IMPORTANT QUESTIONS FOR MONEY, BANKING & FINANCE (B.COM I)

Money:1. What is Barter System? What are its Inconveniences and how money removes the difficulties

of the Barter System? (A03, A12)2. What are the different stages in the evaluation of money? Discuss Qualities of Good Money

(A04, A06, A11, A13 1/2)3. Define Money. What are the functions of Money? (A08, A09)4. Define Paper Money Also explain the merits and demerits of Paper Money. (A04, A07, A09, A12,

A13)5. What are the different principles and methods of Note Issue? Also Discuss their advantages and

disadvantages.(A06)6. Define and explain the Quantity Theory of Money. (A11)7. Define Trade Cycle and explain its different phases & Characteristics. (A07, A11, A12)8. What is Trade Cycle? Explain its causes and remedies. (A10, A13)9. What are the causes and remedies of Inflation? (A04, A06)10. Define the followings. i. Deflation ii. Reflation iii. Disinflation iv. Stagflation

Banking:11. Explain kinds of Banks with reference to Pakistan. (A03, A07, A10)12. Define Bank and Customer. Explain the Relationship between Banker and Customer. (A13)13. What is Commercial Bank? Explain the functions of modern commercial bank. (A06, A08,

A11)14. Discuss the credit creation process of Commercial banks. Also state their Limitations. (A11,

A13)15. What are the different types of Advances/Loans offered by commercial bank? (A06)16. What is Letter of Credit? Explain the Procedure for Opening Letter of Credit. (A04, A09)17. Explain the kinds of Letter of Credit. (A11, A13)18. Discuss the situation in which a bank can refuse to honor a Cheques. (A02, A03, A05, A10 1/2)19. Define Negotiable Instruments. Why these are called negotiable? Differentiate between

Promissory Note, Bill of Exchange and Cheque. (A09, A11)20. What is meant by Central Bank? Explain its functions and objectives in detail. OR

What are the different functions performed by State Bank of Pakistan. (A04, A05, A06, A07, A8, A09, A13)

21. Differentiate between Central bank and Commercial Bank. (A10, A12)22. Define Monetary Policy and also discuss its objectives. How Central Bank control credit in the

country. (A03, A10, A12)23. Discuss the “Privatization of Banks” in Pakistan. What are its advantages and disadvantages?

(A04, A05)24. Define Foreign Exchange? What are the differenct rates of foreign exchange. How the rate of

foreign exchange is determined through demand of supply. (A07, A10)25. Discuss Money Market and Capital Market and differentiate between Capital Market and

Money Market. (A05, A08, A09)

Finance:26. Explain various Islamic modes of Financing. OR

Discuss various interest free modes of financing (A06, A05, A09, A10 1/2)27. Define Business Finance. Explain advantages and disadvantages of Equity finance (A12, A13).28. What is Business Finance? What do you know about its various kinds/types? also write

advantages and disadvantages of Debt financing(A04, A07, A08)