Quiz  /  Commercial Banks Class 12 MCQ Questions With Answers

  • 1. 
    The market value of all share or equity issued by a company is called it's...

  • Money for Investment
  • Return on Capital
  • Total Equity
  • Market Capitalisation

  • 2. 
    Credit Unions

  • These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
  • These are also known as savings and loans associations or building societies.
  • This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
  • This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.

  • 3. 
    Which is the best description of a 'money market'

  • Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money.
  • Any place where buyers and sellers come together.
  • The money used to pay for goods and services
  • A bank at which people can open an account at.

  • 4. 
    Businesses and organisations which specialise in providing services such providing easy ways to make payment and store money are best described as 'financial institutions'.

  • True
  • False

  • 5. 
    The largest stock exchange in the world is...

  • LSE
  • Korea Exchange
  • Shanghai Stock Exchange
  • NYSE

  • 6. 
    Governments can raise money to finance public spending through the sale of...

  • James
  • Bonds
  • Shares
  • Stocks

  • 7. 
    The majority of sales on a stock exchange are of stocks that are being resold subsequent times after their very first purchase...

  • True
  • False

  • 8. 
    How much would I pay back in total for this loan?

  • £5788.13
  • £5512.50
  • £5250
  • £788.13

  • 9. 
    Interest is...

  • A reward for saving and a reward for borrowing
  • A cost of saving and a reward for borrowing
  • A cost of borrowing and a cost of saving
  • A reward for saving and a cost of borrowing

  • 10. 
    Which statement about financial matters is correct?

  • A
  • B
  • C
  • D

  • 11. 
    _____ refer to the deposits of money made by public with non-banking companies.

  • Public Deposits
  • Trade Credit
  • Bank Overdraft
  • Cash Credits

  • 12. 
    Trade credit includes consumer credit or instalment credit.

  • True
  • False

  • 13. 
    Loans granted for immediate need are called ____

  • Contingency loan
  • Transactional loan

  • 14. 
    Under secured cash credit, the borrower submits promissory note, which is signed by two or more securities.

  • True
  • False

  • 15. 
    Trade Credit is also known as 'Mercantile Credit'

  • True
  • False

  • 16. 
    Interest is charged on the amount actually overdrawn and not on the amount sanctioned by the bank.

  • True
  • False

  • 17. 
    _____ implies procuring cash from a bank in exchange for credit instruments.

  • BAnk Overdraft
  • Cash Credit
  • Bills Discounting
  • None of these

  • 18. 
    _______ direct advance made in lump sum which is credited to a separate loan account in the name of the borrower.

  • Loan
  • Cash Credit
  • Bank Overdraft
  • Both A & B

  • 19. 
    Under ______ borrower withdraws the full amount in cash immediately & undertakes to repay it in one or more installments.

  • Cash Credit
  • Loan
  • Bank overdraft
  • None of these

  • 20. 
    Under Cash Credit interest is to be paid on the whole amount from the date of sanction.

  • True
  • False

  • 21. 
    ____ refers to the credit extended by one business firm to another as incidental to sale or purchase of goods & services.

  • Cash Credit
  • Bills Discounting
  • Installment Credit
  • Trade Credit

  • 22. 
    _____ is a running account from which the amounts can be withdrawn & paid back from time to time, subject to the stipulated amount.

  • Loan
  • Cash credit
  • Bank overdraft
  • All of above

  • 23. 
    When the cash is not backed up by any security, it is known as ______.

  • Clean Cash Credit
  • Secured Cash Credit
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