Economics MCQs For Lectureship CSS PMS And NTS Part II

41 Which country developed banking system in the world?

UK

42 Which country when developed the system of chain banking?

USA in the mid of nineteenth century

43 Which country for the first time introduced the instrument of minimum legal cash reserve ratio for banks?

USA

44 In case of significant decrease in the demand for loans, banks are forced to

Adjust their portfolios         

45 What does open market operations means?

Buying and selling of government securities

46 Bank rate refer to the interest rate at which Central bank gives loans to whom?

 Commercial banks

47 What is the immediate effect of credit creation by banks?

Increase in money supply

48 Credit rationing is one of the instruments of which system?

Qualitative credit control

49 Variable reserve ratio is one of the instruments of what?

Quantitative credit control

50 Commercial banks have always to face a conflict between what?

Liquidity and profitability

You May Also Like: Economics MCQs For CSS PMS NTS And Lectureship Preparation Part III