Banking Quiz – 110

Banking Quiz

1. Profit and loss-sharing is an element of this system?
a) Islamic
b) Capitalistic
c) Socialistic
d) None of these

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Answer a) Islamic

2. Cash cannot be obtained from bank against?
a) Cross cheque
b) Order cheque
c) Bearer cheque
d) Traveller cheque

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Answer a) Cross cheque

3. Commercial banks accept deposits and provide?
a) Money
b) Cheque
c) Loans
d) Bill of exchange

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Answer c) Loans

4. The banks can give loans?
a) Unlimited
b) Equal to deposits
c) Less than deposits
d) More than deposits

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Answer d) More than deposits

5. Banks discount it and advance loans?
a) Draft
b) Bill of exchange
c) Pay order
d) Good

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Answer b) Bill of exchange

6. Banks prepare their balance sheet?
a) Weekly
b) Monthly
c) Quarterly
d) Annually

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Answer a) Weekly

7. Balance sheet of a bank has two parts?
a) Supply and demand for deposits
b) Supply and demand of advances
c) Assets and liabilities
d) Cash reserves and loans

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Answer c) Assets and liabilities

8. When banks prepare their balance sheets, they show the money lent in?
a) Liabilities
b) Assets
c) Both assets and liabilities
d) None of these

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Answer b) Assets

9. The power of a bank to create credit is affected by?
a) The cash reserve requirement
b) The amount of cash available
c) The number of branches of a bank
d) Both (a) & (b)

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Answer d) Both (a) & (b)

10.Demand deposits are?
a) Bank notes
b) Money (they can be used to make payments)
c) Considered as near money
d) Legal money

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Answer b) Money (they can be used to make payments)

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