Question 1 :

Equity is the rights of creditors on the banks.

Select one:

a. False

b. True

Question 2:

Which of the followings is NOT a primary function of Banks?

Select one:

a. Locker facility

b. Accepting deposits

c. Advancing Loans

d. Transferring Funds

Question 3:

Saving deposits have higher interest rates and liquidity than time deposits.

Select one:

a. False

b. True

Question 4:

Which of the followings is an example of Interest Revenues?

Select one:

a. Interest for Long Term Debts

b. Interest for Saving Deposits

c. Interest for Fed Funds Sold and Securities Purchased

d. Interest for MMDA

Question 5:

If assets of the bank increase, then sources decrease.

Select one:

a. True

b. False

Question 6

Al-Maha Bank accepts deposits with 10% rate for 5 years. Two years later, the rates have fallen to 8%. Al Maha bank is open to

Select one:

a. Equity Price Risk

b. Operational Risk

c. Interest Rate Risk

d. Foreign Exchange Risk

Question 7:

A cashier in a branch of ABC bank transferring some amount of banks money to his account. ABC Bank is more likely to face .

Select one:

a. Interest Rate Risk

b. Operational Risk

c. Credit Risk

d. Liquidity Risk

Queston 8

Which of the followings is an important factor that leads to the banking system?

Select one:

a. Innovative and growing financial products

b. Change in Financial Markets and real sector investments

c. Contribution of skilled labor force

d. Internationally accepted accounting regulations

Question 9

Which of the followings is NOT an example of Interest Expenses?

Select one:

a. Interest for MMDA

b. Interest for Saving Deposits

c. Interest for Deposits at Other Banks

d. Interest for Fed Funds Purchased and Securities Sold

Question 10

Assets can be higher than sources in banks.

Select one:

a. True

b. False