The document discusses money and banking systems. It defines money and describes the functions of money. It explains the different components that make up the money supply, including M-1 and M-2. It discusses various financial institutions like commercial banks and what services they provide. It then focuses on the financial system and central bank of Pakistan, the State Bank of Pakistan, outlining its roles and responsibilities, including overseeing monetary policy and using tools like reserve requirements, discount rates, and open market operations. It concludes by briefly defining the World Bank and International Monetary Fund.

1. CHAPTER 18 Understanding Money and Banking

3. What is Money? Any object that is portable, divisible, durable and stable and that serves as a medium of exchange, a store of value and a unit of account

10. STATE BANK OF PAKISTAN “ The State Bank” is the Central bank of Pakistan, which acts as the government’s bank, serves member commercial banks, and controls the nation’s money supply.

16. What is the World Bank? U. N. agency that provides a limited scope of financial services

17. What is the International Monetary Fund (IMF)? U.N. agency consisting of about 150 nations that have combined resources to promote stable exchange rates, provide temporary short-term loans and serve other purposes