BNK601-MCQ Solved with Ref-03

Which of the following statements holds TRUE for law?

It is to redress wrongs

It ensures public order It is to maintain rights All of the given options LESSON 2 Significance of law: Law is to maintain rights, uphold justice and redress wrongs. Law ensures public order, balance, harmon , peace among the persons within the state and inter!states. "e can easil concei#e that in the absence of law and legal s stem there would ha#e been disorder, unrest and chaos all around us. Which of the following refers to U.S. dollars deposited in foreign branches of U.S. banks or in foreign banks o tside the United States!?

$ills of E%change

$an&ers' (cceptances )epurchase (greements E rodollars LESSON *

A banking compan" can engage itself in which of the following b sinesses nder section # of $anking %ompanies &rdinance' ()*+?

$orrowing, raising, or ta&ing up of mone

+he lending or ad#ancing of mone either upon or without securit +he granting and issuing of letters of credit All of the given options LESSON ,

,n which of the following financial markets' b "ers and-sellers agree to trade certain . antit" of commodit" for a specific price at a specified date in f t re?

E-uit .ar&et

O#er the /ounter .ar&et 0O+/1 / t re 0arket Secondar .ar&et LESSON 2 3orward /ontracts and 3utures .ar&et: 4nder 3orward /ontract, bu ers and5sellers agree to trade certain -uantit of commodit for a specific price at a specified date in future, contracts are formall made in commodities e%change mar&ets. Which of the following is 1&T the reg lation of paid2 p capital' s bscribed capital and a thori3ed capital and voting rights of share2 holders nder section (4 of $anking %ompanies &rdinance' ()*+?

+he subscribed capital of the compan is not less than one half of the authori6ed capital

+he capital of the compan consists of ordinar shares onl 5aid2 p capital sho ld be less than one half of the s bscribed capital +he #oting rights of an one shareholder, e%cept those of the 3ederal 7o#ernment or a 8ro#incial 7o#ernment do not e%ceed fi#e per cent of the total #oting rights of all the shareholders LESSON 99 At the time of independence' how man" branches of sched led banks were there in 5akistan?

*:; branches

*<; branches 46# branches *,; branches Ref7 In 8a&istan, before independence in .arch, 9,*; there were <29 scheduled ban& offices in the 4nited 8a&istan. Out of which 9** were located in $angladesh and there were 92= offices of non!scheduled ban&s.

Which of the following refers to a bank for the time being incl ded in the list of banks maintained nder s b2section 8(9 of Section :#; nder $anking %ompanies &rdinance' ()*+!?

Sched led $ank /ommercial $an& In#estment $an& 3inancial Intermediar LESSON > ?Scheduled ban&? means a ban& for the time being included in the list of ban&s maintained under subsection of Section 2;. Relationship between 5rincipal and Agent is known as which of the following?

$usiness relationship

3ormal relationship Agenc" relationship 8ersonal relationship LESSON ,

Which of the following st dies is the evol tion of law over a period of time?

(nal tical @urisprudence

<istorical = rispr dence Ethical @urisprudence $eha#ioral @urisprudence LESSON 2

Short term sale of >overnment sec rities with an agreement to rep rchase the sec rities at a higher price is called ???????????????.

3ederal fund

Repo $an&erAs acceptance Open mar&et operation LESSON * Short2term financial instr ment sed in the mone" market is known as7

Bocument

8aper $ond $ill LESSON *

According to Establishment of /ederal $ank for %o2&perative and reg lation of %o2&perative $anking Act' ()##' the term Time @iabilities! refers to which of the following?

Liabilities which are to be met on demand

@iabilities which are not demand liabilities Liabilities which are to be met in due course of time Liabilities which are contingent in nature LESSON > CBemand liabilitiesD means liabilities which must be met on demand, and Ctime liabilitiesD means liabilities which are not demand liabilities

Which of the following refers to An obligation anneAed to the ownership of propert"' and arising o t of a confidence reposed in and accepted b" the owner' or declared and accepted b" him' for the benefit of another' or of another and the owner is the person who reposes or declares the confidence!?

