Bank System Test 04 Preparation Online

1. Which type of card is not issued by commercial banks?

A. Debit card

B. ATM card

C. Green card

D. Credit card

2. If a person is interested that his amount should be readily available as soon as he needs he should deposit his money in?

A. Time deposit

B. Saving account

C. Profit-loss account

D. Demand deposit

3. Market rate of interest is?

A. May be higher or lower than discount rate

B. Always higher than discount rate

C. Both are equal

D. Always lower than discount rate

4. Most important source of income of commercial banks is?

A. Interest charged on loans

B. Income from collecting utility bills

C. Income from reserves

D. Profit erned on investments

5. Short term loans can be obtained in?

A. Money market

B. Stock market

C. Capital market

D. All the markets

6. Changes in discount rate are brought about by State Bank to?

A. (a) and (b) of above

B. Control inflation

C. Increase investment activity

D. Increase earnings of the bank

7. Select the true statement?

A. The central bank does not advance loans to commercial banks

B. The central bank does not charge interest on loans to banks

C. None is true

D. The central bank charges high interest rate on loans to commercial banks

8. If you borrow from a bank the amount which the bank charges is called?

A. Bank rate

B. Interest rate

C. Borrowing rate

D. Discount rate

9. The rate charged by a central bank on loans is called?

A. Lending rate

B. Market rate

C. Discount rate

D. Tax rate

10. Which type of card is not issued by central banks?

A. Credit card

B. None is issued y it

C. Debit card

D. ATM card

Bank System Test 04 Preparation Online

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