CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "exchange rate" aspect of State Bank of Pakistan (SBP)?
A. exchange rate — Minimum reserves banks must hold with the central bank
B. exchange rate — Manage liquidity in the banking system
C. exchange rate — Market where banks trade currencies with each other
D. exchange rate — Conduct monetary policy and maintain monetary and financial stability
Correct Answer: C
The correct match is "exchange rate — Market where banks trade currencies with each other". SBP monitors and regulates the foreign-exchange system.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "foreign reserves" aspect of State Bank of Pakistan (SBP)?
A. foreign reserves — State Bank of Pakistan
B. foreign reserves — SECP
C. foreign reserves — Monetary Policy Committee
D. foreign reserves — Pakistan Stock Exchange
Correct Answer: A
The correct match is "foreign reserves — State Bank of Pakistan". SBP holds and manages a major portion of official reserves.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "bank supervision" aspect of State Bank of Pakistan (SBP)?
A. bank supervision — State Bank of Pakistan
B. bank supervision — SECP
C. bank supervision — Securities and Exchange Commission of Pakistan
D. bank supervision — Monetary Policy Committee
Correct Answer: A
The correct match is "bank supervision — State Bank of Pakistan". SBP sets prudential standards and supervises banks.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "inflation objective" aspect of State Bank of Pakistan (SBP)?
A. inflation objective — To reduce demand and inflationary pressure
B. inflation objective — Manage liquidity in the banking system
C. inflation objective — Signal the stance of monetary policy
D. inflation objective — Central-bank support to solvent banks facing temporary liquidity stress
Correct Answer: A
The correct match is "inflation objective — To reduce demand and inflationary pressure". Higher interest rates can slow credit and spending.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "policy rate" aspect of State Bank of Pakistan (SBP)?
A. policy rate — Minimum reserves banks must hold with the central bank
B. policy rate — To expand access and improve efficiency of financial services
C. policy rate — Signal the stance of monetary policy
D. policy rate — Conduct monetary policy and maintain monetary and financial stability
Correct Answer: C
The correct match is "policy rate — Signal the stance of monetary policy". Changes in the policy rate influence borrowing costs, inflation and demand.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "currency issuance" aspect of State Bank of Pakistan (SBP)?
A. currency issuance — Pakistan Stock Exchange
B. currency issuance — SECP
C. currency issuance — Monetary Policy Committee
D. currency issuance — State Bank of Pakistan
Correct Answer: D
The correct match is "currency issuance — State Bank of Pakistan". SBP issues banknotes, while coins are issued by the federal government through the Mint.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "central-bank role" aspect of State Bank of Pakistan (SBP)?
A. central-bank role — Conduct monetary policy and maintain monetary and financial stability
B. central-bank role — To reduce demand and inflationary pressure
C. central-bank role — Manage liquidity in the banking system
D. central-bank role — Minimum reserves banks must hold with the central bank
Correct Answer: A
The correct match is "central-bank role — Conduct monetary policy and maintain monetary and financial stability". The central bank manages money, liquidity, banking oversight and foreign reserves.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "first governor" aspect of State Bank of Pakistan (SBP)?
A. first governor — Muammar Gaddafi
B. first governor — Haji Begum
C. first governor — Zahid Hussain
D. first governor — Shehbaz Sharif
Correct Answer: C
The correct match is "first governor — Zahid Hussain". Zahid Hussain became the first SBP Governor.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "inauguration" aspect of State Bank of Pakistan (SBP)?
A. inauguration — 1 July 1948
B. inauguration — 1 August 1948
C. inauguration — 3 July 1948
D. inauguration — 1 July 1947
Correct Answer: A
The correct match is "inauguration — 1 July 1948". Quaid-e-Azam inaugurated the State Bank on 1 July 1948.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which pairing is correct for the "full form" aspect of State Bank of Pakistan (SBP)?
A. full form — State Bank of Pakistan
B. full form — Pakistan Stock Exchange
C. full form — Securities and Exchange Commission of Pakistan
D. full form — Monetary Policy Committee
Correct Answer: A
The correct match is "full form — State Bank of Pakistan". SBP is Pakistan's central bank.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "financial inclusion"?
A. Conduct monetary policy and maintain monetary and financial stability
B. Market where banks trade currencies with each other
C. Central-bank support to solvent banks facing temporary liquidity stress
D. To expand access and improve efficiency of financial services
Correct Answer: D
Financial inclusion: To expand access and improve efficiency of financial services. Digital finance can reduce transaction costs and bring more people into formal banking.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "reserve requirement"?
A. Minimum reserves banks must hold with the central bank
B. To expand access and improve efficiency of financial services
C. Conduct monetary policy and maintain monetary and financial stability
D. Signal the stance of monetary policy
Correct Answer: A
Reserve requirement: Minimum reserves banks must hold with the central bank. Reserve requirements influence liquidity and prudential safety.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "open market operations"?
A. Signal the stance of monetary policy
B. Manage liquidity in the banking system
C. Minimum reserves banks must hold with the central bank
D. Central-bank support to solvent banks facing temporary liquidity stress
Correct Answer: B
Open market operations: Manage liquidity in the banking system. SBP buys or sells/borrows securities through OMOs to influence short-term liquidity.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "lender of last resort"?
A. Conduct monetary policy and maintain monetary and financial stability
B. Central-bank support to solvent banks facing temporary liquidity stress
C. To expand access and improve efficiency of financial services
D. Market where banks trade currencies with each other
Correct Answer: B
Lender of last resort: Central-bank support to solvent banks facing temporary liquidity stress. This function helps prevent destabilizing bank runs.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "monetary policy committee"?
A. Pakistan Stock Exchange
B. Monetary Policy Committee
C. Ministry of Finance
D. State Bank of Pakistan
Correct Answer: B
Monetary policy committee: Monetary Policy Committee. The MPC is responsible for monetary-policy decisions.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "exchange rate"?
A. Market where banks trade currencies with each other
B. Manage liquidity in the banking system
C. Signal the stance of monetary policy
D. To expand access and improve efficiency of financial services
Correct Answer: A
Exchange rate: Market where banks trade currencies with each other. SBP monitors and regulates the foreign-exchange system.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "foreign reserves"?
A. State Bank of Pakistan
B. Securities and Exchange Commission of Pakistan
C. Pakistan Stock Exchange
D. Monetary Policy Committee
Correct Answer: A
Foreign reserves: State Bank of Pakistan. SBP holds and manages a major portion of official reserves.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "bank supervision"?
A. Securities and Exchange Commission of Pakistan
B. Monetary Policy Committee
C. Corporate Law Authority
D. State Bank of Pakistan
Correct Answer: D
Bank supervision: State Bank of Pakistan. SBP sets prudential standards and supervises banks.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "inflation objective"?
A. To reduce demand and inflationary pressure
B. Market where banks trade currencies with each other
C. Signal the stance of monetary policy
D. Conduct monetary policy and maintain monetary and financial stability
Correct Answer: A
Inflation objective: To reduce demand and inflationary pressure. Higher interest rates can slow credit and spending.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "policy rate"?
A. Conduct monetary policy and maintain monetary and financial stability
B. Signal the stance of monetary policy
C. Manage liquidity in the banking system
D. To expand access and improve efficiency of financial services
Correct Answer: B
Policy rate: Signal the stance of monetary policy. Changes in the policy rate influence borrowing costs, inflation and demand.