Important MCQs About Pakistan Economy

For the test of SBP (OG1, OG2 and OG3)

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I. In Pakistan Compensation of employees is the largest type of
• income
II. In Pakistan, Rupee is the
• Money of account
III. On which basis the government of Pakistan issue currency?
• Demand for money in the country
IV. Inconvertible money in Pakistan is
• Paper Money
V. What determines the value of money in Pakistan?
• General price level
VI. A coin of rupee is a
• Token money
VII. What factor forces the government of Pakistan to issues more currency?
• Demand for money in the country
VIII. General price level in Pakistan determines the
• Value of money
IX. What is the total number of bank branches in Pakistan?
• Between 5000 to 10,000
X. What is the discount rate of State Bank of Pakistan?
• Between 5% to 15%
XI. When was the State Bank of Pakistan established?
• 1948
XII. Main departments of the State Bank of Pakistan are
• Issue, research and banking department
XIII. Who run the State Bank of Pakistan?
• Board of directors
XIV. In Pakistan who levied taxes?
• National Assembly
XV. Who prepared the national budget of Pakistan?
• Ministry of Finance
XVI. In Pakistan the type of income tax is
• Direct and progressive
XVII. The federal budget of Pakistan includes both direct and indirect taxes and
proportional and
• Progressive taxes
XVIII. In Pakistan, who collect income tax?
• Federal government
 XIX. In Pakistan sale tax is
• Indirect and proportional
XX. Pakistan’s The terms of trade of Pakistan have
• Fallen over the past few years
XXI. The exchange value of Pakistani Rupee has fallen against other currencies because
• Our imports are more than exports
XXII. Because of competitive advantage, Pakistan imports some goods and exports other
goods
• Other goods
XXIII. Exports can be increased only by improving the quality of goods and decreasing the
value
• Of its currency
XXIV. Exports and imports in Pakistan will encourage if
• GNP rises
XXV. Which exchange rate policy Pakistan follows?
• Flexible exchange rate policy
XXVI. What percentage of Pakistan’s exports comprises its total GDP
• 15%
XXVII. If the value of Pakistani rupee falls against US dollar the prices of American goods in
Pakistan will
• Rise
XXVIII. What is the overall effect of Loan of IMF to Pakistan on Pakistan’s economy?
• Improves capital account and overall balance of payments
XXIX. What is the average life expectancy in Pakistan?
• 66 years
XXX. What is Infant mortality rate in Pakistan?
• 65%
XXXI. In Pakistan how much area forests covered?
• 4%
XXXII. There are how many stock exchanges in Pakistan?
• Three (3)
XXXIII. What is Pakistan’s public saving rate?
• 15%
XXXIV. What is Pakistan’s per capita income at constant prices in rupees?
• 32,000
XXXV. Which is the largest sector of Pakistan’s economy?
• Agriculture
XXXVI. What is the percentage of the contribution of Industrial sector in Pakistan’s total
GDP?
• 18%
XXXVII. Which is base year of Pakistan for national accounting?
• The year 1999-2000
XXXVIII. Over the past few years what is the average growth rate of Pakistan national income?
• 6%
XXXIX. What is the working percentage of Pakistan’s total population?
• 30%
XL. What is the literacy rate in Pakistan’s total population?
• 57%
XLI. How savings in Pakistan can be increased?
• Decrease in taxes
XLII. How investment in Pakistan can be increased?
• Decrease in interest rate
XLIII. Which step will increase per capita income in Pakistan?
• Increase in investment
XLIV. Pakistan’s GDP is smaller than
• GNP
XLV. What creates difficulty in the process of measurement of national income of
Pakistan?
• Illiteracy and underground economy
XLVI. Which sector of Pakistan has the largest share in Pakistan’s GNP?
• Agriculture
XLVII. What is the percentage of contribution of commodity sector in national income of
Pakistan?
• 48%
XLVIII. When Pakistan started its first five years plan?
• 1955
XLIX. Pakistani exports consists mostly of
• Cotton products
L. The type of economy of Pakistan is
• Developing
LI. Pakistan produces what percentage of its oil requirements?
• 20%
LII. What is the investment rate in Pakistan?
• 18%
LIII. How can the rate of economic development in Pakistan be increased?
• Saving rate increases
LIV. The rate of economic development in Pakistan will fall if
• Smaller percentage of national income is invested
LV. What is the highest government body for economic planning in Pakistan?
• Planning Commission
LVI. In Pakistan economic planning started Prepared By; ECONOMIST ABRAR ALI SHAH...
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LVII. The time period of medium terms plan is Cell No; 0345 -5508825, 0333 -9022232...
• 3 to 5 years
LVIII. Pakistan started its planning experience with
• Colombo Plan
 LIX. How poverty is measured in Pakistan?
• Per capita income and calorie intake
LX. When was nationalization of banks done?
• 1974
LXI. The National Bank of Pakistan is
• Commercial bank
LXII. When was the National Bank of Pakistan established?
• 1949
LXIII. A bank that is established for giving loans to very small enterprises is called
• Micro Finance Bank
LXIV. The banking system of Pakistan
• Developed
LXV. How commercial banks in Pakistan are supervised?
• State Bank of Pakistan
LXVI. The National Bank of Pakistan is a
• Public sector bank
LXVII. The First Women bank is a
• Government bank
LXVIII. Acting as lender of last resort, a central bank lends to whom?
• Commercial banks
LXIX. Who finally approved the budget estimate prepared by the ministry of finance?
• National Assembly
LXX. The public debt of Pakistan is

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• Smaller than GNP
LXXI. Fiscal year of Pakistan starts from
• 1 July
LXXII. Who presented the federal budget of Pakistan in the parliament?
• Finance minister
LXXIII. The most important body which collect taxes in Pakistan is
• Federal Board of Revenue (FBR)
LXXIV. What is the exemption limit for income tax in Pakistan?
• Three Lac
LXXV. What is Pakistan’s expenditure on defense?
• Between 10 % to 25 %
LXXVI. The exports of Pakistan mainly consist of
• Semi manufactured and manufactured goods
LXXVII. Which is the largest item in Pakistan’s import list?
• Petroleum
LXXVIII. The import of petroleum makes up how much of Pakistan’s total
imports bill?
• 25%
LXXIX. What is Pakistan share in the world total cotton textiles?
• Less than 3%
 LXXX. Exports are less than imports in Pakistan’s
• Foreign trade
LXXXI. Who prepared the balance of payments account of Pakistan?
• State Bank of Pakistan
LXXXII. What is the basic principle of Islamic economic system?
• Justice
LXXXIII. Islamic economic system in working market is nearer to
• Mixed economy

Prepared By; ECONOMIST ABRAR ALI SHAH ...

Email; abrarshah.economist@gmail.com
Cell No; 0345-5508825, 0333 -9022232...