E None of the above 6 Which of the following statements best describes financial markets? D All of the above. Mortgage markets quiz has 6 multiple choice questions. Q 8 An economist argues that if the Fed raises rates the prices of houses will fall. The banking system is therefore operating with a reserve ratio of: 25. D Creating a liability that he will ultimately have to pay with money. Federal Government bonds and municipal bonds.
Central bank is the bank which has monopoly of issuing currency and which is the apex monetary authority of the country Q. C Is always used when a borrower needs to obtain funds. C Less useful than M1 due to new substitutes for standard checking account. A Commercial Bank B Central Bank C Industrial Bank D Agricultural Bank Stock certificate is a document issued by A Commercial bank B Central bank C Limited companies D Stock market Who was the foUnder of commercial bank A Goldsmiths A B Merchants C Money lenders D All of these Credit money in the country is controlled by A Central bank B Commercial bank C Industrial bank D Agricultural bank Commercial banks create following money A Metallic B Credit C Paper D All of these The Commercial Banks may be A Scheduled B Non-scheduled C Foreign D All of these A Commercial Bank keeps less cash reserve if A Cheque is used in most of the transactions B Clearing House facility is available C Rediscounting facility is available D All these Commercial Bank can be regarded by nature as A Depository Bank B Central Bank C Investment Bank D None of these The primary objective of Commercial Bank is A To earn profit B To help the govt. C People do not take risk.
Q 3 The impact of monetary policy on the exchange rate and net exports is: A predictable for the exchange rate but not for net exports. B Tends to understate actual inflation. B shift the monetary policy reaction function to the right. C Comes into existence after the underlying instrument is in default. Q 13 Deflation: A is good for the economy because it makes it easier for businesses to obtain financing. C decrease spending by households and businesses as well as net exports.
C To help the poor D To issue notes In Pakistan Clearing House is A Commercial Bank B Scheduled Bank C Central Bank D none of these Commercial bank advises its customers on A Household matters B Financial matters C Political matters D All of these Commercial bank is economic advisor of A Customers B Government C Local government D Public Which is the guardian of credit money? D The uncertainty of Federal Reserve monetary policy. C do not require certainty of an event to be able to transfer risk. C Allowing individuals and firms less willing to bear risk to transfer risk to other individuals and firms more willing to bear risk. C Would probably lower the amount in M3 but likely not M1. B Is a high risk financial instrument used by highly risk averse savers. D To obtain a double coincidence of wants without money is impossible. E None of the above.
C steepen the monetary policy reaction function. What prevents the poor from getting bank loans? یہ پیپر اولڈ اور نیو کورس کا تجزیہ کر کے تیار کیا گیا ہے ٢٠١٠ سے ٢٠١٥ اولڈ پپیرس. B Would find people doing everything for themselves. C is one of the simpler tasks the Fed perform in conducting monetary policy. What is the market price of this bond if the market interest rate is 10%? Explain in words and show graphically. A Financial markets raise the cost and increase the speed of buying and selling financial instruments since people are earning fees for these transactions.
B It pays a higher return than most assets. A File an appeal before the finance minister. Money D increases, loan D falls. B A standardized financial liability instrument. B The money supply the Federal Reserve pays the most attention to in conducting monetary policy. What is meant by development Oriented banking? C Financial markets are a good example of unregulated markets. Treasury guarantees all bonds to have a positive yield.
These guesses are prepared after detailed analysis of past five years exams. C A transfer of risk from the insurance company to Tom. D Information is the basis for decisions. B A savings and loan is a financial intermediary. A merchant banking B core banking C mobile banking D Nationalized banking E specialized banking 8. How are short term borrowings made by the government from the central bank? Multiple Choice Questions and Answers on Money and Credit 1.
The Submit Answers for Grading feature requires scripting to function. C Bankers realize time has value and people need to be compensated if they are to keep their money in the bank longer. C Are not part of either's assets or liabilities until the loans are repaid. C There is a relatively strong positive correlation between financial market development and economic growth. Blogging and Digital Marketing is my passion. D A means of payment.