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MCQs

Total Questions : 434 | Page 2 of 44 pages
Question 11. The bank established for loans to very small enterprises in Pakistan is called_______________?
  1.    Micro Finance Bank
  2.    Moderba Bank
  3.    SME- Bank
  4.    First MINI Bank
 Discuss Question
Answer: Option A. -> Micro Finance Bank
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 12. Treasury bill is used for_________________?
  1.    Getting short term loans
  2.    Getting long term loans
  3.    Treasury bill in not credit instrument
  4.    Treasury bill is a govt. tax bill
 Discuss Question
Answer: Option A. -> Getting short term loans
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 13. Government of Pakistan issues currency on the basis of__________________?
  1.    Availability of gold in the country
  2.    Availability of dollars in the country
  3.    Demand for money in the country
  4.    Tax collection
 Discuss Question
Answer: Option C. -> Demand for money in the country
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 14. Pakistan’s fiscal years starts from?
  1.    1st September
  2.    1st January
  3.    1st April
  4.    1st July
 Discuss Question
Answer: Option D. -> 1st July
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 15. Velocity of circulation of money means ?
  1.    The number of times a unit of money changes hands daily
  2.    The number of times as unit of money changes hands monthly
  3.    The number of times a unit of money changes hands annually
  4.    The number of times a unit of money changes value
 Discuss Question
Answer: Option C. -> The number of times a unit of money changes hands annually
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 16. The power of a bank to create credit is affected by ?
  1.    The cash reserve requirement
  2.    The amount of cash available
  3.    The number of branches of a bank
  4.    A and B of above
 Discuss Question
Answer: Option D. -> A and B of above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 17. The Liquidity Trap condition occurs at a_______________?
  1.    Low rate of interest
  2.    Very low rate of interest
  3.    High rate of interest
  4.    Very high rate of interest
 Discuss Question
Answer: Option B. -> Very low rate of interest
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 18. A tariff______________?
  1.    Increase the volume of trade
  2.    Reduces the volume of trade
  3.    Has no effect on volume of trade?
  4.    A and C of above
 Discuss Question
Answer: Option B. -> Reduces the volume of trade
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 19. When a commercial bank creates credit its immediate effect is that it raises__________________?
  1.    The exchange rates
  2.    The interest rates
  3.    The money supplies
  4.    The real national income
 Discuss Question
Answer: Option C. -> The money supplies
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 20. When the State Bank wants to decrease money supply in the country, it _______________?
  1.    Buys govt. securities in stock market
  2.    Sells govt. securities
  3.    Lowers discount rate
  4.    B and C of above
 Discuss Question
Answer: Option B. -> Sells govt. securities
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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