Class 2nd Year Banking Guess Paper Commerce

Important Questions: Section B: (Short Answer Questions) Define Credit Instruments? Describe the advantages of clearing houses? Differentiate inland and foreign Bill of Exchange? Differentiate a cheque and a bill of Exchange? State the kinds of bank account? What is a promissory note? State the parties to it? Describe the evaluation of modern banking? What is meant by cross cheque and name the parties to a cheque? Write the origin of the state bank of Pakistan? Differentiate Mortgage and Pledge? Define Endorsement and describe its kind? What is a bank draft? Explain? What do you know about E- Banking? Explain the purchasing power parity theory? List the various methods of credit control? Describe the procedure of opening a bnak account? Explain balance of Trade and balance of Payment? Explain the rate of foreign exchange? List the main item of Balance of Payment? What is the relationship between Schedule Bank and Control Bank? What is meant by Noting and Protesting? What are the safety measures for a bank to issue loans? Briefly describe the principles of investments by a bank? What is meant by dishonour cheque? Describe the sources and usage of Bank Funds? Define the kinds of mortgage and also describe Secure and Unsecured loans? Section C: (Detailed Answer Questions) What is foreign exchange? Why do foreign exchange rates fluctuate? Define a bank and describe the functions of a commercial bank? Define a central bank and describe the function of a central bank/ State bank of Pakistan? What is meant by Letter of credit and describe the procedure of opening a letter of credit? What is meant by bill of exchange and define the various kinds of bill of exchange? Describe the qualities of a Good Banking system? Explain the different kinds of a bank? Describe the methods of Credit COntrol by a Central Bank? Define a cheque and its kinds, and also describe the parties to a cheque?