The main function of the State Bank of Pakistan is to

The main function of the State Bank of Pakistan is to
A: Control loans
B: Run lending business
C: Implement monetary policy
D: None of these

The central bank issues currency manages monetary policy regulates banks and acts as lender of last resort. Its job is not to operate a retail lending business. Policy tools include reserve requirements open market operations and policy rate signals. These instruments target inflation and financial stability. Therefore the core function in exams is implementation of monetary policy.