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: Travellerís 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

About banking mcqs

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