Q: Primary motivation for investment in commodities is most likely the:

A Positive correlation of commodities with unexpected inflation. --- True

B Positive correlation of commodities with stock and bond investments.
C Positive volatility of commodities relative to stock and bond investments
D All of above

Q: An endorsement is said to be Restrictive endorsement, if it satisfies which of the following

conditions?

A If the endorser signs his name only

If the endorser adds a direction to pay the amount mentioned in the instrument to, or to the
B
order of, a specified person
C If the endorser restricts or excludes the right to further negotiate the instrument-True
D If the endorser purports to transfer to the endorsee only a part of the amount payable

Q: A banking company can engage itself in which of the following businesses under section 7
of Banking Companies Ordinance, 1962?

A Borrowing, raising, or taking up of money

B The lending or advancing of money either upon or without security
C The granting and issuing of letters of credit
D All of the given options --- True

Q: What is the bailment of goods as security for payment of a debt or performance of a

promise called?

A Hypothecation
B Mortgage
C Lien
D Pledge --- True

Q: In letter of credit, which of the following is payable as soon as it is presented for payment?

A Demand draft
B Time draft
C Sight draft --- True
D Order draft

Q: The largest market in the world for a single security is:

A the capital market

B the money market
C the treasury bill market --- True
D the federal funds market

Q: Components of SLR include ______

A Cash in safe
B Balance with SBP
C Investment in microfinance bank
D All of the above --- True

Q: A market in which competition among buyers and sellers sets the terms of trade is a:

A primary market
B forward market
C efficient market
D perfect market --- True
Q: A banking company can engage itself in which of the following businesses under section 7
of Banking Companies Ordinance, 1962?

A Borrowing, raising, or taking up of money

B The lending or advancing of money either upon or without security
C The granting and issuing of letters of credit
D All of the given options --- True
Q: All of the following are contents of the Articles of Association, under Banking
Companies Ordinance, 1962, EXCEPT:

A Transfer of shares
B Alteration of share capital
C Authorized capital --- True
 D Dividend

Q: After independence in 1947,

Pakistan used Indian currency notes with Pakistan stamped on them till 1948. ---
A
True
B Used British currency till first issuance of Pakistani currency,
C Immediately start issuing the Pakistani own currency i.e. coins and notes
D Used gold and silver as medium of exchange in Pakistan.

Q: Twenty rupee notes was introduced in Pakistan in:

A 1979
B 1998
C 2002
D 2005 --- True

Q: Pakistani currency was originally divided into16 'Aanas' and

A was decimalized on 1st January 1971 with one 'rupee' subdivided into 100 paisa.
B was decimalized on 1st January 1974 with one 'rupee' subdivided into 100 paisa.

C was decimalized on 1st January 1961 with one 'rupee' subdivided into 100 paisa.---
True
D was decimalized on 1st January 1948 with one 'rupee' subdivided into 100 paisa.

Q: One rupee note was issued by:

A Government of Pakistan till 1980 and then taken over by SBP --- True
B SBP from 1948
C Bank of India and then taken over by SBP in 1953
D Bank of India till establishment of SBP
Q: Two rupees coin was introduced in Pakistan in:

A 1979
B 1998 --- True
C 2002
D 2005

Q: Five thousand rupee notes was introduced in Pakistan in:

A 1979
B 2006 --- True
C 2002
D 2005

Q: Minor cant open account with bank without guardian because of:

A Lack of capacity to contract --- True

B Lesser level of intelligence
C Minor normally dont have any source of income

Q: Islamic Banking promote risk-sharing between provider of capital and user of funds.

A TRUE --- True

B False

Q: Which type of risk refers to the inability of the buyer to honor full payment of goods or
services rendered on the due date?

A Economic Risk
B Buyer's insolvency risk --- True
C Transit risk
D Currency risk

Q: Sovereign risk also known as:

A Political risk --- True

B Operation risk
C Currency risk

Q: A Cheque is valid for a period of:

A 6 months after date of issuance

B 6 months from date of endorsement
C 6 months after the date on cheque --- True
D 6 months after the issuance of cheque book

Q: In deferred payment L/C the payment will be made by the issuing bank to Exporter bank

A Immediately on receipt of documents

B After acceptance of documents
C After fixed tenure as per period of issuance L/C --- True

Q: Documentary collection are under:

A UCP-600
B URR-525
C URC-522 --- True

Q: When customer avails lockers facility, the relation between banker and customer is:

