A. State Bank
B. National Bank
C. Both of them
D. None of them
Related Mcqs:
- Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?
A. assets
B. deposits
C. loans
D. government bonds - For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
A. decrease the money supply
B. increase the money supply
C. increase the demand for money
D. decrease the demand for money - 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 - Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?
A. rise by an amount that depends on the bank’s reserve ratio
B. rise by less than the amount of the deposit
C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
D. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
E. be unchanged - Central bank of Pakistan is ________________?
A. State Bank
B. National Bank
C. Both of them
D. None of them - Which of the following policy actions by a central bank is likely to increase the money supply ?
A. Increasing the refinancing rate
B. All of these will increase the money supply
C. Buying government bonds in open market operations
D. Increasing reserve requirements - The system under which a country’s currency is exchangeable for a fixed weight of gold on demand at central bank is called ?
A. God standard system
B. Gold based system
C. Bullion standard system
D. None of the above - A central bank or monetary authority hold foreign currency for the purpose of exchange intervention and the settlement of intergovernmental claims. Term the currency ?
A. Reserve currency
B. Hot currency
C. Pegged currency
D. Hard currency - Central bank’s rate of lending to commercial banks is called ?
A. Interest rate
B. Discount rate
C. Money rate
D. Control rate - 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
