Financial Markets Pakistan MCQs 2026

Pakistan Stock Exchange (PSX) primary function is

1. A providing a regulated platform for trading listed securities ✓
2. B printing currency notes ✓
3. C setting corporate income tax rates ✓
4. D licensing commercial banks exclusively ✓

KSE-100 Index historically represented

1. A only banking deposits ✓
2. B benchmark of top companies on Karachi equity market ✓
3. C only government budget deficit ✓
4. D only foreign remittances ✓

SEC Pakistan (now merged into PSX regulatory framework historically) role included

1. A capital market regulation and investor protection ✓
2. B monetary policy implementation ✓
3. C customs duty collection ✓
4. D railway operations ✓

Primary market activity involves

1. A only secondary trading among investors ✓
2. B only dividend collection ✓
3. C new securities issuance to raise capital ✓
4. D only bond coupon clipping ✓

Secondary market trading

1. A always increases company share capital ✓
2. B eliminates price discovery ✓
3. C provides liquidity without direct capital raising for the issuer ✓
4. D replaces need for banks ✓

Money market instruments in Pakistan include

1. A Treasury bills and commercial paper ✓
2. B common stock of PSX listed firms ✓
3. C real estate deeds ✓
4. D life insurance policies only ✓

National Savings schemes in Pakistan are issued by

1. A private commercial banks only ✓
2. B PSX directly ✓
3. C Central Directorate of National Savings under government ✓
4. D SBP as equity issuer ✓

Development finance institutions in Pakistan such as DFIs historically supported

1. A daily retail payment clearing only ✓
2. B currency note printing ✓
3. C long-term industrial and infrastructure financing ✓
4. D stock day-trading exclusively ✓

Foreign Portfolio Investment in Pakistan equity market is regulated through

1. A SCP/RDA frameworks and PSX reporting requirements ✓
2. B no documentation at all ✓
3. C only provincial tax offices ✓
4. D only microfinance ordinances ✓

Corporate bond market in Pakistan remains

1. A larger than US bond market ✓
2. B nonexistent with no debt issuance ✓
3. C relatively thin compared to bank financing and equities ✓
4. D the only funding source for SMEs ✓

Pakistan financial markets item 2: commercial paper is classified primarily as

1. A physical agricultural land registry document ✓
2. B informal hawala transfer receipt only ✓
3. C unlisted partnership deed without trading ✓
4. D short-term unsecured corporate debt ✓

Pakistan financial markets item 6: Naya Pakistan Certificates is classified primarily as

1. A physical agricultural land registry document ✓
2. B informal hawala transfer receipt only ✓
3. C foreign currency investment product for overseas Pakistanis ✓
4. D unlisted partnership deed without trading ✓

Pakistan financial markets item 9: mutual fund units is classified primarily as

1. A pooled investment vehicle in diversified securities ✓
2. B physical agricultural land registry document ✓
3. C informal hawala transfer receipt only ✓
4. D unlisted partnership deed without trading ✓

Pakistan financial markets item 17: corporate bonds is classified primarily as

1. A physical agricultural land registry document ✓
2. B long-term debt security issued by corporations ✓
3. C informal hawala transfer receipt only ✓
4. D unlisted partnership deed without trading ✓

Pakistan financial markets item 64: sukuk is classified primarily as

1. A physical agricultural land registry document ✓
2. B informal hawala transfer receipt only ✓
3. C unlisted partnership deed without trading ✓
4. D Shariah-compliant asset-based investment certificate ✓

Pakistan financial markets item 60: commodity futures is classified primarily as

1. A physical agricultural land registry document ✓
2. B standardized contract for future commodity delivery ✓
3. C informal hawala transfer receipt only ✓
4. D unlisted partnership deed without trading ✓

Pakistan financial markets item 55: Pakistan Investment Bonds is classified primarily as

1. A physical agricultural land registry document ✓
2. B informal hawala transfer receipt only ✓
3. C unlisted partnership deed without trading ✓
4. D sovereign debt instrument ✓

Pakistan financial markets item 53: term finance certificates is classified primarily as

1. A physical agricultural land registry document ✓
2. B informal hawala transfer receipt only ✓
3. C unlisted partnership deed without trading ✓
4. D bank or corporate medium-term debt security ✓

Pakistan financial markets item 48: REIT units is classified primarily as

1. A securitized real estate income participation ✓
2. B physical agricultural land registry document ✓
3. C informal hawala transfer receipt only ✓
4. D unlisted partnership deed without trading ✓

Pakistan financial markets item 41: Treasury bills is classified primarily as

1. A sovereign debt instrument ✓
2. B physical agricultural land registry document ✓
3. C informal hawala transfer receipt only ✓
4. D unlisted partnership deed without trading ✓