CSS :: Central Bank

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

12.  State Bank of Pakistan is run by:
A. Board of directors B. Board of governors
C. Board of managers D. Board of bankers

13.  Credit money is controlled by:
A. Government B. Commercial banks
C. Central bank D. Markets

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

15.  It is NOT an instrument of monetary policy:
A. Bank rate B. Open market operations
C. Change in reserve ratio D. Issue notes

16.  It creates credit:
A. Central bank B. Commercial banks
C. Government D. Stock exchange

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

18.  In order to reduce consumer borrowing this is raised:
A. Commercial bank deposits B. Government spending
C. Interest rate D. The exchange rate

19.  Which organisation controls the banking system in most countries?
A. Central bank B. Commercial banks
C. Investment Bank D. World Bank

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

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