What is the primary function of the State Bank of Pakistan (SBP)?
A) Regulating the stock market
B) Managing foreign direct investments
C) Controlling monetary policy
D) Issuing government bonds
Which act governs the State Bank of Pakistan?
A) Banking Companies Ordinance 1962
B) State Bank of Pakistan Act 1956
C) Financial Institutions Act 1997
D) Central Banking Act 1948
Who appoints the Governor of the State Bank of Pakistan?
A) Prime Minister of Pakistan
B) Senate of Pakistan
C) President of Pakistan
D) Federal Government
What is the primary tool used by SBP to control inflation?
A) Fiscal policy
B) Open market operations
C) Taxation
D) Public borrowing
Which of the following is NOT a function of SBP?
A) Regulating monetary policy
B) Controlling inflation
C) Issuing currency
D) Collecting taxes
What is the minimum reserve requirement for banks set by SBP?
A) 2%
B) 5%
C) 10%
D) 15%
Which department of SBP is responsible for monetary policy implementation?
A) Banking Supervision Department
B) Monetary Policy Department
C) Exchange Policy Department
D) Financial Stability Department
Which financial instrument is commonly used by SBP to regulate liquidity?
A) Treasury Bills
B) Corporate Bonds
C) Mutual Funds
D) Stocks
What does SBP use to stabilize exchange rates?
A) Trade barriers
B) Foreign exchange reserves
C) Increasing government spending
D) Raising minimum wages
Which interest rate is announced by SBP to control inflation and liquidity?
A) Policy Rate
B) Discount Rate
C) LIBOR Rate
D) Exchange Rate
What is the main reason SBP increases the interest rate?
A) To promote borrowing
B) To control inflation
C) To increase exports
D) To reduce government debt
Which agency supervises commercial banks in Pakistan?
A) Federal Board of Revenue
B) Ministry of Finance
C) Securities & Exchange Commission of Pakistan
D) State Bank of Pakistan
What is the tenure of the Governor of the State Bank of Pakistan?
A) 2 years
B) 3 years
C) 4 years
D) 5 years
Which policy is primarily used by SBP to control money supply?
A) Fiscal Policy
B) Monetary Policy
C) Industrial Policy
D) Trade Policy
Which committee formulates the monetary policy in Pakistan?
A) Monetary Policy Committee
B) Fiscal Advisory Board
C) Economic Coordination Committee
D) Finance Advisory Council
Which currency is used for Pakistan’s foreign reserves?
A) Pakistani Rupee
B) US Dollar
C) British Pound
D) Chinese Yuan
Which bank is the lender of last resort in Pakistan?
A) National Bank of Pakistan
B) Habib Bank Limited
C) State Bank of Pakistan
D) World Bank
Which document outlines SBP’s economic outlook and policy directions?
A) Annual Monetary Policy Report
B) Economic Survey of Pakistan
C) Budget Speech
D) IMF Country Report
What does SBP regulate in the banking sector?
A) Trade policies
B) Minimum wage
C) Capital adequacy ratios
D) Corporate taxation
What is the primary objective of SBP’s foreign exchange policy?
A) Stabilizing oil prices
B) Controlling inflation
C) Maintaining exchange rate stability
D) Increasing foreign remittances
Which department of SBP deals with foreign reserves management?
A) Banking Supervision Department
B) Exchange Policy Department
C) Treasury & Investment Department
D) Financial Monitoring Unit
What role does SBP play in financial inclusion?
A) Regulating insurance companies
B) Encouraging digital banking
C) Issuing company licenses
D) Controlling tax collection
What is the impact of SBP increasing the cash reserve requirement (CRR)?
A) Increase in lending
B) Decrease in liquidity
C) Higher inflation
D) More government spending
Which law empowers SBP to regulate the banking sector?
A) Banking Companies Ordinance 1962
B) Companies Act 2017
C) Trade Ordinance 1985
D) Consumer Protection Act 2005
What is the purpose of SBP’s refinance schemes?
A) Boosting the real estate sector
B) Supporting SME financing
C) Enhancing foreign trade
D) Strengthening stock markets
Which measure does SBP take to reduce inflation?
A) Decreasing policy rate
B) Increasing money supply
C) Raising policy rate
D) Lowering cash reserve requirement
What happens when SBP lowers the interest rate?
A) Borrowing decreases
B) Inflation decreases
C) Investment increases
D) Currency value strengthens
Which department of SBP is responsible for anti-money laundering regulations?
A) Exchange Policy Department
B) Banking Inspection Department
C) Financial Monitoring Unit
D) Treasury & Investment Department
Which financial market does SBP regulate?
A) Stock market
B) Forex market
C) Commodity market
D) Real estate market
