Final exam B Introduction to banking copy copy

Final exam OF MODEL 2 OF Introduction to banking COURSE, 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 QUES

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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Q1 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)

Q2 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

Q3 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)

Q4 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

Q5 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 )

Q6 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

Q7 Central banks in Third World countries is controlled by :

a IMF

B) IBRD

C) none of the above

D) a and b

Q8 Central bank functions are divided into :

a Governments bank and bankers bank

b inventory management bank

c) customized marketing bank

d ) (b and c )

Q9 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

Q10 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

Q11Which of the following is not a type of banks?

(a) Commercial bank (c) Central bank

(b) Investment bank (d) bill of exchange

Q12 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

Q13 Which of the following are not of credit instrument

1 Commercial bank

2 Bill of exchange

3 Promissory note

4 Traveler cheque

Q14 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

Q15 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

Q16 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

Q17 Parties of Letter of credit include :

a applicant

b issuing bank

c beneficiary

d all of the above

Q18 Of the banks involved in letter of credit :

a Advising bank

b paying bank

c confirming bank

d (a,b, c)

Q19 Of the advantages of credit letter are :

a Exchange of ownership

b Capital formation

c Rate of employee turnover

d (a,b)

Q20 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)

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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