final exam a introduction to banking copy

EXAMS AND ANSWER PAPER OF introduction to banking COURSES, IT INCLUDES TWO NODELS OF FINAL EXAMS AND TWO MODELS OF THE PERFECT ANSWERS OF THESE EXAMS .tHESE EXAMS ARE OF DIFERENT TYPES OF MCQ QUESTIONS AND TRUE AND FALSE QUESTIONS

Final Examination (Questions Sheet) Department: Model No: A Student Name

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Course No: Course Name: Introduction to Banking

Level: 3

Part One: The MCQ Questions (2 Marks per Question)

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Q1Which of the following is not a type of banks?

(a) Commercial bank (c) Central bank

(b) Investment bank (d) bill of exchange

Q2 Which of the following is not a type of cheque?

(a) Bill of exchange (b) Bearer cheque

(c) Head of HR (d) none of the above

Q3 Which of the following are not of credit instrument

1 Commercial bank

2 Bill of exchange

3 Promissory note

4 Traveler cheque

Q4 Types of General crossing cheque doesn’t include:

(a) General and special crossing

(b) Plain crossing and restrictive crossing

(c) Mass customization

(d) All above

Q5 Travelers cheque :

a are used to avoid risk of having cheque

b Bill of exchange

c Plain crossing and restrictive crossing

d Culture ,social , and personal factors

Q

6 2.Credit Letter is defined as :

a External forces outside of managers’ control

b a document issued by financial institution on behalf of a client to pay a beneficiary

c Connections with Marketing Partners

d Connections with the World Around Us

Q7 Parties of Letter of credit include :

a applicant

b issuing bank

c beneficiary

d all of the above

8 Of the banks involved in letter of credit :

a Advising bank

b paying bank

c confirming bank

d (a,b, c)

Q9 Of the advantages of credit letter are :

a Exchange of ownership

b Capital formation

c Rate of employee turnover

d (a,b)

Q10 Bank draft is :

a The organization’s founder: vision and mission

b written order a one branch of bank to another branch of the same bank to pay certain amount

of money on demand

c The behavior of top management

d (a,b, c)

Q11 Treasury bill is :

a. promissory note issued by government under discount for a specified period stated therein

b written order a one branch of bank to another branch of the same bank

c Materials symbols

d (a,b, c)

Q12 AD-HOCS is :

a type of treasury bill

b “Location, location, location.”

c “Watch your costs at all cost.”

d “An overall evaluation of the company’s strengths, Weaknesses , Opportunities and Threats

Q13 Banknote is :

a issued by central bank

b A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note

c legal tender; along with coins

d (a,b, c)

Q14 Monetary policy :

a Adjusting interest rates (to control inflation) and the money supply

b Governments attempt to manage fluctuations in economic activity through taxation and expenditure

c concerned with banker’s bank

d A and C

Q15 Fiscal policy :

a Microenvironment force (public )

b Governments attempt to manage fluctuations in economic activity through taxation and expenditure

c concerned with government bank

d (b and c )

Q16 Central bank controls :

a fiscal policy and not monetary policy

b fiscal policy and monetary policy

c relationship channel between costumer

d economic factors that affect consumer buying power and spending patterns

Q17 Central banks in Third World countries is controlled by :

a IMF

B) IBRD

C) none of the above

D) a and b

Q18 Central bank functions are divided into :

a Governments bank and bankers bank

b inventory management bank

c) customized marketing bank

d ) (b and c )

Q19 Monopoly of notes issue and controller of credit are

a functions of Commercial bank

b functions of Central bank and Commercial bank

c functions of Central bank only

d economic factors that affect consumer buying power and spending patterns

Q20 We mean by Custodian of foreign exchange

a The profit earned from investment bank

b The profit earned by each country goods and services export

c TQM profit

d Management profit

Part Two: The True/False Questions (2 Masrk per Question )

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Q1 Taylor’s Scientific Management Principles includes :Developing a science

for each element of an individual’s work, which will replace the old

rule-of-thumb method

- T - f Q2 Quantitative Approach : is evolved from mathematical and statistical

methods developed to solve military logistics and quality control problems

- T - f Q3 Lender of last resort lies under the function of government bank

- T - f Q4 Loans are utilized to support central bank

- T - f Q5 Advances are funds provided by the bank to a specific entity for a specific

purpose ,it is repayable after long period

- T - f Q6 Loans are considered as debt while advances are credit facility

- T - f Q7 External Environment are those factors and forces outside the

organization that affect the organization’s performance

- T - f Q8 Types of security include: personal, collateral, tangible and

primary.

T - f

Q9 The item that secures the loan is called collateral

T - f

Q10 An unsecured loan is a loan backed only by the reputation and

creditworthiness of the borrower

- T - f Lecturer Name: Signature

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