The primary function of the State Bank of Pakistan (SBP) is __.
A) Collecting taxes
B) Regulating monetary policy
C) Controlling foreign trade
D) Managing public transport
Which year was the State Bank of Pakistan established?
A) 1948
B) 1950
C) 1947
D) 1952
Who inaugurated the State Bank of Pakistan?
A) Liaquat Ali Khan
B) Muhammad Ali Jinnah
C) Zulfikar Ali Bhutto
D) Ayub Khan
The State Bank of Pakistan controls __ to manage inflation.
A) Fiscal policy
B) Interest rates
C) Trade policy
D) Public sector jobs
Which monetary tool does SBP use to control money supply?
A) Foreign aid
B) Open market operations
C) Import tariffs
D) Minimum wage laws
Monetary policy is primarily used to control __.
A) Budget deficit
B) Inflation and deflation
C) Agricultural output
D) Government elections
The discount rate set by SBP influences __.
A) Tax collection
B) Loan interest rates
C) Import quotas
D) Employment laws
The money supply in an economy is controlled through __.
A) Tax policies
B) Public transport services
C) Monetary policy
D) Law enforcement agencies
Which department of SBP regulates commercial banks?
A) Agricultural Finance Department
B) Banking Policy & Regulations Department
C) Fiscal Policy Unit
D) Trade Development Authority
The SBP plays a crucial role in __.
A) Formulating national defense strategies
B) Managing currency stability
C) Conducting criminal investigations
D) Developing highways
The primary objective of monetary policy is to __.
A) Increase government jobs
B) Promote economic stability
C) Provide social welfare
D) Collect taxes
SBP regulates __ to maintain financial stability.
A) Government construction projects
B) Stock market transactions
C) Commercial banks
D) Public education policies
The term “monetary tightening” refers to __.
A) Increasing money supply
B) Decreasing money supply
C) Reducing exports
D) Increasing government spending
Which factor influences SBP’s monetary policy decisions?
A) Weather conditions
B) Inflation rate
C) Number of tourists
D) Military spending
Monetary policy is implemented by __.
A) Ministry of Finance
B) Pakistan Bureau of Statistics
C) State Bank of Pakistan
D) Securities and Exchange Commission
An increase in the interest rate generally results in __.
A) Higher borrowing and investment
B) Lower borrowing and investment
C) More government subsidies
D) Reduced taxation
Open market operations refer to __.
A) Government-run markets
B) Buying and selling of government securities
C) Export restrictions
D) Agricultural production planning
Which of the following is a key objective of SBP?
A) Controlling fiscal policy
B) Ensuring financial stability
C) Increasing tourism
D) Regulating industrial labor
Expansionary monetary policy is used to __.
A) Reduce inflation
B) Increase money supply
C) Increase unemployment
D) Lower wages
The interest rate set by SBP is called __.
A) Inflation rate
B) Exchange rate
C) Policy rate
D) Tax rate
Which instrument does SBP use to control inflation?
A) Trade agreements
B) Foreign direct investment
C) Interest rate adjustments
D) Population control measures
Which department within SBP manages currency issuance?
A) Banking Policy Department
B) Monetary Policy Department
C) Currency Management Department
D) Audit and Compliance Department
Pakistan’s foreign exchange reserves are managed by __.
A) State Bank of Pakistan
B) Ministry of Commerce
C) Pakistan Stock Exchange
D) Federal Board of Revenue
SBP ensures stability in the financial sector by __.
A) Monitoring banking regulations
B) Increasing electricity prices
C) Managing real estate projects
D) Controlling the transport sector
The primary tool for implementing monetary policy is __.
A) Government subsidies
B) Taxation reforms
C) Interest rate adjustments
D) National development plans
The impact of monetary policy on inflation is __.
A) Direct and immediate
B) Indirect and delayed
C) Negligible
D) Unpredictable
Which monetary policy action leads to economic growth?
A) Increasing interest rates
B) Reducing money supply
C) Lowering interest rates
D) Imposing more trade restrictions
Which entity is responsible for currency issuance in Pakistan?
A) Pakistan Stock Exchange
B) Federal Board of Revenue
C) State Bank of Pakistan
D) Ministry of Finance
How does SBP influence exchange rates?
A) By imposing trade restrictions
B) Through foreign exchange reserves management
C) By controlling national elections
D) By setting minimum wages
SBP’s monetary policy aims to achieve __.
A) High inflation
B) Economic stability
C) Political influence
D) Trade monopoly
