Sunday, 26 March 2017




Q.8        Being the Head of the Strategy Cost Cutting Steering Group, you are assigned
           the task of preparing a preliminary report on cost cutting at MULTIBRANDS.  
           Write the report focusing on the following:                                                                             (10)
           •     Product development                              
           •     Brand consolidation  
           •     Quality control and pricing  
           •     Personnel retention and hiring




                                   ISQ Examination (Summer-2009)  
Q. 1        Fill in the blanks:                                                                                                          (10)  
Q.2       State True or False in the answer column.                                                                                      (10)  
Q.3         Please write the alphabet of selected answer in the given space:                        (13)  
Q.4         A)         Under  Financial  Institutions  (Recovery  of  Finances),  Ordinance,  2001  
                       what constitute a “customer” and his obligations?                                                                 (06)  
Q.4        B)          Does a banker incur any liability to third party by issuing a chequebook  
                       to the client while the bank account was opened negligently?                 (05)  
Q.4        C)          Is the bank liable to the depositor who presents Fixed Deposit Receipt on  
                       maturity for repayment, if it is found that no such deposit was recorded in  
                       the books of the branch and it transpired that the  Branch Manager had  
                       embezzled the amount?                                                                                             (05)  
Q.5         What  precautions  should  a  banker  take  in  opening  the  bank  accounts  in  the  
            names of;  
           i)          Individual                                                                                                        (05)  
           ii)         Trust Account                                                                                                   (05)  
           iii)        Account of Joint Stock                                                                                          (05)  
Q.6        A)          Under what circumstances a banker is justified in refusing payment of a  
                       cheque drawn upon him?                                                                                            (05)  
Q.6         B)         Please discuss modes of securing the finance?                                                                      (05)  
Q.7        A)         Discuss the banker’s rights to sell the pledged goods and the formalities to  
                     be complied with prior to exercise the powers.                                          (05)  
Q.7         B)         Discuss;                                                                                                           (06)  
           i)          “Equitable Mortgage”                                     ii)         “Legal Mortgage”  

                            ISQ Examination (Summer-2009)  
Q.1       State TRUE or FALSE in the answer column:                                                                    (18)  
Q.2       Please write the alphabet of your choice in the answer column.                         (35)  
Q.3       Following  transactions  were  carried  out  during  2008  by  Chinawala  Brothers  
          (CWB).  Put a letter whether each of the transaction will immediately             (10)  
          -    Increase (I),  
          -    decrease (D), or  
          -    have no effect (N) on the ratios/figures shown.  
                                                                           Leverage         Return            Quick  
                                                                             Ratio         on Assets          Ratio  
    1. January 1, 2008: CWB issues 150,000 shares of  
        stock at Rs.10 par-value.   

    2. January 20, 2008: CWB purchases a building for                                                       
        Rs.70,000 and purchases equipment for  
        Rs.35,000. It pays half the price in cash and the  
        other half through a bank loan.   
    3. March 1, 2008: CWB acquires finished goods for                                                       
        Rs.150,000. CWB pays cash for half of the  
        merchandise, and the remainder is purchased on  
    4. March 30, 2008: CWB pays Rs.45,000 in  
        employee salaries.   

    5. July 1, 2008: CWB decides to rent additional                                                         

        building space and pays for six months rent, at  
        Rs.3000 a month, in advance.   

    6. August 22, 2008: CWB sells all of the finished                                                       

        goods for Rs.400,000, of which Rs.300,000 is on  
        account and the remainder is received in cash.   

    7. October 30, 2008: CWB collects Rs.160,000 in                                                         

        cash from its accounts receivable, and uses this  
        money to pay down its accounts payable.   

    8. November 23, Year1: CWB declares dividend  
        @Rs.2.50 per share, payable on Dec. 30, 2008.   

                                     ISQ Examination (Summer-2009)  
Q.1       State True or False in the answer column.                                                                              (09)  
Q.2        Please write the alphabet of selected answer in the given space:                        (46)  
Q.3        A dialogue took place between two economists is as follows:  
           Mr. A:               The  neo-classical  model  which  is  promoted  by  the  IMF  and  its  
                                followers  in  developing  countries  needs  to  be  re-assessed.  The  
                                emphasis  on  macroeconomic  stability,  in  particular  controlling  
                                inflation should not be at the expense of growth in the developing  
                                countries such as Pakistan.  
           Mr. B:               The  issue  of  macro  stability  is  also  very  important.  If  that  is  
                                ignored, the growth achieved shall falter in the long-run. I believe  
                                we     should       first     look      at    achieving        stability       and     arresting  
                                inflationary trend as major focus of our economic policy.  
           Mr. A:               We  can  not  over-look  stability  question.  However,  we  should  not  
                                ignore  more  basic  issues  confronting  our  economy.  Poverty  rate  
                                has jumped from 23.9% to 37.5% in the course of three years. We  
                                need  investment  in  infrastructure,  human  development  projects  
                                and for improving living standard of poorer sections of society.  
           Mr. B:               I  think  if  we  are  able  to  keep  inflation  and  growing  macro  
                                economic imbalances in check, we may then adopt policies aiming  
                                at achieving growth on sustainable basis.  
           Based on the above discussion, Answer the following questions:                           
           i)        Is there any trade-off between inflation and growth in Pakistan’s  
                     economy? Justify your view point with reasoning.                                   (03)  
           ii)       Explain why macro economic stability is important for smooth  
                     functioning  of economy.                                                                             (03)  
Q.4        (A)       Outline the major factors responsible for liquidity pressures experienced  
                     by Banking System in Pakistan in recent past?                                        (05)  
Q.4        (B)       What  are  the  implications  of  high  fiscal  deficits  for  monetary  policy?  
                     Discuss in the context of Pakistan.                                                             (05)  
Q.5        (A)       What does a balance of payments statement tell us?                                (02)