Bank (commercial and Central)

1.      Bank is an institution which

1. Deals in shares and other assets
2. Deals in money
3. Not only deals in money but also creates money
4. Sells goods

2.      A commercial bank is that bank which

1. Purchases shares
2. advances loan for short period
3. Issues currency notes
4. Controls money supply

3.      Which is principle asset of bank

1. cash
2. Investment
3. Bank building
4. All of the above

4.      Which is not the main liability of bank

1. Capital
2. Reserve fund
3. Advances and loans
4. Bills payable

5.       Which term is not related to the banking system

1. Bank rate
2. Credit exaction
3. Fiscal Deficit
4. Cash reserve ratio

6.       A cheque can be drawn against the following account

1. Debenture account
2. Share account
3. Current account
4. Time deposit account

7.      While sanctioning over draft facilities the bank allow his customers

1. To withdraw money from their account up to any limit
2.  To withdraw time deposits
3. To withdraw money from their account
4. None of above

8.      If the required ratio is 100% multiple expansion of bank deposits would be

1. 200 %
2. zero
3. 500 %
4. 50 %

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