Bank System Test 06 Preparation Online

1. Every country establishes central bank to?

A. Issue notes

B. Give loans to business

C. (a) and (b) of above

D. Supervise commercial banks

2. When a central bank wants to increase money supply in circulation?

A. Directs banks to advance more loans

B. (a) and (b) of above

C. Lowers bank rate

D. Purchases govt. securities

3. Which is a monetary measure to increase employment?

A. Reduce govt. expenditure

B. Increase in govt. expenditure

C. Reducing interest rate

D. Increase in interest rate

4. State Bank of Pakistan is run by?

A. Board of bankers

B. Board of managers

C. Board of directors

D. Board of governors

5. Credit money is controlled by?

A. Commercial banks

B. Markets

C. Central bank D.

D. Government

6. It is NOT an instrument of monetary policy?

A. Bank rate

B. Open market operations

C. Change in reserve ratio

D. Issue notes

7. State Bank of Pakistan has departments?

A. Issue, research and banking department

B. Issue and research department

C. Banking and research department

D. Issue and banking department

8. It creates credit?

A. Commercial bank

B. Central bank

C. Stock exchange

D. Government

9. Central bank's rate of lending to commercial banks is called?

A. Discount rate

B. Interest rate

C. Money rate

D. Control rate

10. Monetary policy consists of?

A. Printing of money

B. Decreasing taxes

C. Changing total money supply

D. Checking commercial banks

Bank System Test 06 Preparation Online

Leave a Reply Cancel reply