Correct Answer:
B. Regulate Monetary Policy
The State Bank of Pakistan (SBP) functions as the central bank of the country, and one of its core responsibilities is to Regulate Monetary Policy. This involves managing the money supply, controlling inflation, and influencing interest rates to maintain economic stability and growth.
- Option A, 'Prepare annual budget', is incorrect because this is a function of the Ministry of Finance, not the central bank.
- Option C, 'Open accounts for public', is also incorrect as this is a service provided by commercial banks, whereas the SBP primarily deals with commercial banks and the government.
- Therefore, regulating monetary policy is the precise and accurate function of the SBP.