BNK601 Solved MCQs

Banking Laws & Practices

Solved MCQS

Q1. All of the following are provisions regarding management of banks, under The Banks (Nationalization) Act, 1974, EXCEPT:

ŹThe Chief Executive and other officers of the bank shall act in accordance with the policies, criteria and guidelines determined by the Board

ŹThe board shall appoint committees from amongst the executives of the bank, and determine the powers, functions and duties of such committees

ŹThe Pakistan Banking Council (hereinafter referred to as the Council) shall stand dissolved forthwith

ŹThe President, subject to the control and directions of the Board, shall exercise powers of management of the affairs of the bank

Q2. In letter of credit, which of the following is a standard document used for billing for the goods and services?

ŹCommercial invoice

ŹBill of lading

ŹWarranty of title

ŹLetter of indemnity

Q3. All of the following are provisions regarding transfer of ownership of banks, under The Banks (Nationalization) Act, 1974, EXCEPT:

ŹThe ownership, management and control of all banks shall stand transferred to, and vest in, the Federal Government on the commencing day

ŹThe Federal Government may, if it deems necessary, appoint a Chairman of the Board in respect of a bank

ŹThe safety of all deposits in banks shall stand guaranteed by the Federal Government

ŹThe provisions of this Act and the vesting of the shares of the banks in the Federal Government thereunder shall not in any way affect the status of the banks as bodies corporate

Q4. All of the following are the components of Part III (Suspension of Business and winding up of Banking Companies) of Banking Companies Ordinance, 1962, EXCEPT:

ŹPower to dispense with meetings of creditors, etc.

ŹBooked depositors’ credits to be deemed proved

ŹPreferential payments to depositors

ŹSpecial provisions to make calls on contributories

Q5. Who among the following is entrusted responsibilities of executing WILL?

ŹAgent

ŹLawyer

ŹExecutor

ŹHeir

Q6. Which of the following is one in which the exporter has the right to request the paying, or negotiating bank to make either part, or all, of the credit value available to one or more third parties?

ŹIrrevocable confirmed letter of credit

ŹRevolving credit

ŹTransferable letter of credit

ŹRed clause credit

Q7. Which of the following determines how much risk the bank will take and in what form?

ŹManagement's credit process

ŹManagement's credit philosophy

ŹManagement's credit risk

ŹManagement's credit exposure

Q8. Which of the following is/are the function(s) of a microfinance institution under Section 6 of the Corporate and Industrial Restructuring Corporation Ordinance, 2000?

ŹTo accept deposits

ŹTo provide storage and safe custody facilities

ŹTo borrow and raise money and open bank accounts