|
|
|
11. |
When a central bank wants to increase money supply in circulation: |
A. |
Purchases govt. securities |
B. |
Lowers bank rate |
C. |
Directs banks to advance more loans |
D. |
(a) and (b) of above |
Answer: Option D
Explanation:
|
12. |
State Bank of Pakistan is run by: |
A. |
Board of directors |
B. |
Board of governors |
C. |
Board of managers |
D. |
Board of bankers |
Answer: Option A
Explanation:
|
13. |
Credit money is controlled by: |
A. |
Government |
B. |
Commercial banks |
C. |
Central bank |
D. |
Markets |
Answer: Option C
Explanation:
|
14. |
Every country establishes central bank to: |
A. |
Issue notes |
B. |
Supervise commercial banks |
C. |
Give loans to businessmen |
D. |
(a) and (b) of above |
Answer: Option D
Explanation:
|
15. |
It is NOT an instrument of monetary policy: |
A. |
Bank rate |
B. |
Open market operations |
C. |
Change in reserve ratio |
D. |
Issue notes |
Answer: Option D
Explanation:
|
16. |
It creates credit: |
A. |
Central bank |
B. |
Commercial banks |
C. |
Government |
D. |
Stock exchange |
Answer: Option B
Explanation:
|
17. |
Which is a monetary measure to increase employment |
A. |
Increase in govt. expenditure |
B. |
Reduce govt. expenditure |
C. |
Increase in interest rate |
D. |
Reducing interest rate |
Answer: Option D
Explanation:
|
18. |
In order to reduce consumer borrowing this is raised: |
A. |
Commercial bank deposits |
B. |
Government spending |
C. |
Interest rate |
D. |
The exchange rate |
Answer: Option C
Explanation:
|
19. |
Which organisation controls the banking system in most countries? |
A. |
Central bank |
B. |
Commercial banks |
C. |
Investment Bank |
D. |
World Bank |
Answer: Option A
Explanation:
|
20. |
Treasury bill is used for |
A. |
Getting short term loans |
B. |
Getting long term loans |
C. |
Treasry bill is not credit instrument |
D. |
Treasury bill is a govt. tax bill |
Answer: Option A
Explanation:
|
Read more:
|
|