Q: State Bank of Pakistan has departments: ? A: Issue and banking department B: Issue and research department C: Banking and research department D: Issue, research and banking department Test Selected: state bank of pakistan jobs og2	Anwar
Q: Monetary policy consists of: ? A: Decreasing taxes B: Changing total money supply C: Checking commercial banks D: Printing of money Test Selected: state bank of pakistan jobs og2	Anwar
Q: A primary benefit of MBO is ? A: Avoid competition B: Resistance against new entrance C: Improve employee motivation D: Increase resources Test Selected: nts	Syed Imtiaz
Q: ATM stand for ? A: Automatic Transfer Machine B: Automatic Teller Machine C: Automated Teller Machine D: Auto telling Machine Test Selected: nts	Syed Imtiaz
Q: Favourable balance of cash book means ? A: Credit balance B: Zero balance C: Debit balance D: Max balance Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Those cheques which are not credited by the bank are called ? A: Unpresented cheques B: Uncredited cheques C: Nil cheques D: Passed cheques Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: A book in which small expenditures are recorded is called ? A: Contra entry B: Cash book C: Petty Cash Book D: Ledger Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Bank reconciliation is prepared by ? A: Creditor B: Customer C: Banker D: Agent Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Bank reconciliation is a ? A: Ledger B: Statement C: Journal D: Cash Book Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: The balance of petty cash book is ? A: Asset B: Expense C: Liability D: Income Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: The costs of direct materials and direct labor involved in manufacturing an item is ? Answer: Prime cost Test Selected: state bank of pakistan jobs og2	M Ajmal
Q: Banks that accept deposits is called ? Answer: Comercial Banks Test Selected: state bank of pakistan jobs og2	M Ajmal
Q: The two parts of balance sheet are ? Answer: assets and liabilities Test Selected: general	Amber Ali

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