Mock Examination 2021 - XII-Commerce Paper-Banking

If a bank undertakes commercial and investment activities together to promote industrialisation, then this type of banking is called

• unit banking.

• chain banking.

• mixed banking.

• branch banking.

What is the total percentage of cash and liquidity reserves that every scheduled bank is required to keep as per the regulations of the State Bank of Pakistan?

• 5%

• 10%

• 15%

• 20%

One of the essential documents required for opening a current account of a partnership business is a/ an

• collateral security.

• attested copy of the partnership deed.

• account holder’s introductory reference letter.

• federal board of revenue (FBR) registration number.

Which of the following functions performed by a commercial bank will assist the central bank to achieve economic development?

• Promoting business ethics

• Helping to control the money supply

• Providing advice for the promotion of trade

• Generating employment opportunities in the country

The title given to the head of the State Bank of Pakistan is the

• Director.

• President.

• Governor.

• Chairmen.

The money that all the commercial banks of Pakistan are required to keep with the State Bank of Pakistan is known as the

• liquidity ratio.

• efficiency ratio.

• cash reserve ratio.

• statutory liquidity ratio.

A central bank can issue Rs 100 note after keeping gold or silver valuing Rs 30 or Rs 40. This method of currency regulation is known as the

• fixed fiduciary system.

• maximum limit system.

• minimum reserve system.

• proportional reserve system.

The State Bank of Pakistan has advised the government to increase the interest rate in the upcoming monetary policy.

The objective achieved by the increase in the interest rate is

• price stability.

• full employment.

• economic growth.

• equal income distribution.

All of the following are the limitations of credit creation EXCEPT for the

• policies of the central bank.

• availability of good securities.

• outflows to foreign countries.

• liquidity preferences of the people.

All of the following are the procedures to control the money supply in an economy EXCEPT

• fluctuating bank rates.

• issuing of currency notes.

• initiating open market operations.

• fluctuating cash reserve requirements.