MGT604 Final Term Quizzes and Papers Mega File

BNK604

Solved MCQs

Under the provisions of which of the following law, banks are given a reasonable time after receipt of documents to honor the draft?

Company Ordinance 1984 Banking Company Ordinance 1962 Prudential Regulations

Uniform Customs and Practice for Documentary Credits

Lecture # 29 Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is given a reasonable amount of time after receipt of the documents to honor the draft.

In Pakistan monopoly for the issuance of currency notes lies with:

National Bank

Central Bank

Habib Bank President of Pakistan

The intent of a(an) ______________ is basically to track the performance of the stock market.

Index Fund

T-Bills Municipal Bonds None of the given options Lecture # 24 The intent of an index fund is basically to track the performance of the stock market.

Which of the following banks make the socially-responsible investments?

Private banks Postal banks

Ethical banks

Offshore banks Lecture # 15 Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments.

Investment banks help companies and governments to raise money by issuing and selling securities in which of the following market?

Capital market

Derivatives market Lecture # 28 It helps companies and governments (or their agencies) raise money by issuing and selling securities in the capital markets (both equity and debt).

To transfer the funds in coded language which of the following mean is used by the banks?

Pay order

Telegraphic transfer

Online fund transfer Demand daft Lecture # 20 Telegraphic Transfer: “T.T instructions regarding PMT are sent to Drawee branch in a coded language and under confidential number known as TEST Number.”

Which of the following bank is called as lender of last resort?

Saving bank

Foreign exchange bank Investment bank Lecture # 2

Pakistan exports are mainly consists of:

Finished products

Raw material

Semi finished products Technology products Lecture # 14 The basic problem for Pakistan is that its exports are mostly raw materials, which are subject to severe price fluctuations in international market prices.

Ownership of asset is transferred to the lessee in which form of the lease?

Financial lease

Operating lease Net lease Fractional lease Ref: A finance lease or capital lease is a type of lease. It is a commercial arrangement where the lessee has the option to acquire ownership of the asset (e.g. paying the last rental, or bargain option purchase price). Moreover ownership of the asset is transferred to the lessee at the end of the lease term.

The ----------------- is suitable for the retired people.

Current account

PLS account

Term deposit account Foreign currency account

How many countries are the members of Asian development bank from all over world?

Lecture # 12 ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside.

Which of the following banking reform has been introduced with an aim to facilitate the depositors to decide in which bank to deposit their saving?

Credit rating

Debit rating E-banking Taxation Lecture # 19 Credit Rating: To facilitate the depositors to make informed judgments about placing their savings with the banks, it has been made mandatory for all banks to get themselves evaluated by credit rating agencies.

All of the following are included in financial system EXCEPT:

Money

Financial markets

Credit cards

Lecture # 11 GLOBAL FINANCIAL SYSTEM: The global financial system (GFS) is a financial system consisting of institutions and regulations that act on the international level, as opposed to those that act on a national or regional level. The main players are the global institutions, such as International Monetary Fund and Bank for International Settlements, national agencies and government departments,