Which of the following is not a function of a commercial bank?

A. accepting public deposits
B. granting loan and advances
C. undertaking agency functions
D. banker to the government

Balance of payments of a country includes ?

A. balance of trade
B. capital receipts and payments
C. savings and investment account
D. a and b of above

When the State Bank wants to decrease money supply in the country, it _______________?

A. buys govt. securities in stock market
B. sells govt. securities
C. lowers discount rate
D. b and c of above

Treasury bill is used for_________________?

A. getting short term loans
B. getting long term loans
C. treasury bill in not credit instrument
D. treasury bill is a govt. tax bill

The Liquidity Trap condition occurs at a_______________?

A. low rate of interest
B. very low rate of interest
C. high rate of interest
D. very high rate of interest

When a commercial bank creates credit its immediate effect is that it raises__________________?

A. the exchange rates
B. the interest rates
C. the money supplies
D. the real national income

Pakistan’s fiscal years starts from?

A. 1st september
B. 1st january
C. 1st april
D. 1st july

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. a and b of above

Government of Pakistan issues currency on the basis of__________________?

A. availability of gold in the country
B. availability of dollars in the country
C. demand for money in the country
D. tax collection

Velocity of circulation of money means ?

A. the number of times a unit of money changes hands daily
B. the number of times as unit of money changes hands monthly
C. the number of times a unit of money changes hands annually
D. the number of times a unit of money changes value