Skip to content

Home
Take A Quiz
Take A Exam
Exams
- CSS
- PMS
- NTS
- All Exams
Current Affairs
- Pakistan Current Affairs
- International Current Affairs
Topics
- History
- Geography
- Science
- Technology
- All Topics
Login/ Signup

🏠 Home › MCQs › Pakistan Current Affairs › Question

What major risk arises when a banking system’s holdings of government securities amount to around half of its total assets?

👤

By Zain

✅

Fact Checked

📊

Difficulty Medium

📅

Published 11 Feb 2026

A. Excessive growth in foreign direct investment.

B. Uncontrolled expansion of private sector lending.

C. Linkage of bank credit strength to the sovereign rating.

D. Accelerated depletion of national foreign reserves.

💡 Explanation:

When a bank's assets are heavily concentrated in government securities (sovereign debt), its credit strength becomes directly linked to the creditworthiness of the government. This systemic risk is known as the 'bank-sovereign nexus,' where a sovereign debt crisis can directly trigger a banking crisis.

📚 Topics: Pakistan Current Affairs

🎯 Exams: CSS NTS PMS UK_CS US_COMP

🏷️ Tags: Banking Sector Financial Stability Public Finance Sovereign Debt Systemic Risk

💡 Found this helpful? Share with friends!

Facebook X WhatsApp Copy Link

🔗 Related Questions You May Like

📝 Which parliamentary mechanism allows for the discussion of sensitive national security or diplomatic matters away from public and media scrutiny?
📝 Which chemical compound is the primary cause of toxicity and death in cases of adulterated or illicit homemade liquor?
📝 Which institution serves as the permanent secretariat for the National Economic Council (NEC) of Pakistan?
📝 What is the formal name of the 909-kilometer international boundary demarcated between Iran and Pakistan?
📝 In the context of hybrid warfare, which term defines the use of factual information shared with the intent to cause harm or social fragmentation?

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search Here

Follow on SMNs

WhatsApp
Facebook
Instagram
YouTube

📧 Subscribe for Daily MCQs

Get fresh MCQs delivered to your inbox

✅ No spam. Unsubscribe anytime.

Current Affairs

International Current Affairs611
Pakistan Current Affairs414

Exams

CSS1929
GEN2252
NTS1205
PMS1896
UK CS638
US COMP759

All Topics

Arts and Culture177
Business and Economics177
Environment and Conservation68
Food and Cuisine64
Geography155
History130
Inventions and Discoveries62
Language and Linguistics39
Miscellaneous137
Mythology and Folklore22
Pakistan347
Politics and Government80
Religion and Philosophy34
Science275
Sports183
Technology and Computing146

Home
Take A Quiz
Take A Exam
Topics
- Geography
- History
- Science
- Technology
- All Topics
Exams
- GEN
- CSS
- PMS
- NTS
- All Exams
International Current Affairs
Pakistan Current Affairs
Contact US
Login/ Signup

Home
Contact US
Privacy Policy
Terms of Service
All Topics
All Exams

Copyright © 2026 The Quiz Wire

Scroll to Top