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21.

Out of the following the only recognised legal tender is:

A.	Cheque	B.	Bank notes and coins
C.	Bank notes and cheques	D.	Credit card

22.

Open market operations is:

A.	Buying and selling bills of exchange	B.	Buying and selling govt. securities
C.	Buying and selling shares of companies	D.	Buying and selling foreign exchange

23.

Monetary policy has the objective:

A.	Decrease unemployment rate	B.	Decrease tax rate
C.	Decrease inflation rate	D.	All of the above

24.

Every country establishes central bank to:

A.	Issue currency	B.	To prepare government budget
C.	To extablish commercial banks	D.	All of the above

25.

It is a monetary employment:

A.	Increase in govt. expenditure	B.	Increase govt. saving
C.	Increase in interest rate	D.	Reducing interest rate

26.

In order to reduce consumer borrowing:

A.	Bank deposits are increased	B.	Incomes of govt. employees are reduced
C.	Interest rate is increased	D.	Foreign exchange rate is reduced

27.

Which organistion controls the banking system:

A.	Central bank	B.	Provincial bank
C.	Investment Bank	D.	World Bank

28.

The money called legal tender includes:

A.	Currency notes and credit cards	B.	Currency notes and bank deposits
C.	Currency notes and cheque	D.	Currency notes and coins

29.

Open market operations refer to:

A.	Buying and selling of foreign currencies	B.	Buying and selling govt. securities
C.	Buying and selling shares in stock market	D.	Buying and selling of goods in free market

30.

If SLR (statutaory liquidity ratio) is 20% and a bank gets a new deposit of 10 million, the total increase in its deposits can rise up to:

A.	20 millions	B.	50 millions
C.	100 million	D.	200 million