ZTBL Past Papers MCQ’S

ZTBL Past Paper MCQ’s Appearing in MCQ’s Test

1. What is the primary function of a commercial bank?

a) Issuing currency
b) Providing loans and accepting deposits
c) Regulating monetary policy
d) Managing government budgets
Correct answer: b) Providing loans and accepting deposits

2. Which of the following is not a type of bank account?

a) Current account
b) Fixed deposit account
c) Mutual fund account
d) Savings account
Correct answer: c) Mutual fund account

3. What is the full form of 'ATM'?

a) Automated Teller Machine
b) Automated Transaction Machine
c) Automated Transfer Money

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 d) All Time Money
Correct answer: a) Automated Teller Machine

4. What does 'KYC' stand for in banking terminology?

a) Know Your Currency
b) Know Your Credit
c) Know Your Customer
d) Keep Your Credit
Correct answer: c) Know Your Customer

5. Which of the following is not a function of the State Bank of Pakistan?

a) Issuing currency
b) Formulating monetary policy
c) Regulating commercial banks
d) Managing fiscal policy
Correct answer: d) Managing fiscal policy

6. What is the minimum age requirement for opening a bank account in Pakistan?
a) 16 years
b) 18 years
c) 21 years
d) 25 years
Correct answer: b) 18 years

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7. Which of the following is an example of a demand deposit account?
a) Fixed deposit account
b) Savings account
c) Current account
d) Certificate of deposit
Correct answer: c) Current account

8. Which bank is known as the "Banker's Bank"?

a) National Bank of Pakistan
b) State Bank of Pakistan
c) Habib Bank Limited
d) United Bank Limited
Correct answer: b) State Bank of Pakistan

9. Which of the following is not a method of electronic funds transfer in Pakistan?

a) RTGS (Real Time Gross Settlement)
b) EFT (Electronic Funds Transfer)
c) SWIFT (Society for Worldwide Interbank Financial Telecommunication)
d) FIB (Fast Interbank Fund Transfer)
Correct answer: d) FIB (Fast Interbank Fund Transfer)

10. What is the purpose of a 'cheque' in banking?

a) To withdraw cash from an ATM
b) To transfer funds between accounts

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 c) To authorize the payment of a specific amount of money
d) To apply for a loan
Correct answer: c) To authorize the payment of a specific amount of money

11. Which of the following is not a credit rating agency in Pakistan?

a) PACRA (Pakistan Credit Rating Agency)
b) CRISIL (Credit Rating Information Services of India Limited)
c) JCR-VIS Credit Rating Company Limited
d) VIS (Value Investment Services)
Correct answer: b) CRISIL (Credit Rating Information Services of India Limited)

12. What is the purpose of the 'CIB' (Credit Information Bureau) in Pakistan?
a) To provide information on credit history of individuals and businesses
b) To regulate stock exchanges
c) To monitor inflation rates
d) To manage foreign exchange reserves
Correct answer: a) To provide information on credit history of individuals and
businesses

13. Which of the following is a function of 'SWIFT' in banking?

a) Providing loans to small businesses
b) Facilitating international money transfers
c) Issuing credit cards
d) Managing fixed deposit accounts

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 Correct answer: b) Facilitating international money transfers

14. What does 'IBAN' stand for?

a) International Bank Account Number
b) International Business Account Number
c) Internal Banking Authorization Number
d) International Billing and Accounting Network
Correct answer: a) International Bank Account Number

15. Which of the following is not a type of bank account in Pakistan?

a) Islamic banking account
b) Commercial banking account
c) Investment banking account
d) Microfinance banking account
Correct answer: c) Investment banking account

16. What is the purpose of 'NIFT' in Pakistan?

a) To provide loans to small businesses
b) To facilitate electronic clearing of inter-bank transactions
c) To regulate interest rates
d) To manage foreign exchange reserves
Correct answer: b) To facilitate electronic clearing of inter-bank transactions

17. Which bank is the oldest in Pakistan?

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 a) Habib Bank Limited
b) National Bank of Pakistan
c) United Bank Limited
d) Allied Bank Limited
Correct answer: a) Habib Bank Limited

