Banking

GARHI SHAHU BRANCH
Allam Iqbal Road, Near Railway Plaza

Paper: Principles of Banking Name:______________________ Chowk, Garhi Shahu, Lahore.
Class: I.Com-II
Source Person: Naeem Akhtar Roll No._________ Ph: 04236375441
Chapter-I &2 (Evolution of bank and commercial Banks)
Q.1 Encircle the correct option. 05 marks
1. Who was the founder of commercial bank?

(A) Goldsmiths (B) Merchants (C) Money lenders (D) All of these
2. On which account a bank does not pay interest:
(A) Saving account (B) Fixed deposit (C) Current account (D) All of these
3. Loans which can be recovered on demand are called:
(A) Short term loans (B) Demand loans (C) Overdraft (D) All of these
4. Which bank does discount the bill of public:
(A) Commercial bank (B) Agriculture bank (C) Industrial bank (D) All of these
5. The word bank has been derived from German word
(A) Back (B) Bancus (C) Banco (D) None of these
Q.2 Give Short answer to the following Questions. (any five) 10 marks
1. What is meant by pledge?

2. How was the word bankrupt derived?
3. Define memorandum of the Bank.
4. What is fixed currency Account?
5. Define reserve and cash reserve
6. What are different forms of cash reserve of bank?
7. Define articles of Bank.
Q.3. Describe the various kinds of the Bank.

Or
What is cash reserve? Discuss various factors which determine the volume of cash research.
GARHI SHAHU BRANCH
Paper: Principles of Banking Name: _____________________ Chowk, Garhi Shahu, Lahore.
Class: I.Com-II
Source Person: Naeem Akhtar Roll No._________ Ph: 04236375441
Chapter-3 & 4 (E Banking + Central Bank)

1. Which function is not performed by central bank
(A) Credit creation (B) Advancing loans (C) Lender of last resort (D) Bank of the public
2. The following is not used in E- Banking:
(A) Credit card (B) Debit card (C) Cheque (D) All of these
3. Credit money in the country is controlled by:
(A) Central bank (B) Commercial bank (C) Industrial bank (D) Agricultural bank
4. Qualitative methods of monetary policy do not include:
(A) Direct actions (B) Publicity (C) Bank rate policy (D) Moral persuasion
5. What is necessary to withdraw money through ATM
(A) ID card (B)Cheque (C) Pin code (D) None of these
1. What are the products of E-Banking?

2. What is meant by A.T.M.?
3. What is meant by Credit Card?
4. What is Pin Code?
5. What is fixed fiduciary system?
6. Define clearing house.
7. Define central bank.
Q.3 Discuss the Qualitative methods of credit control. 10 marks
Or
Define monetary policy and explain its objectives.

GARHI SHAHU BRANCH
Paper: Principles of Banking Chowk, Garhi Shahu, Lahore.
Class: I.Com-II Name: _____________________
Source Person: Naeem Akhtar Ph: 04236375441
Roll No._________
Chapter-5 & 6 (Scheduled & Non Scheduled Banks and Bank Accounts)
1. Scheduled bank means a bank which is registered with:

(A) Stock exchange (B) Central bank (C) World bank (D) All of these
1. Write any four steps to open a Bank Account.
2. What is meant by pay-in-slip?
3. Define cheque book.
4. What is meant by marketable securities?
5. Define secured and non-secured loans.
6. Define Scheduled Bank.
7. What is meant by special crossing?
8. What is endorsement of a cheque?
Q.3 Write the introduction of various accounts of bank. 10 marks

Or
Differentiate between a scheduled bank and non-scheduled bank.
GARHI SHAHU BRANCH
Roll No._________
Chapter-7 & 8 (Banker Customer relationship and Bank funds and their use)
1. A trustee is the
(A) Owner of property (B) Care-taker of property (C) Mortgagee of property (D) None of these
Married woman can open bank account in:
(A) Saving account (B) Current account (C) Fixed deposit account (D) All of these
Pay-in-slip is written evidence of:
(A) Transferring money (B) Depositing money (C) Withdrawing money (0) All these
The nature of relationships between Bank and customer are:
(A) Debtor and creditor (B) Agent and principal (C) Bailor and Bailee (D) All these
Which letter of credit is accompanied by some documents:
(A) Confirmed (B) Documentary (C) Non-documentary (D) All these
The loans which are issued for the period of one to five year called
Demand loans (B) Short term loans (C) Medium term loans (D) Long term loans
2.

