Chap#04 Q1 Central bank

Central bank controls:

• Schedule banks

• Non schedule bank

• Industrial bank

• Agriculture bank

The central bank has monopoly over:

• Overdraft

• Note issuing

• Lending

• Deposits

Money market is controlled by ____________________

• Cooperative bank

• Central bank

• Commercial bank

• Industrial bank

State bank of Pakistan was formed by ____________________________

• Royal charter

• Special ordinance

• Joint stock companies act

• Banking companies ordinance Act

The government held _______of the shares at the time of the establishment of the State Bank of Pakistan.

• 49%

• 50%

• 51%

• 52%

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

• Cash reserve

• Margin

• Interest rate

• All of these

Which of the following functions is NOT performed by Central bank?

• Credit creation

• Advance loans

• Lender of last resort

• Banker of public

If credit money is controlled by the sale and purchase of government securities, it is called:

• Direct action

• Moral persuasion

• Change in reserve ratio

• Open market operation

The primary objective of the central bank is to:

• Earn profit

• Advances loans to traders

• Protection of national interest

• All of these

Credit money in the country is controlled by:

• Central bank

• Commercial bank

• Saving bank

• Agriculture bank