CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "currency issuance"?
A. State Bank of Pakistan
B. Securities and Exchange Commission of Pakistan
C. Monetary Policy Committee
D. SECP
Correct Answer: A
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)
For State Bank of Pakistan (SBP), which option correctly gives the "central-bank role"?
A. Conduct monetary policy and maintain monetary and financial stability
B. Signal the stance of monetary policy
C. Market where banks trade currencies with each other
D. Central-bank support to solvent banks facing temporary liquidity stress
Correct Answer: A
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)
For State Bank of Pakistan (SBP), which option correctly gives the "first governor"?
A. Hans Kelsen
B. Haji Shariatullah
C. Zahid Hussain
D. Jahangir
Correct Answer: C
First governor: Zahid Hussain. Zahid Hussain became the first SBP Governor.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
For State Bank of Pakistan (SBP), which option correctly gives the "inauguration"?
A. 1 July 1947
B. 1 July 1949
C. 1 July 1948
D. 3 July 1948
Correct Answer: C
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)
For State Bank of Pakistan (SBP), which option correctly gives the "full form"?
A. State Bank of Pakistan
B. Monetary Policy Committee
C. Securities and Exchange Commission of Pakistan
D. SECP
Correct Answer: A
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)
Why does SBP promote digital payments and financial inclusion?
A. To expand access and improve efficiency of financial services
B. Conduct monetary policy and maintain monetary and financial stability
C. Central-bank support to solvent banks facing temporary liquidity stress
D. To reduce demand and inflationary pressure
Correct Answer: A
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)
What is a cash reserve requirement?
A. Minimum reserves banks must hold with the central bank
B. To reduce demand and inflationary pressure
C. Central-bank support to solvent banks facing temporary liquidity stress
D. Signal the stance of monetary policy
Correct Answer: A
Reserve requirements influence liquidity and prudential safety.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
What are open market operations used for?
A. Conduct monetary policy and maintain monetary and financial stability
B. Manage liquidity in the banking system
C. To reduce demand and inflationary pressure
D. Signal the stance of monetary policy
Correct Answer: B
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)
What does 'lender of last resort' mean?
A. Central-bank support to solvent banks facing temporary liquidity stress
B. Signal the stance of monetary policy
C. Conduct monetary policy and maintain monetary and financial stability
D. Manage liquidity in the banking system
Correct Answer: A
This function helps prevent destabilizing bank runs.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which body decides the policy rate under the modern SBP framework?
A. Monetary Policy Committee
B. Corporate Law Authority
C. Securities and Exchange Commission of Pakistan
D. State Bank of Pakistan
Correct Answer: A
The MPC is responsible for monetary-policy decisions.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
What is the interbank foreign-exchange market?
A. To expand access and improve efficiency of financial services
B. Central-bank support to solvent banks facing temporary liquidity stress
C. Signal the stance of monetary policy
D. Market where banks trade currencies with each other
Correct Answer: D
SBP monitors and regulates the foreign-exchange system.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which institution manages Pakistan's official foreign-exchange reserves?
A. Ministry of Finance
B. Monetary Policy Committee
C. State Bank of Pakistan
D. Pakistan Stock Exchange
Correct Answer: C
SBP holds and manages a major portion of official reserves.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Which institution regulates and supervises commercial banks?
A. Monetary Policy Committee
B. SECP
C. Securities and Exchange Commission of Pakistan
D. State Bank of Pakistan
Correct Answer: D
SBP sets prudential standards and supervises banks.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Why does SBP tighten monetary policy when inflation is persistently high?
A. To expand access and improve efficiency of financial services
B. To reduce demand and inflationary pressure
C. Central-bank support to solvent banks facing temporary liquidity stress
D. Manage liquidity in the banking system
Correct Answer: B
Higher interest rates can slow credit and spending.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
What is the policy rate used for?
A. Signal the stance of monetary policy
B. Market where banks trade currencies with each other
C. To expand access and improve efficiency of financial services
D. Minimum reserves banks must hold with the central bank
Correct Answer: A
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 institution has the sole right to issue most Pakistani banknotes?
A. State Bank of Pakistan
B. Pakistan Stock Exchange
C. Securities and Exchange Commission of Pakistan
D. Monetary Policy Committee
Correct Answer: A
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)
What is the SBP's core role?
A. Conduct monetary policy and maintain monetary and financial stability
B. Minimum reserves banks must hold with the central bank
C. Central-bank support to solvent banks facing temporary liquidity stress
D. To expand access and improve efficiency of financial services
Correct Answer: A
The central bank manages money, liquidity, banking oversight and foreign reserves.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
Who was the first Governor of the State Bank of Pakistan?
A. Lord Chelmsford
B. Iltutmish
C. Zahid Hussain
D. General Ayub Khan
Correct Answer: C
Zahid Hussain became the first SBP Governor.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
On what date did the State Bank of Pakistan begin operations?
A. 1 July 1949
B. 3 July 1948
C. 1 July 1948
D. 1 August 1948
Correct Answer: C
Quaid-e-Azam inaugurated the State Bank on 1 July 1948.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A)
State Bank of Pakistan (SBP)
What does SBP stand for?
A. State Bank of Pakistan
B. Pakistan Stock Exchange
C. Monetary Policy Committee
D. Securities and Exchange Commission of Pakistan
Correct Answer: A
SBP is Pakistan's central bank.