Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the bank’s screening process The above statement applies to ?

Related Mcqs:

1. Bank loans are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments. What these loans are called____________?

   A. Rearranged loans
   B. Rescheduled loans
   C. Altered loans
   D. None of these

2. Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?

   A. Rs 4,000
   B. Rs 5,000
   C. Rs 1,000
   D. Rs 0

3. What can a central bank increase in order to reduce consumer borrowing ?

   A. commercial bank deposits
   B. government bank deposits
   C. government spending
   D. interest rates
   E. None of these

4. International trade in goods and services is sometimes used as a substitute for all of the following except ?

   A. International movements of capital
   B. International movements of labor
   C. International movements of technology
   D. Domestic production of different goods and services

5. The rate at which a firm can substitute capital for labour and hold output constant is the ?

   A. marginal rate of factor substitution
   B. marginal rate of substitution
   C. law of diminishing marginal returns.
   D. marginal rate of production

6. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

7. What is called that company which make loans to individuals, while not receiving deposits like a bank ?

   A. Cooperative company
   B. Finance corporation
   C. Limited company
   D. Finance company

8. The bank established for loans to very small enterprises in Pakistan is called_______________?

   A. Micro Finance Bank
   B. Moderba Bank
   C. SME- Bank
   D. First MINI Bank

9. Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were known as ?

   A. Structural adjustment loans
   B. sectoral adjustment loans
   C. internal adjustment loans
   D. external leverage loans

10. A development bank based in London, which loans funds to governments of Eastern Europe and the former Soviet Union is the ?

    A. Transitional Monetary Fund
    B. World Bank
    C. European Bank for Reconstruction and Development
    D. OECD