[OBJECTIVE]
Subject: Money Banking & Finance
Time Allowed: 10 Minutes
Maximum Marks: 10
NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.
Part-I Encircle the right answer, cutting and overwriting is not allowed. (1×10=10)
1. The primary functions of a commercial bank are
a. Receiving utility bill’s b. Accepting deposits and advances loans –
c. Issuance of ATM and Credit cards a. Receiving Hajj applications
2. Generally, the regulatory body for banking system in a country is
a. Central bank b. Commercial bank
c. Investment 921k d. Agricultural bank
3. IMF stand for
a. International Monetary Finance b. International Monetary Fund
c. International Material Fund d. immediate Monetary Feedback
4. The money in document form with value stated on them but having no value in that
a. Metallic Money b. Commodity Money
c. Paper Money d. All of above
5. The method of not issue in which a fixed limit is not backed by any reserve and beyond that limit notes issuance is backed by 100% gold/reserves
a. Fixed Fiduciary System b. Proportional Reserve System
c. Maximum Reserve System d. None of these
6. “Lender of last resort” in banking sector is referred to
a. Central Bank b. Islamic Development Bank
c. Asian Development Sank d. IMF
7. Deposit which can be withdrawn by the depositor at any time by cheques
a. Current deposit b. Fixed deposit
c. Term deposit d. None of the above
8. Fiat money is
a. Backed by gold b. Includes currency and gold stored in bank
c. A type of money shat has no intrinsic value d. None of these
9. Inflation is a situation, which
a. Decrease in purchasing power b. Decrease in price level
c. A given quant. of money purchases a large quantity of goods
d. None of the above
10. Supply of country’s products to the foreign countries
a. Exports b. Imports
c. Retail trade d. Home trade
[SUBJECTIVE]
Subject: Money Banking & Finance
Time Allowed: 2 Hours 45 Minutes
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED.
Part-II Give short answers of the following. (20)
Q#1: Briefly explain principles of note issue
Q#2: What is intrinsic value
Q#3: Differentiate three points between money and currency
Q#4: List down the causes of inflation us
Q#5: What is meant by index numbers?
Q#6: Elaborate recession
Q#7: List down sources of debt financing : :
Q#8: Differentiate between pledge and mortgage
Q#9: Define commodity money
Q#10: List down quantitative tools of monetary policy by central bank
Part-III Give brief answers of the following. (30)
Q#1: How the value of money is determined under demand and supply mechanism? Explain.
Q#2: Differentiate between interest based and interest free banking systems
Q#3: Briefly explain types of deposits being offered by commercial banks.