18. What is the function of 'LC' (Letter of Credit) in international trade?

a) To provide loans to exporters
b) To ensure payment to the exporter upon fulfilling certain conditions
c) To regulate import duties
d) To manage foreign exchange rates
Correct answer: b) To ensure payment to the exporter upon fulfilling certain
conditions

19. Which of the following is not a component of Basel III framework?

a) Capital Adequacy Ratio
b) Liquidity Coverage Ratio
c) Leverage Ratio
d) Gross Domestic Product
Correct answer: d) Gross Domestic Product

20. What is the purpose of 'IBFT' (Inter Bank Funds Transfer) in Pakistan?
a) To regulate interest rates
b) To facilitate electronic transfer of funds between different banks

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 c) To manage government budgets
d) To provide investment advice
Correct answer: b) To facilitate electronic transfer of funds between different
banks

21. Which of the following is not a type of banking risk?

a) Credit risk
b) Market risk
c) Operational risk
d) Fiscal risk
Correct answer: d) Fiscal risk

22. What is the purpose of 'CRR' (Cash Reserve Ratio) in Pakistan?

a) To regulate interest rates
b) To maintain liquidity in the banking system
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To maintain liquidity in the banking system

23. Which of the following is a characteristic of Islamic banking?

a) Charging interest on loans
b) Investing in unethical businesses
c) Sharing profits and losses with customers
d) Offering fixed interest rates on deposits

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 Correct answer: c) Sharing profits and losses with customers

24. What is the purpose of 'FATF' in international finance?

a) To regulate interest rates
b) To combat money laundering and terrorist financing
c) To manage foreign exchange reserves
d) To provide loans to developing countries
Correct answer: b) To combat money laundering and terrorist financing

25. What does 'LTV' stand for in banking?

a) Loan to Value ratio
b) Loan Transaction Verification
c) Legal Tender Value
d) Loan Transfer Validation
Correct answer: a) Loan to Value ratio

26. Which of the following is a function of 'IMF' (International Monetary Fund)?

a) Issuing currency
b) Regulating stock markets
c) Providing financial assistance to member countries
d) Managing retail banking operations
Correct answer: c) Providing financial assistance to member countries

27. What is the purpose of 'FDI' (Foreign Direct Investment) in an economy?

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 a) To regulate interest rates
b) To encourage domestic investment
c) To control inflation
d) To facilitate international trade
Correct answer: b) To encourage domestic investment

28. Which of the following is a requirement for opening a bank account in

Pakistan?
a) National Identity Card (NIC)
b) Passport
c) Driving License
d) Birth Certificate
Correct answer: a) National Identity Card (NIC)

29. What is the purpose of 'PBOC' (People's Bank of China)?

a) To regulate interest rates in China
b) To manage foreign exchange reserves
c) To oversee monetary policy in China
d) To provide loans to small businesses
Correct answer: c) To oversee monetary policy in China

30. Which of the following is not a function of the Securities and Exchange
Commission of Pakistan (SECP)?
a) Regulating stock exchanges
b) Protecting investors' interests

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 c) Regulating commercial banks
d) Ensuring transparency in capital markets
Correct answer: c) Regulating commercial banks

31. What is the purpose of 'FDIC' (Federal Deposit Insurance Corporation) in the
United States?
a) To regulate interest rates
b) To insure bank deposits
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To insure bank deposits

32. Which of the following is a function of 'NBP' (National Bank of Pakistan)?

a) Regulating monetary policy
b) Providing loans to small businesses
c) Issuing currency
d) Facilitating government transactions
Correct answer: d) Facilitating government transactions

33. What does 'ROA' stand for in banking?

a) Return on Assets
b) Rate of Accumulation
c) Return on Allocation
d) Revenue of Accounts

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 Correct answer: a) Return on Assets

34. Which of the following is a function of 'IBRD' (International Bank for

Reconstruction and Development)?
a) Providing loans to developing countries for infrastructure projects
b) Regulating interest rates globally
c) Managing foreign exchange reserves
d) Facilitating international trade agreements
Correct answer: a) Providing loans to developing countries for infrastructure
projects

