The State Bank of Pakistan (SBP) was established in which year?
A) 1947
B) 1950
C) 1948
D) 1955
Who was the founder of the State Bank of Pakistan?
A) Liaquat Ali Khan
B) Zulfikar Ali Bhutto
C) Muhammad Ali Jinnah
D) Ayub Khan
What is the primary function of the State Bank of Pakistan?
A) Printing school textbooks
B) Regulating commercial banks and controlling monetary policy
C) Managing the stock exchange
D) Issuing trade licenses
Which of the following is a key responsibility of SBP?
A) Managing foreign exchange reserves
B) Setting tax rates
C) Approving foreign investment projects
D) Controlling electricity prices
The State Bank of Pakistan is responsible for:
A) Controlling fiscal policy
B) Implementing monetary policy
C) Managing the judiciary
D) Drafting new laws for Parliament
Which department of SBP is responsible for formulating monetary policy?
A) Fiscal Policy Unit
B) Monetary Policy Department
C) Economic Affairs Division
D) Investment Board
Which monetary tool is commonly used by SBP to control inflation?
A) Increasing export tariffs
B) Adjusting interest rates
C) Imposing trade restrictions
D) Nationalizing industries
The headquarters of the State Bank of Pakistan is located in:
A) Lahore
B) Karachi
C) Islamabad
D) Quetta
Which financial institution regulates Pakistan’s banking system?
A) Pakistan Stock Exchange
B) Securities and Exchange Commission of Pakistan (SECP)
C) State Bank of Pakistan
D) Federal Board of Revenue (FBR)
Which of the following is NOT a function of SBP?
A) Regulating interest rates
B) Issuing new currency notes
C) Controlling government expenditures
D) Managing foreign exchange reserves
What does SBP use to influence money supply in the economy?
A) Monetary policy instruments
B) Government spending policies
C) Foreign aid distribution
D) Stock market regulations
Who appoints the Governor of the State Bank of Pakistan?
A) President of Pakistan
B) Prime Minister of Pakistan
C) Federal Minister for Finance
D) Parliament
What is the role of SBP in Pakistan’s foreign exchange market?
A) Setting customs duties
B) Managing foreign exchange reserves and stabilizing exchange rates
C) Controlling trade agreements
D) Increasing foreign investments
Which type of monetary policy does SBP adopt to control inflation?
A) Expansionary
B) Contractionary
C) Deflationary
D) Fixed Exchange Policy
How does SBP control commercial banks?
A) By monitoring their credit policies and enforcing banking regulations
B) By owning all banks
C) By providing subsidies to every bank
D) By setting salaries of bank employees
Which of the following actions would SBP take during high inflation?
A) Decrease interest rates
B) Increase the money supply
C) Increase interest rates
D) Stop collecting taxes
SBP ensures financial stability by:
A) Setting minimum wage levels
B) Regulating commercial banks and financial institutions
C) Providing financial aid to businesses
D) Reducing government debt
What is the impact of SBP increasing the policy interest rate?
A) Inflation rises
B) Borrowing becomes expensive, reducing inflation
C) Currency value decreases
D) Investment in stocks increases
Which law governs the State Bank of Pakistan?
A) SBP Banking Ordinance, 1970
B) State Bank of Pakistan Act, 1956
C) Pakistan Finance Act, 1980
D) Banking Regulations Act, 2002
The SBP is responsible for issuing:
A) Coins only
B) Paper currency and coins
C) Stocks and bonds
D) Savings certificates
Which body within SBP formulates monetary policy?
A) Federal Board of Revenue
B) Monetary Policy Committee
C) Economic Coordination Council
D) Ministry of Finance
Why does SBP intervene in the foreign exchange market?
A) To fix exchange rates
B) To stabilize the Pakistani rupee and maintain foreign reserves
C) To increase inflation
D) To control global oil prices
Which type of reserves does SBP manage?
A) Oil reserves
B) Foreign exchange reserves
C) Agricultural stockpiles
D) Housing reserves
The discount rate set by SBP affects:
A) Stock market investments
B) The cost of borrowing for commercial banks
C) Import duties
D) Tax collection policies
Which economic goal is NOT directly controlled by SBP?
A) Inflation control
B) Unemployment rate
C) Money supply regulation
D) Exchange rate stabilization
What happens when SBP reduces interest rates?
A) Investment and spending increase
B) Inflation decreases
C) Exports decline
D) Money supply contracts
What role does SBP play in financial inclusion?
A) Providing direct loans to consumers
B) Promoting banking access for underprivileged communities
C) Controlling stock market investments
D) Regulating online trading
How does SBP support economic growth?
A) By regulating prices of goods
B) By managing monetary policy to ensure financial stability
C) By increasing government tax revenue
D) By controlling wages in private sector jobs
Which monetary instrument is used by SBP to influence liquidity?
A) Tax rebates
B) Open market operations
C) Trade barriers
D) Foreign investment incentives