A Agent - Principal
B Bailor - Bailee --- True
C Debtor - Creditor
D Licenser - Licensee

Q: One who request the bank for issuance of L/C is known as:

A Importer --- True

B Seller/Exporter
C Factor
D Money changer
Q: In the 2010 version of INCOTERMS two new terms were introduced by ICC, which are:

A DNA & DAT

B DAP & CTR
C CPT & CIP
D DAP & DAT --- True

Q: The risk that goods may be stolen or damaged during shipment from the place of origin to
the place of the destination is known as:

A Economic Risk
B Buyer's insolvency risk
C Transit risk --- True
D Currency risk

Q: To avoid or minimize disputes and difficulties in trade, the ICC introduce the
INCOTERMS first time in

A 1933 --- True

B 1998
C 2010
D 2000

Q: In the 2010 version of INCOTERMS by ICC; four terms from the previous version were
deleted, which are:

A DDB, DAF, DDU & DDS

B DDU, DAF, DAP & DAT
C DAP, DAT, DAF & DES
D DAF, DDU, DEQ & DES --- True

Q: The bank which work as agent of the issuing bank and authorized to pay, incur deferred
 payment liability, accept bill of exchange and pay on maturity or negotiating the LC is:

A Confirming Bank
B Advising Bank
C Nominated bank --- True
D Paying Bank

Q: Potential threat of financial loss arising from uncertainty of legal proceeding or a change in
legislation is known as:

A Legal Risk --- True

B Buyer's insolvency risk
C Transit risk
D Country risk

Q: In the case of L/C, who is beneficiary:

A Importer
B Exporter/Seller --- True
C Collecting Bank
D Issuing Bank

Q: The bank which work as the agent bank of the issuing bank in the country of the exporter is
called:

A Confirming Bank
B Advising Bank --- True
C Nominated bank
D Paying Bank

Q: A _____ is a dealer in capital or more properly a dealer in money. He is an intermediate

party between the borrower and the lender.

A Borrower
B Banker --- True
C Dealer
D Lender

Q: Justice Billhache declared in my opinion a person becomes ______________ of a bank

when he goes to a bank with money or cheques and asks to have an account opened in his
name, and the bank accepts the money of cheque and is prepared to open an account in the
name of that person after he is entitled to be called a customer of the bank

A Banker
B Depositor
C Customer --- True
D None of the above

Q: INCOTERMS stand for:

A International Commerce Terms

B Institutional Commercial Terms
C International Commercial Terms --- True
D Intra-national Commercial Terms

Q: It is the right of the customer to draw cheques against his _________ balance

A Debit
B Credit --- True
C Zero
D Available

Q: The banker customer relationship can be terminated due to:

A notice by a customer
B order of court
C un-satisfactory operation
D All of the above --- True

Q: Which of the following has defined the banker as Any person carrying on a bonafide
 banking business in the United Kingdom is a banker?

A American Version
B United Kingdoms Version
C Finance Act, 1915 --- True
D Negotiable Instruments Act, 1881

Q: 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?

A Irrevocable confirmed letter of credit

B Revolving credit
C Transferable letter of credit --- True
D Red clause credit

Q A _____ lien is attached to some specific goods. It is a right to retain possession over
particular goods in connection with which the debt arose

A General
B Special
C Particular --- True
D None of the above

Q: Which of the following may be cancelled or modified after its date of issue, by the issuing
bank?

A Revocable letter of credit --- True

B Irrevocable letter of credit
C Irrevocable confirmed letter of credit
D Revolving credit revocable letter of credit
Q: Which of the following is NOT defined by the Negotiable Instrument Act, 1881?

A Banker
B Delivery
C Material alteration
D Notary public --- True

Q: In letter of credit, which of the following is payable as soon as it is presented for payment?

A Demand draft
B Time draft
C Sight draft --- True
D Order draft

Q: Who among the following is entrusted responsibilities of executing WILL?

