Banking and SBP MCQs 2026

State Bank of Pakistan (SBP) serves as

1. A stock exchange operator ✓
2. B central bank conducting monetary policy and banking supervision ✓
3. C corporate tax collector ✓
4. D provincial revenue authority ✓

SBP policy rate (target rate) influences

1. A customs tariffs on imports only ✓
2. B corporate dividend tax rates only ✓
3. C PSX listing fees only ✓
4. D cost of bank lending and monetary conditions ✓

SBP monetary tool 38: reserve requirements is used to

1. A control money multiplier via bank reserve ratios ✓
2. B set PSX daily price limits directly ✓
3. C approve corporate annual reports ✓
4. D determine provincial sales tax rates ✓

Islamic banking in Pakistan operates under

1. A no regulatory oversight ✓
2. B SBP Shariah governance framework alongside conventional banks ✓
3. C only foreign law ✓
4. D PSX trading rules exclusively ✓

Deposit protection in Pakistan is provided through

1. A unlimited government guarantee on all deposits ✓
2. B Deposit Protection Corporation framework ✓
3. C no protection mechanism ✓
4. D PSX investor guarantee fund for deposits ✓

Banking Companies Ordinance governs

1. A agricultural land records only ✓
2. B university admissions ✓
3. C airline schedules ✓
4. D licensing and prudential regulation of commercial banks in Pakistan ✓

SBP open market operations involve

1. A setting PSX stock prices directly ✓
2. B approving corporate mergers exclusively ✓
3. C issuing passports ✓
4. D buying or selling government securities to manage liquidity ✓

Cash Reserve Requirement (CRR) mandates banks to

1. A hold fraction of deposits with SBP without interest ✓
2. B lend entire deposits freely ✓
3. C invest all deposits in equities ✓
4. D pay dividends from reserves ✓

Statutory Liquidity Requirement (SLR) for banks in Pakistan requires

1. A zero reserves at all times ✓
2. B only foreign currency holdings abroad ✓
3. C maintaining liquid assets as percent of liabilities ✓
4. D equity investment in PSX only ✓

Know Your Customer (KYC) requirements for Pakistani banks aim to

1. A maximize credit card marketing only ✓
2. B eliminate all cash transactions legally ✓
3. C prevent money laundering and terrorist financing ✓
4. D replace income tax filing ✓

SBP monetary tool 49: foreign exchange intervention is used to

1. A set PSX daily price limits directly ✓
2. B approve corporate annual reports ✓
3. C determine provincial sales tax rates ✓
4. D stabilize rupee value using official reserves ✓

SBP monetary tool 16: open market operations is used to

1. A inject or absorb liquidity through government securities ✓
2. B set PSX daily price limits directly ✓
3. C approve corporate annual reports ✓
4. D determine provincial sales tax rates ✓

SBP monetary tool 11: moral suasion is used to

1. A set PSX daily price limits directly ✓
2. B approve corporate annual reports ✓
3. C determine provincial sales tax rates ✓
4. D influence bank behavior through supervisory guidance ✓

SBP monetary tool 8: policy rate adjustment is used to

1. A set PSX daily price limits directly ✓
2. B approve corporate annual reports ✓
3. C signal and steer short-term interbank interest rates ✓
4. D determine provincial sales tax rates ✓

SBP monetary tool 6: macroprudential limits is used to

1. A set PSX daily price limits directly ✓
2. B approve corporate annual reports ✓
3. C determine provincial sales tax rates ✓
4. D limit systemic risk through sectoral exposure caps ✓

SBP monetary tool 5: refinance facilities is used to

1. A provide targeted liquidity to priority sectors ✓
2. B set PSX daily price limits directly ✓
3. C approve corporate annual reports ✓
4. D determine provincial sales tax rates ✓

SBP quarterly monetary policy statements address

1. A corporate dividend announcements ✓
2. B inflation outlook, growth, and interest rate stance ✓
3. C university exam schedules ✓
4. D cricket tournament fixtures ✓