35. What is the purpose of 'LCR' (Liquidity Coverage Ratio) in banking regulation?
a) To regulate interest rates
b) To ensure banks have enough high-quality liquid assets to cover short-term
obligations
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To ensure banks have enough high-quality liquid assets to
cover short-term obligations

36. Which of the following is a function of 'CDB' (China Development Bank)?

a) Regulating monetary policy in China
b) Providing loans for infrastructure projects
c) Issuing currency in China
d) Managing foreign exchange reserves

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 Correct answer: b) Providing loans for infrastructure projects

37. What is the purpose of 'SWAP' in banking?

a) To exchange foreign currencies at predetermined rates
b) To provide loans to small businesses
c) To regulate stock markets
d) To manage foreign exchange reserves
Correct answer: a) To exchange foreign currencies at predetermined rates

38. Which of the following is not a component of a bank's balance sheet?

a) Assets
b) Liabilities
c) Equity
d) Revenue
Correct answer: d) Revenue

39. What is the purpose of 'SME' (Small and Medium Enterprises) financing by
banks?
a) To regulate interest rates
b) To provide financial support to small businesses
c) To manage foreign exchange reserves
d) To facilitate international trade
Correct answer: b) To provide financial support to small businesses

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40. Which of the following is not a type of risk faced by banks?
a) Market risk
b) Liquidity risk
c) Interest rate risk
d) Political risk
Correct answer: d) Political risk

41. What is the purpose of 'ACH' (Automated Clearing House) in banking?

a) To regulate interest rates
b) To facilitate electronic funds transfer between banks
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To facilitate electronic funds transfer between banks

42. Which of the following is not a function of 'ADB' (Asian Development Bank)?
a) Providing loans for infrastructure projects in Asia-Pacific region
b) Regulating monetary policy in member countries
c) Facilitating regional cooperation and integration
d) Promoting sustainable economic growth
Correct answer: b) Regulating monetary policy in member countries

43. What does 'EMI' stand for in banking?

a) Equal Monthly Installment
b) Electronic Money Institution

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 c) Effective Market Index
d) Emerging Market Investment
Correct answer: a) Equal Monthly Installment

44. Which of the following is not a characteristic of 'Islamic banking'?

a) Charging interest on loans
b) Prohibition of interest (Riba)
c) Sharing profits and losses
d) Ethical investment principles
Correct answer: a) Charging interest on loans

45. What is the purpose of 'IFC' (International Finance Corporation)?

a) Regulating monetary policy globally
b) Providing loans to small businesses
c) Promoting private sector investment in developing countries
d) Managing foreign exchange reserves
Correct answer: c) Promoting private sector investment in developing countries

46. Which of the following is a function of 'IBA' (Institute of Bankers Pakistan)?

a) Issuing currency
b) Providing loans to small businesses
c) Conducting banking examinations and training programs
d) Managing foreign exchange reserves
Correct answer: c) Conducting banking examinations and training programs

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47. What is the purpose of 'SOPs' (Standard Operating Procedures) in banking?
a) To regulate interest rates
b) To ensure consistency and efficiency in bank operations
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To ensure consistency and efficiency in bank operations

48. What is the function of 'LC' (Letter of Credit) in international trade?

a) To provide loans to exporters
b) To ensure payment to the exporter upon fulfilling certain conditions
c) To regulate import duties
d) To manage foreign exchange rates
Correct answer: b) To ensure payment to the exporter upon fulfilling certain
conditions

49. What is the purpose of 'FDIC' (Federal Deposit Insurance Corporation) in the
United States?
a) To regulate interest rates
b) To insure bank deposits
c) To manage foreign exchange reserves
d) To provide loans to small businesses
Correct answer: b) To insure bank deposits

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50. Which of the following is a function of 'NBP' (National Bank of Pakistan)?
a) Regulating monetary policy
b) Providing loans to small businesses
c) Issuing currency
d) Facilitating government transactions
Correct answer: d) Facilitating government transactions

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