A Agent
B Lawyer
C Executor --- True
D Heir

Q: All of the following are merits of Nationalization of banks, EXCEPT:

A Availability of funds to the government for meeting its social sector targets
B Equitable distribution of credit to the different sectors, industries and regions
C Centrally coordinated policy frame work

D Excessive government control leading to the decisions on non-professional

considerations --- True

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

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

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

C The Pakistan Banking Council (hereinafter referred to as the Council) shall stand
dissolved forthwith --- True
The President, subject to the control and directions of the Board, shall exercise powers of
D
management of the affairs of the bank

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

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

B The Federal Government may, if it deems necessary, appoint a Chairman of the Board
in respect of a bank --- True
C The safety of all deposits in banks shall stand guaranteed by the Federal Government

D The provisions of this Act and the vesting of the shares of the banks in the Federal
Government there under shall not in any way affect the status of the banks as bodies
corporate

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

A Management's credit process

B Management's credit philosophy --- True
C Management's credit risk
D Management's credit exposure

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

A Commercial invoice --- True

B Bill of lading
C Warranty of title
D Letter of indemnity

Q: 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?

A To accept deposits
B To provide storage and safe custody facilities
C To borrow and raise money and open bank accounts
D All of the given options --- True

Q: According to the section 30 of Banking Companies Ordinance, 1962, at the close of

business on any day, the assets in Pakistan of every banking company shall not be less in
value than such percentage of its time and demand liabilities in Pakistan as may be
prescribed by the State Bank from time to time provided that the percentage so prescribed
shall not exceed:

A 65% of time and demand liabilities

B 75% of time and demand liabilities
C 85% of time and demand liabilities --- True
D 95% of time and demand liabilities

Q: Which of the following refers to a person employed to do any act for another person or to
represent another person in dealing with third personal?

A Employee
B Agent --- True
C Representative
D Shareholder

Q: In documentary credit, which of the following banks is usually a foreign bank?

A Issuing bank
B Paying bank
C Advising bank --- True
D Confirming bank

Q: All of the following are types of financial market, EXCEPT:

A Foreign exchange markets

B Stock markets
C Bond markets
D Future markets --- True

Q: According to the Corporate and Industrial Restructuring Corporation Ordinance, 2000,

Customer means a person in whose name a deposit is held by which of the following?

A A Commercial Bank
B An Investment bank
C A Microfinance Institution --- True
D An Islamic Bank

Q: All of the following are examples of Negotiable Instruments, under the Negotiable
Instrument Act, 1881, EXCEPT:

A Promissory note
B Bill of exchange
C Cheque
D Bearer debentures --- True

Q: Which of the following represent individuals or companies?

A Public Agents
B Private Agents --- True
C General Agents
D Special Agents
Q: Which of the following refers to an obligation annexed to the ownership of property, and
arising out of a confidence reposed in and accepted by the owner, or declared and accepted
by him, for the benefit of another, or of another and the owner is the person who reposes or
declares the confidence?

A Agency
B Trust --- True
C Branch
D Sole ownership

Q: Which of the following terms is used under the Co-operative Societies and Co-operative
Banks (Repayment of Loans) Ordinance, 1966 for a loan which is not secured by
mortgage, pledge, hypothecation or assignment of such property of the borrower, as in the
case of a loan not exceeding five hundred thousand rupees?

A Unsecured Loan --- True

B Secured Loan
C Insufficiently Secured
D Insufficiently Unsecured

Q: According to the State Bank of Pakistan Act, 1956, "Member" refers to which of the
following?

A Member of the Local Board --- True

B Member of the Committee
C Member of the Legislature
D Member of the Bank

Q: Which of the following refers to rules that regulate the conduct of individuals, businesses,
and other organizations within society?

A Jurisprudence
B Law --- True
C Legal system
D Legal opinion
Q: If report of State Bank is not submitted with the application of stay order against winding
up to the High Court, the high court can extend a stay order for which of the following
Maximum periods?

A 15 Days
B 30 Days
C 45 Days --- True
D 60 Days

Q: An endorsement is said to be Restrictive endorsement, if it satisfies which of the following

conditions?

A If the endorser signs his name only

B If the endorser adds a direction to pay the amount mentioned in the instrument to, or to the
order of, a specified person

C If the endorser restricts or excludes the right to further negotiate the instrument ---
True
D If the endorser purports to transfer to the endorsee only a part of the amount payable

Q: Which of the following is included in "Financial Institutions" as per Prudential Regulation

issued by the State Bank of Pakistan?

A Banks --- True

B Development Financial Institutions (DFIs)
C Non-Banking Finance Companies (NBFCs)
D Insurance Companies

Q: A banking company can engage itself in which of the following businesses under section 7
of Banking Companies Ordinance, 1962?

