Chapter no 10

Central bank
Choose the best possible answer

1. First central bank was established in

 France
 England
 USA
 Geneva
2. First central bank was established in
 1576
 1577
 1578
 1579
3. The need of central bank was felt after
 World war 1
 World war 2
 War of 1961
 War of 1971
4. Government transaction are settled by
 Commercial bank
 Central bank
 Industrial development bank
 Agriculture development bank
5. The main objective of central bank is to
 Safeguarding financial stability
 Issue currency
 Provide loans
 Control of credit
6. When commercial banks find any difficulty in meeting their liabilities. The central comes to their
help and acts as a_______
 Lender of first resort
 Lender of last resort
 Advisor
7. There are basically_______ models on which central bank can be constituted
 Five
 Four
 Three
 Two
8. In almost all countries of the world, central bank enjoys complete_______ over currency note
issue
 Benefits
 Monopoly
 Monetary system
9. Central bank controls the supply of currency in the best interest of the______
 Country
 Commercial bank
 Public
 Economy
10. Central bank is a special bank where customer is_______
 Public
 Government
 World bank
11. Central bank receives payments and hold cash balances and tax revenues on behalf of
 Public
 Government
 Commercial bank
12. The London clearing house was established in
 1873
 1874
 1773
 1774
13. The idea of clearing house was first put forth by a bank clerk named______
 Irvin
 Sheldon
 Kent
 Kinley
14. The clearing house function also helps to prevent undesirable competition among______
 Public
 Commercial banks
 Government
15. The central bank increases the liquidity of commercial banks by______ their bills of exchange
 Discounting
 Rediscounting
 Paid
 Receive
16. Foreign exchange reserves are one of the most important_______ of any country
 Liabilities
 Strength
 Assets
17. In developing country________ also have to achieve macro-economic goals
 Commercial banks
 Central bank
 Government
 Financial institution
18. In Pakistan state bank of Pakistan is governed by SBP act
 1950
 1953
 1956
 1958
19. In Pakistan commercial banks work under banking companies ordinance
 1960
 1961
 1962
 1963
20. Central bank work as a financial advisor and agent of_____
 Commercial bank
 Government
 Financial bodies
 Public interest
21. The policy that the central bank adopts to control and regulate credit is called
 Monetary policy
 Interest policy
 Credit policy
 Mark up policy
22. According to_______ changing the money supply to assist the economy to achieve a full
employment
 Meenai
 Macconal
 Hanson
23. Which is not the part of monetary policies
 To achieve full employment
 To increase export
 To have high investment
 To not to raise living standard
24. Open market operations may be defined as purchase and sale of government securities in open
market by the_______
 Central bank
 Commercial bank
 Stock exchange
25. The purpose of open market operation is to______ credit supply and quantity of money in the
economy
 Control
 Create
 Issue
26. The reserve bank of India was directed to perform all functions of the central bank of Pakistan
until
 Sep 1948
 Sep 1949
 Sep 1950
 Sep 1951
27. On Dec 30, 1948, the British government commission distributed the bank of India’s reserve
between Pakistan and India as
 50% for Pakistan, 50% for india
 40% for Pakistan, 60% for india
 30% for Pakistan, 70% for india
 20% for Pakistan, 80% for india
28. The establishment and management of automated clearing house facilities in Pakistan is the
major responsibility of______
 State bank of Pakistan
 NIFT
 Finance department
 Ministry of finance
29. NIFT stands for
 National institution facilitate taxation
 National institutional facilitation technologies
 National institution foreign trade
30. NIFT was incorporated in
 1992
 1993
 1994
 1995
Answer:

1- Geneva
2- 1578
3- World war 1
4- Central bank
5- Safeguarding financial stability
6- Lender of last resort
7- Three
8- Monopoly
9- Economy
10- Government
11- Government
12- 1773
13- Irvin
14- Commercial banks
15- Rediscounting
16- Assets
17- Central bank
18- 1956
19- 1962
20- Government
21- Monetary policy
22- Macconal
23- To not to raise living standard
24- Central bank
25- Control
26- Sep 1948
27- 30% for Pakistan, 70% for india
28- NIFT
29- National institutional facilitation technologies
30- 1995