Or
GARHI SHAHU BRANCH
Roll No._________
Chapter-5 & 6 (Scheduled & Non Scheduled Banks and Bank Accounts)
3. Scheduled bank means a bank which is registered with:

(A) Stock exchange (B) Central bank (C) World bank (D) All of these
4. Before opening account in bank, a married woman is asked about her:
(A) Husbands name (B) Fathers name (C) Mothers name (D) All of these
5. Crossing makes the cheque:
(A) Un-sate (B) Un-acceptable (C) Safe (D) Acceptable
6. A trustee is the
7. Married woman can open bank account in:
12. Write any four steps to open a Bank Account.
14. Define cheque book.
17. Define Scheduled Bank.
18. What is meant by special crossing?
19. What is endorsement of a cheque?

Or
Scheduled bank means a bank which is registered with:
(A) Stock exchange (B) Central bank (C) World bank (d) All of these
Before opening account in bank, a married woman is asked about her:

(A) Husbands name (B) Fathers name (C) Mothers name (0) All of these
Crossing makes the cheque:
(A) Un-sate (B) Un-acceptable (C) Safe (d) Acceptable
Main parties of promissory note are
(A) One (B) Two (C) Three (D) Four
I OWE YOU is written instrument drawn by:
(A) Trader (B) Debtor (C) Creditor (D) All of these
What is the objective of foreign exchange control
(A) To stabilize exchange rate (B) To increase government revenue (C) Favorable balance of payment (D) All of these
Money market deals in:
(A) Promissory note (B) Bill of exchange (C) Marketable securities (0) All of these
When the State Bank of Pakistan came into existence:
(A) 1947 (B) 1948 (C) 1955 (D) 1972
PICIC was established in:
(A) 1950 (B) 1951 (C) 1957 (D) 1961
Commercial banks create following money:

(A) Metallic (B) Credit (C) Paper (d) All of these
When was Islamic banking system introduced in Pakistan

(A) 1970 (B) 1972 (C) 1981 (0)1982
Which of the following cannot open account in a bank:
(A) Pardah-nasheen woman (B) Minor or infant (C) Lunatic or mental patient (D) Non-trading concerns
Drawee of the bank draft is a:

(A) Bank on which draft is drawn (B) Bank which issues a draft (C) Payee of the draft (D) Sender of amount
by draft
The document which reveals the ownership of goods kept on port:
(A) Bill of lading (B) Dock warrant (C) Delivery order (D) Railway receipt
Stock certificate is a document issued by:
(A) Commercial bank (B) Central bank (C) Limited companies (D) Stock market
What percentage of total assets a scheduled bank is bound to kept within the country
(A).60% (B) 70% (C) 80% (D) 90%
Crossing makes the cheque:
(A) Unsafe (B) safe (C) Both A & B (D) None of them
The term foreign exchange includes:
(A) Bank draft (B) Letter of credit (C) Foreign BIE (D) All of these
Joint-stock company can open the following account in bank:
(A) Fixed (B) Current (C) Saving (D) All of these
An account holder does not need to write a cheque to withdraw money from following account:
(A) Saving account (B) Fixed deposit account (C) Current account (D) None of these
6. Which of the following Bank performs its functions according to the instructions of Central Bank:
(A) Foreign Bank (B) Schedule Bank (C) Non-Schedule Bank () All these
8. A trustee is the
lo. If drawer of cheque is a payee himself then what word is written after the word pay
(A) Order (B)bearer (C) Self (D) None of these
Ii. hill of Exchange is a negotiable instrument which contains
(A) A written order (B) Conditional written order (C) Unconditional written order (D) None of these
12. What is received by the Post Office on money order:
(A) Profit (b) Interest (C) Commission (D) duty
13. Which of the following changes cause to change in foreign exchange
(A) Change in exports and imports (B) change capital flow (C) Change in Bank rate (D) All these
14. A developed or organized money market is always
(A) Elastic (B) Less elastic (C) More elastic (D) Not elastic
15. Where is Head Office of Z.T.B.L.
(a) Karachi (B) Lahore (C)Peshawar (D) Islamabad
4. On which of the following amount of overdraft. Bank receives interest:

(A) Fix (B) Total (C) Used (D) All these
5. Crossing makes the cheque
(A) Unsafe (B) Unacceptable (C) Safe (D) Acceptable
6. Generally, the instruments which arc used in foreign receipts and payments called: ,.
(A) Exchange control (B) Foreign (C) Letter of credit
7. Bills of exchange is a Negotiable Instrument that contains:
(A) A written order (B) Conditional written order (C) Unconditional written order (D) None of these
8. Capital market does not deal in:
(A) Shares (B) Treasury bill (C) Debentures (D) Bonds
II. What is number of members of the management body of ZTBI.:
(A) 5 (B) 8 (C) 10 (D) 12
14. Scheduled bank is registered under State Batik of Pakistan Act:
(A) 1965 (B) 1956 (C) 1950 (D) None of these
15. Bank of England was formed in:
(A) 1594 (B) 1694 (C) 1794 (D) 1894
The banks, which are included in the list of Central Bank, are called;
(A) Private Bank (B) Scheduled Bank (C) Non-scheduled Bank (D) All of these
2. Where the Head Office of Industrial Development Bank of Pakistan is situated;
(A) Lahore (B) Faisalabad (C) Islamabad (D) Karachi
3. Which of the following Bank cannot open new branch without approval of Central Hank:
(A) Non-Scheduled Bank (B Scheduled Bank (C) None of these two (0) Both 1st and 2nd
4. Commercial Banks create money:
(A) Metal (B) Credit (C) Paper (1)) All of these
5. When was Agricultural Development Bank of Pakistan established;
(A) 1961 (B) 1971 (C) 1956 (0)1955
7. If the name of specific bank is written within the crossing of cheque that crossing is called;
(A ) regular crossing (B) Irregular crossing (C) General crossing (D) Special crossing
8. Married woman can open bank account in:
9 If the drawer of cheque is Payee, what word is written after the word Pay;
(A) Order (B) Bearer (C) Self (D) None of these
10. In which capacity ,the head of Govt. Institution can open Bank Account;
(A) Consumer (B) Owner (C) Employee (D) None of these
II. Which of the method is commonly used for foreign payments:
(A) Foreign bill (B) Post (C) Telegraph (D)) None of these
12. If there is increase in the demand of currency of any country. exchange rate will be;
(A) Favorable (B) unfavorable (C) Both 1st and 2nd (D) None of these
13. How much paid up capital of State Bank of Pakistan was at its existence;
(A) Rs. 30 Million (B) Rs. 3Q0 Million (C) R.s. 30 Billion (0) Rs. 300 Billion
14. What is the rate which is used for balance of payment;
(A) Discount rate (B) Interest rate (C) Exchange rate (D) Market rate
which of the following receipt shows the ownership of the goods at sea port;
(A)Air bill (B) Dock warrant (C) Possession order (D) Railway receipt
If a Bank is unable to submit prospectus at the time of registration, then it has to submit:
Statement in lieu of prospectus (B) Certificate of incorporation (C) Certificate of commencement
(D) None of these
Commercial Bank can be regarded by nature as
Depository Bank (B) Central Bank (C) Investment Batik (D) None of these
In case of inflation in the country, the rate of margin is:
Increased (B) Reduced (C) Waived (0) All of these
The amount of money in the account of account holder is called:
Profit (B) Interest (C) Deposit (D) Loan
The primary objective of a Central Bank is
Earn profit (B) Advance loan to traders (C) Safeguard the national interest (D) All these
A Commercial Bank keeps less cash reserve if:
Cheque is used in most of the transactions, (B) Clearing House facility is available (C)
rediscounting facility is available (D) All these
Which of the following bank account does not require cheque for withdrawal of cash;
(A) Saving account (B) Fix deposit account (C) Current account (D)All of these
Long term loan is advanced against the following security:

(A) Non-material (B) Material (C) Personal (D) All these
What is E-Banking system?
6. Which principle is followed by central bank to issue currency notes:

(A) Currency principle (B) Banking principle (C) Both A & B (D) None of both
8. The primary object of a central bank is to:
(A) Earn profit (B) Advance loans to traders (C) Safeguard the national interest (D) All of these
3. What is the purpose of using credit card
(A) To purchase goods and services (B) To win the prices from Bank (C) To travel abroad (D) To invest
the savings

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GARHI SHAHU BRANCH

Allam Iqbal Road, Near Railway Plaza

Chapter-I &2 (Evolution of bank and commercial Banks)

Q.1 Encircle the correct option. 05 marks

1. Who was the founder of commercial bank?

1. What is meant by pledge?

Q.3. Describe the various kinds of the Bank.

Chapter-3 & 4 (E Banking + Central Bank)

Q.1 Encircle the correct option. 5 marks

1. What are the products of E-Banking?

Q.3 Discuss the Qualitative methods of credit control. 10 marks

Define monetary policy and explain its objectives.

Q.1 Encircle the correct option. 05 marks

1. Scheduled bank means a bank which is registered with:

Q.3 Write the introduction of various accounts of bank. 10 marks

Q.1 Encircle the correct option. 05 marks

Q.3 Write the introduction of various accounts of bank. 10 marks

Q.1 Encircle the correct option. 05 marks

3. Scheduled bank means a bank which is registered with:

Q.3 Write the introduction of various accounts of bank. 10 marks

Before opening account in bank, a married woman is asked about her:

Commercial banks create following money:

When was Islamic banking system introduced in Pakistan

Drawee of the bank draft is a:

4. On which of the following amount of overdraft. Bank receives interest:

Long term loan is advanced against the following security:

6. Which principle is followed by central bank to issue currency notes:

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