Money Banking Finance MCQS Past Papers for B.Com Part-1 Solved in pdf download online practice tests
1.A central bank typically
A. Has a monopoly in issuing currency
B. Use monetary policy in attempts to stabilize economic growth and/or inflation
C. Serves as a “bankers’ bank” that provides services to other banks
D. All of the above are correct
ANSWER: D
2.What is Fiat money.
A. Money Issue by bank
B. Money Issue to account holders
C. Money transfer to account holders
D. Money issed by the Government under emergency
ANSWER: D
3.ATM stands for.
A. Automatic Transfer Machine
B. Automatic Teller Machine
C. Automated Teller Machine
D. Auto telling Machine
ANSWER: C
4.Money is what money does” – who said.
A. Crowther
B. Robertson
C. FA Walker
D. Marshall
ANSWER: C
5.Direct exchange of goods against goods is called.
A. Charter
B. Money
C. Barter
D. None of these
ANSWER: C
6.What possess general acceptability.
A. Bank draft
B. Money
C. Bill of exchange
D. None of these
ANSWER: B
7.Which type of deposits gives highest rate of interest.
A. Current deposit
B. Fixed deposit
C. Recurring deposit
D. None of these
ANSWER: B
8.Which bank deals with the loans of seeds and fertilizers specifically.
A. Agricultural bank
B. Commercial bank
C. Industrial bank
D. None of these
ANSWER: A
9.Which of the following is not the function of the commercial bank.
A. Issue of paper notes.
B. Acceptance of deposits
C. Advancing loans
D. Credit control
ANSWER: A
10.Which bank is called lender of last resort.
A. Commercial bank
B. Agricultural bank
C. Industrial bank
D. Central bank
ANSWER: D
11.Which bank enjoys monopoly power of Note issue.
A. NABARD
B. Commercial Bank
C. Central Bank
D. None of these
ANSWER: C
12.Money performs as a.
A. Measure of value,
B. Medium of exchange
C. Standard of deferred payment
D. All of above
ANSWER: D
13.Credit creations of commercial banks linked with.
A. Banking habits of the people
B. Cash Reserve Ratio
C. Credit policy of the central bank
D. All of the above
ANSWER: D
14.Which among the following is considered to be the most liquid asset.
A. Gold
B. Money
C. Land
D. Treasury bonds
ANSWER: B
15.Currency notes and coins are called as.
A. Flat money
B. Legal tenders
C. Fiat money
D. Both b and c
ANSWER: D
16.A central bank ia a bank which.
A. Has no monopoly in issuing currency.
B. Uses monetary policy in attempts to stabilize economic growth and/or inflation.
C. Serves to earn high profit
D. All of the above are correct.
ANSWER: B
17.What is Metallic money.
A. Money printed on paper
B. Money Issue to account holders
C. Money transfer to account holders
D. Money minted metals
ANSWER: D
18.“who has defined money is anything which is commonly used and generally accepted as a medium.
A. Crowther
B. Robertson
C. FA Walker
D. RP kent
ANSWER: D
19.Direct exchange of goods against goods is called.
A. Charter
B. Money
C. Trade
D. None of above
ANSWER: D
20.Which instrument is not generally acceptable in public dealing.
A. Promisory note
B. Money
C. Metallic money
D. Paper money
ANSWER: A
21.Which type of account can offer the facility of bank overdraft.
A. Current Account
B. Fixed deposit
C. Recurring deposit
D. None of these
ANSWER: A
22.Which bank deals with the loans of plant and machinery specifically.
A. Agricultural bank
B. Commercial bank
C. Industrial bank
D. None of these
ANSWER: C
23.Which of the following is not the function of the commercial bank.
A. Transfer of money.
B. Acceptance of deposits
C. Advancing loans
D. None of above
ANSWER: D
24.The bank which controls the flow of supply of money in country is.
A. Commercial bank
B. Agricultural bank
C. Central bank
D. Industrial bank
ANSWER: C
25.Which bank enjoys monopoly power of Note issue in Pakistan.
A. NABARD
B. Commercial Banks of Pakistan
C. Industrial Bank of Pakistan
D. State Bank of Pakistan
Answer D
26.Money performs as a.
A. Product of market
B. Medium of exchange
C. Credit instrument
D. All of above
ANSWER: B
27.Credit creations mean.
A. To lend the total deposit to the public
B. To keep the total deposit with the bank
C. To keep some portion of total deposit as a cash reserve and lend the remaining portion as loan
D. All of the above
ANSWER: C
28.Paper money and Metallic money are called.
A. Credit money
B. Plastic money
C. Fiat money
D. All of above
ANSWER: C
29.Barter system means.
A. Direct exchange of goods and services without human
B. Exchange of goods and services with gold
C. Exchange of goods and services with money
D. Direct exchange of goods and services without money
ANSWER: D