Thursday, January 27, 2011

BNK604 Current Quiz


Which one of the following introduced banking regulations?
State bank
Government
Securities & exchange commission
International chamber of commerce
Ref: the Government introduced banking regulations that allowed the establishment of commercial banks. 

Long term loans are provided for the period of: 
3 years
5 years
7 years
10 years

Lecture # 37 
Banks are providing three types of loans; short-term (upto 18 months), medium-term (1.5 years to 5 years) and long-term (5 – 7 years). 

Which is the most forceful activity for commercial banks?
Leasing
Providing insurance services
Commercial lending
Financial services
Lecture # 15
Commercial Lending: For centuries, the banking industry only dealt with businesses, notconsumers. Commercial lending today is a very intense activity, with banks carefully analyzing the financial condition of their business clients to determine the level of risk in each loan transaction. 


What could be the best tool in the hands of investors in order to avoid frauds? 

Investor’s willingness
Investing company’s good will
Get borrowed money
Get information
Lecture # 25
Investment Fraud: Information is an investor's best tool when it comes to investing wisely  and avoiding fraud. And the best way to gather information is to ask questions- about both the investment and the person or firm selling it. 


Which of the following party is responsible to take risk under the principal risk?
Bank itself
Bank’s agents
Trader itself
Trader’s agents
Lecture # 28
The primary function of an investment bank is buying and selling products both on behalf of the bank's clients and also for the bank itself. Banks undertake risk through proprietary  trading, done by a special set of traders who do not interface with clients and through Principal Risk. 


Certain fixed expenses which are built into their per share net asset value are known as:
Costs of doing business
Amount of investment
Marketing costs
Cost of brokers
Lecture # 25
All mutual funds, including no-load funds, have certain fixed expenses that are built into their per share net asset value. These expenses are the actual costs of doing business. 


Which of the following is the party NOT involved in pay order?
Buyer
Drawee branch
Payee
Issuing bank
Lecture # 20
Parties Involved
1. Purchaser
2. Issuing / Paying Branch
3. Payee


Banks of issue" are the banks that issue _________ as legal tender.
Currency
Coins
Banknotes
Bills
Lecture # 2
A commercial bank accepts deposits from customers and in turn makes loans, even in excess of the deposits; a process known as fractional-reserve banking. Some banks  (called Banks of issue) issue banknotes as legal tender. 


Which of the following is a function of State Bank of Pakistan?
Fiscal policy
Accepting deposits
Advance loans to individuals
Monetary policy
Lecture # 2
A central bank, reserve bank or monetary authority, is an entity responsible for the monetary policy of its country. 

To get an insurer’s underwriting performance we combine which of the following ratios?
Loss ratio + expenses ratio
Earning ratio – expense ratio
Expense ratio + earning ratio
Loss ratio + earning ratio
Lecture # 35
An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added  to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. 


Which of the following is also known as Security Market?
Insurance market
Commodity market
Capital market
Bond market
Ref: The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds
.

Which one of the following department conducts Monetary Policy survey?
Banking inspection department
Finance department
Legal services department
Economic policy department
Lecture # 9
Economic Policy Department is primarily engaged in eight fundamental activities. These
include:
• Preparation of Monetary Policy Statement
• Preparation of Monetary Surveys


How many microfinance banks are working in Pakistan?
3
5
7
9
Ref:
1. ROZGAR MICROFINANCE BANK LIMITED
2. NETWORK MICROFINANCE BANK LIMITED
3. TAMEER MICRO FINANCE BANK LIMITED
4. PAK OMAN MICROFINANCE BANK LIMITED
5. THE FIRST MICRO FINANCE BANK LIMITED

.



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