A Borrowing, raising, or taking up of money

B The lending or advancing of money either upon or without security
C The granting and issuing of letters of credit
D All of the given options --- True
Q: All of the following are merits of Nationalization of banks, EXCEPT:
A Availability of funds to the government for meeting its social sector targets
B Equitable distribution of credit to the different sectors, industries and regions
C Centrally coordinated policy frame work

D Excessive government control leading to the decisions on non-professional

considerations --- True

Q: All of the following are included in the financial intermediaries, EXCEPT:

A Mutual Funds
B Pension Funds
C Stock Exchange --- True
D Credit Union

Q: According to the Section 4 of State Bank of Pakistan Act, 1956, which of the following is
the face value of the share of a Bank?

A Rs. 10
B Rs. 20
C Rs. 50
D Rs. 100 --- True

Q: As per Banking Companies Ordinance, 1962, the total suspension time of the operation of
all or any provision of Companies ordinance, 1962 should not exceed:

A Three months
B Six months
C Nine months
D One year --- True

Q: All of the following are contents of the Memorandum of unlimited company, under
Banking Companies Ordinance, 1962, EXCEPT:

A Name of the company

B Objects
C Limited liability of shareholders --- True
D Authorized capital

Q: The letter of credit includes all of the following documents, EXCEPT:

A A commercial invoice
B A transport document
C A certificate of origin
D A certificate of investment --- True

Q: According to Section 17 of Banking Companies Ordinance, 1962, the banking company

cannot create charge on which of the following?

A Paid up capital
B Issued capital
C Unpaid capital --- True
D Subscribed capital

Q: Which of the following refers to a business in which a person participates with his money
and another with his efforts or skill or both his efforts and skill and shall include unit, trust
and mutual fund by whatever name called?

A Musharika
B Modaraba --- True
C Istisna
D Ijara

Q: Short-term financial instrument used in the money market is known as:

A Document
B Paper
C Bond
D Bill --- True
 Q: How many parties are involved in a Cheque?

A Two
B Three --- True
C Four
D Five

Q: At the time of independence, how many branches of scheduled banks were there
in Pakistan?

A 457 branches

B 467 branches

C 487 branches --- True

D 497 branches

Q: According to Section 4 of State Bank of Pakistan Act, 1956, which of the following
should be the original Capital of the Bank?

A Rs. 20 Millions

B Rs. 30 Millions --- True

C Rs. 40 Millions

D Rs. 50 Millions

Q: A banking company can engage itself in which of the following businesses under
section 7 of Banking Companies Ordinance, 1962?

A Borrowing, raising, or taking up of money

B The lending or advancing of money either upon or without security

C The granting and issuing of letters of credit

D All of the given options --- True

Q: Which of the following has defined the banker as "Any person carrying on a
Bonafide banking business in the United Kingdom is a banker"?

A American version

B United Kingdom's version

C Finance Act, 1915 --- True

D Negotiable instruments Act, 1881

Q: Under Prudential Regulations, the vehicle to be utilized for commercial purposes

shall not be included in which of the following?

A SME financing

B Corporate financing

C Consumer financing --- True

D Micro financing

Q: Short term sale of Government securities with an agreement to repurchase the

securities at a higher price is called _______________.

A Federal fund

B Repo --- True

C Bankers acceptance

D Open market operation

Q: Which of the following is NOT the category of the Share Capital?

A Authorized capital

B Un-issued capital --- True

C Issued capital

D Retained capital/equity

Q: According to the Banking and Companies Ordinance, 1962, which of the following
refers to any company which transacts the business of banking in Pakistan?
A Microfinance Institution

B Banking Company --- True

C Investment Bank

D A corporate Body

Q: According to Section 23 of Banking Companies Ordinance, 1962, a subsidiary to

banking company can perform which of the following function(s)?

A To carry on of banking business strictly in conformity with Islam

B To carry on business of modaraba

C Such other purposes as are incidental to the business of banking

D All of the given options --- True

Q: An endorsement is said to be Restrictive endorsement, if it satisfies which of the

following conditions?

A If the endorser signs his name only

B If the endorser adds a direction to pay the amount mentioned in the instrument
to, or to the orderof, a specified person

C If the endorser restricts or excludes the right to further negotiate the

instrument --- True

D If the endorser purports to transfer to the endorsee only a part of the amount
payable

Q: How many foreign banks were there in Pakistan, at the time of independence?

A 09 banks

B 19 banks --- True

C 29 banks

D 39 banks