Past Papers Banking and Finance

By: Prof. Fazal Rehman Shamil

Guess Paper 1: Banking and Finance Past Papers

University Name – Confidential

NOTE: Q.1 is compulsory, attempt any four questions from the remaining. All questions carry equal marks. Phones and other Electronic Gadgets are not allowed.

Time Allowed: 3 hours

Examination:   Final, Fall – 2020

Total Marks:    70, Passing Marks (35)

Q1: Choose the Correct one.

I. Open market operation is a policy tool that is used in;
(a) Monetary Policy (b) Fiscal Policy (c) Economic Policy
II. A rate at which Commercial Banks issue loans to people is called;
(a) Exchange rate (b) Bank Rate (c) Interest Rate
III. A type of Cheque that cannot be paid on counter is known as;
(a) Crossed Cheque (b) Open Cheque.
IV. The operations of other banks for monetary and economic stability are
controlled by;
(a) Central Bank (b) Commercial Banks
V. Monetary Policy is made by;
(a) State Bank (b) Commercial Banks
VI. Currency notes are issued by State Bank of Pakistan;

(a) True (b) False
VII. There is no difference between Discounting rate and interest rate;
(b) True (b) False

Q2: Differentiate between Central Bank and Commercial Bank. Further explain the different functions perform by Commercial Banks.

Q3: State Bank of Pakistan plays an important role in the economic development of the country. Comment.

Q4: International Monetary Fund was established mainly to ensure the balance of payments stability. Explain further.

Q5: Banker performs various important functions. Explain.

Q6: What is meant by foreign exchange? Further explain the mechanism through which the exchange rate can be determined.

Q7: Attempt ANY TWO of the following;
(a) Define Cheque.
(b) What is the difference between Guarantee and Indemnity?
(c) IFC, IDBPFC, IMF, IBRD, IDA, ATM, SME, ADBP (these terms stand for?)

Guess Paper 2: Banking and Finance Past Papers

University Name – Confidential

NOTE: Q.1 is compulsory, attempt any four questions from the remaining. All questions carry equal marks. Phones and other Electronic Gadgets are not allowed.

Time Allowed: 3 hours

Examination:   Final, Fall – 2020

Total Marks:    70, Passing Marks (35)

Q1: Choose the Correct option.i. “Open Market Operation” is a technique which is used in;
(a) Fiscal Policy (b) Monetary Policy (c) Economic Policy
ii. A rate at which the Commercial Banks issue loans to people is known as;
(a) Exchange rate (b) Bank Rate (c) Interest Rate
iii. A kind of Cheque which cannot be paid on counter is known as;
(a) Crossed Cheque (b) Open Cheque
iv. When money is withdrawn from a bank account and the available balance goes below zero, it is
called;
(a) Overdraft (b) Cash Finance
v. The operations of other banks for monetary and economic stability in the country are controlled
by;
(a) Central Bank (b) Commercial Banks
vi. The bailment of goods as security for payment of a debt or performance of a promise is known
as;
(a) Indemnity (b) Hypothecation (c) Pledge
vii. The maker of a cheque who must also be the account holder is called;
(a) Drawer (b) Drawee (c) Payee

Q2: Differentiate between Central Bank and Commercial Bank. Further write that what are the different types of banks?Q3: State Bank of Pakistan plays a pivotal role in the economic development of Pakistan. Elaborate.Q4: Banker performs several important functions. Discuss in detail.Q5: Define Cheque. Further write a comprehensive note on the types and requisites of a cheque.Q6: Define Foreign Exchange. Explain the mechanism that how the exchange rate can be determined?Q7: Attempt ANY TWO of the following;
(a) Write a short note on SME.
(b) Describe Banker’s Lien.
(c) PICIC, IDBP, ADBP, IFC, IBRD, IDA, ATM (these terms stand for?)

Guess Paper 3: Banking and Finance Past Papers

University Name – Confidential

NOTE: Q.1 is compulsory, attempt any four questions from the remaining. All questions carry equal marks. Phones and other Electronic Gadgets are not allowed.

Time Allowed: 3 hours

Examination:   Final, Fall – 2020

Total Marks:    70, Passing Marks (35)

Q1: Choose the Correct option.
i. A rate at which the State Bank rediscounts first class securities at its counters is called;
(a) Interest Rate (b) Bank Rate (c) Exchange Rate
ii. “Changes in Reserve Requirements” is a technique which is used in;
(a) Monetary Policy (b) Fiscal Policy (c) Economic Policy

iii. Pakistan Industrial Credit and Investment Corporation was established in;
(a) 1955 (b) 1965 (c) 1957
iv. A Person named in the cheque to whom or to whose order the payment is to be made is called;
(a) Payee (b) Drawee (c) Drawer
v. Monetary Policy is made by;
(a) State Bank (b) Commercial Banks
vi. Open market operation is the strategy of buying and selling Government Securities;
(a) True (b) False
vii. Currency notes in Pakistan are issued by commercial banks;
(a) True (b) False

Q2: Commercial Banks perform many important functions. Discuss in detail.

Q3: What is meant by mortgage? Further write a detailed note on different kinds of mortgage.

Q4: What is meant by Nationalization of Banks? Further write a comprehensive note on the effects of Nationalization of Banks.

Q5: The Primary objective of establishing the International Monetary Funds was to ensure the balance of payment stability. Elaborate.

Q6: There are some important principles of lending which must be duly observed while advancing money to the borrowers. Explain.

Q7: Attempt ANY TWO of the following;
(a) Write a short note on IMF.
(b) Shortly define these terms (Overdraft, Exchange Rate, Cheque)
(c) Differentiate between Guarantee and Indemnity.

Guess Paper 4: Banking and Finance Past Papers

University Name – Confidential

NOTE: Q.1 is compulsory, attempt any four questions from the remaining. All questions carry equal marks. Phones and other Electronic Gadgets are not allowed.

Time Allowed: 3 hours

Examination:   Final, Fall – 2020

Total Marks:    70, Passing Marks (35)

Q1: Choose the Correct option.

i. “Changes in Bank Rate” is a Step which is used in;
(a) Fiscal Policy (b) Monetary Policy (c) Trade Policy
ii. The bailment of goods as security for payment of a debt is known as;
(a) Indemnity (b) Hypothecation (c) Pledge
iii. Which one of the following is the final mode of payment?
iv. a)ATM (b) Money (c) Cheque
v. IV. A rate at which State Bank of Pakistan issues loans to Commercial Banks is called;
(a) Exchange rate (b) Interest Rate (c) Bank Rate
vi. A Cheque that cannot be paid on counter is known as;
(a) Crossed Cheque (b) Open Cheque (c) neither a nor b
vii. VI. A Cheque maker who must also be an Account holder is called;
(a) Drawer (b) Drawee (c) Payee
viii. VII. Currency notes in Pakistan are issued by;

(a) Commercial Banks (b) State Bank (c) neither a nor b

Q2: State Bank of Pakistan plays an essential role in the economic development of the country. Discuss.

Q3: The key and primary objective of establishing the IMF was to ensure the balance of payment stability. Elaborate.

Q4: Explain the difference between Crossed Cheque and Opened Cheque. Further explain that what are the different types and requisites of a Cheque.

Q5: There are various important functions which are performed by a Banker. Discuss.

Q6: What is the difference between Fixed Exchange Rate System and Flexible Exchange Rate System? Further explain that how the exchange rate can be determined? Use graph.

Q7: Attempt ANY TWO of the following;

(a) Write a short note on PICIC.
(b) What is meant by Mortgage?
(c) IDBP, IFC, IBRD, FOREX, ATM, SME, ADBP (these terms stand for?