(genc

Tr st $ranch Sole ownership LESSON 9=

Which of the following are intermediate2term and long2term obligations iss ed b" large' high2. alit" corporations to finance plant and e. ipment spending?

$ills of E%change

$an&ers' (cceptances %orporate $onds Eurodollars LESSON * All of the following are the components of 5art ,,, 8S spension of $ siness and winding p of $anking %ompanies9 of $anking %ompanies &rdinance' ()*+' EB%E5T7 8ower to dispense with meetings of creditors, etc. $oo&ed depositorsA credits to be deemed pro#ed 8referential pa ments to depositors Special provisions to make calls on contrib tories LESSON ; All of the following are t"pes of financial market' EB%E5T7 3oreign e%change mar&ets Stoc& mar&ets $ond mar&ets / t re markets LESSON 2

All of the following are demerits of 1ationali3ation of banks' EB%E5T7

E%cessi#e go#ernment control leading to the decisions on non professional considerations

E. itable distrib tion of credit to the different sectors' ind stries and regions Neglect of personali6ed ser#ices to the customers .ismanagement leading to alarming si6e of non!performing loans portfolio

LESSON < /ons: ! E%cessi#e go#ernment control leading to the decisions on non professional considerations. ! Lac& of fair mar&et competition leading to absence of a#ailabilit of inno#ati#e and di#ersified products to the customers. ! Neglect of personali6ed ser#ices to the customers. ! .ismanagement leading to alarming si6e of nonperforming loans portfolio. Which of the following is also known as Repos?

$ills of E%change

$an&ers' (cceptances Rep rchase Agreements Eurodollars LESSON *

Which of the following terms is 1&T defined b" the %ompanies &rdinance' ()64?

8aid!up capital

Bebenture Cividend 8reference share LESSON 92 +he term di#idend has not been defined in the /ompanies Ordinance. Which of the following markets ma"' at preliminar" stage' be termed as market for bonds and stock market!?

E-uit .ar&et

/inancial 0arket 8rimar .ar&et Secondar .ar&et LESSON 2

According to Section :* of $anking %ompanies &rdinance' ()*+' the /ederal >overnment can iss e a certificate of 0oratori m' pon an application of State $ank' for which of the following 0AB,0U0 periods?

+hree .onths

SiA 0onths Nine .onths One Eear LESSON 99 Which of the following is 1&T the kind of shares iss ed b" the compan" nder @aw?

Ordinar shares

8reference shares Beferred shares / t re shares LESSON 99

The word $ank! is derived from which of the following?

$ancus $an. e $ench (ll of the gi#en options LESSON : Which of the following st dies theor" of legislation' precedent and c stoms?

Anal"tical = rispr dence

Fistorical @urisprudence Ethical @urisprudence $eha#ioral @urisprudence LESSON 2

All of the following are provisions regarding transfer of ownership of banks' nder The $anks 81ationali3ation9 Act' ()#4' EB%E5T7

+he ownership, management and control of all ban&s shall stand transferred to, and #est in, the 3ederal 7o#ernment on the commencing da The /ederal >overnment ma"' if it deems necessar"' appoint a %hairman of the $oard in respect of a bank +he safet of all deposits in ban&s shall stand guaranteed b the 3ederal 7o#ernment +he pro#isions of this (ct and the #esting of the shares of the ban&s in the 3ederal 7o#ernment there under shall not in an wa affect the status of the ban&s as bodies corporate. LESSON < 222222St dies histor" of law and evol tion of law over a period of time and also amendments' introd ction of new principles of law.

(nal tical @urisprudence.

Social @urisprudence. <istorical = rispr dence. Ethical @urisprudence. LESSON 2

According to U%5 *DD' which of the following refers to an" arrangement' however names or described' that is irrevocable and thereb" constit tes a definite ndertaking the iss ing bank to honor a compl"ing presentation?

/redit @etter of credit /onfirmation Fonor LESSON , Which of the following is the ass mption of s pport for the compan" in case of a crisis?

Negati#e effect

Gariable effect 5ositive effect Brear effect Ref7 8ositi#e effect: assumption of support for the compan in case of a crisis. H Negati#e effect: spillo#er of a crisis to the compan .