Banking and SBP MCQs 2026

SBP monetary tool 49: foreign exchange intervention is used to

1. Aset PSX daily price limits directly✓
2. Bapprove corporate annual reports✓
3. Cdetermine provincial sales tax rates✓
4. Dstabilize rupee value using official reserves✓

SBP monetary tool 38: reserve requirements is used to

1. Acontrol money multiplier via bank reserve ratios✓
2. Bset PSX daily price limits directly✓
3. Capprove corporate annual reports✓
4. Ddetermine provincial sales tax rates✓

SBP monetary tool 16: open market operations is used to

1. Ainject or absorb liquidity through government securities✓
2. Bset PSX daily price limits directly✓
3. Capprove corporate annual reports✓
4. Ddetermine provincial sales tax rates✓

SBP monetary tool 11: moral suasion is used to

1. Aset PSX daily price limits directly✓
2. Bapprove corporate annual reports✓
3. Cdetermine provincial sales tax rates✓
4. Dinfluence bank behavior through supervisory guidance✓

SBP monetary tool 8: policy rate adjustment is used to

1. Aset PSX daily price limits directly✓
2. Bapprove corporate annual reports✓
3. Csignal and steer short-term interbank interest rates✓
4. Ddetermine provincial sales tax rates✓

SBP monetary tool 6: macroprudential limits is used to

1. Aset PSX daily price limits directly✓
2. Bapprove corporate annual reports✓
3. Cdetermine provincial sales tax rates✓
4. Dlimit systemic risk through sectoral exposure caps✓

SBP monetary tool 5: refinance facilities is used to

1. Aprovide targeted liquidity to priority sectors✓
2. Bset PSX daily price limits directly✓
3. Capprove corporate annual reports✓
4. Ddetermine provincial sales tax rates✓

SBP quarterly monetary policy statements address

1. Acorporate dividend announcements✓
2. Binflation outlook, growth, and interest rate stance✓
3. Cuniversity exam schedules✓
4. Dcricket tournament fixtures✓

Islamic banking in Pakistan operates under

1. Ano regulatory oversight✓
2. BSBP Shariah governance framework alongside conventional banks✓
3. Conly foreign law✓
4. DPSX trading rules exclusively✓

Deposit protection in Pakistan is provided through

1. Aunlimited government guarantee on all deposits✓
2. BDeposit Protection Corporation framework✓
3. Cno protection mechanism✓
4. DPSX investor guarantee fund for deposits✓

Banking Companies Ordinance governs

1. Aagricultural land records only✓
2. Buniversity admissions✓
3. Cairline schedules✓
4. Dlicensing and prudential regulation of commercial banks in Pakistan✓

SBP open market operations involve

1. Asetting PSX stock prices directly✓
2. Bapproving corporate mergers exclusively✓
3. Cissuing passports✓
4. Dbuying or selling government securities to manage liquidity✓

Cash Reserve Requirement (CRR) mandates banks to

1. Ahold fraction of deposits with SBP without interest✓
2. Blend entire deposits freely✓
3. Cinvest all deposits in equities✓
4. Dpay dividends from reserves✓

Statutory Liquidity Requirement (SLR) for banks in Pakistan requires

1. Azero reserves at all times✓
2. Bonly foreign currency holdings abroad✓
3. Cmaintaining liquid assets as percent of liabilities✓
4. Dequity investment in PSX only✓

SBP policy rate (target rate) influences

1. Acustoms tariffs on imports only✓
2. Bcorporate dividend tax rates only✓
3. CPSX listing fees only✓
4. Dcost of bank lending and monetary conditions✓

State Bank of Pakistan (SBP) serves as

1. Astock exchange operator✓
2. Bcentral bank conducting monetary policy and banking supervision✓
3. Ccorporate tax collector✓
4. Dprovincial revenue authority✓

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

1. Amaximize credit card marketing only✓
2. Beliminate all cash transactions legally✓
3. Cprevent money laundering and terrorist financing✓
4. Dreplace income tax filing✓