1. Which of the following is not concerned with banks?
A. Loan
B. Deposit
C. Insurance
D. Letter of credit
Correct Answer: C
2. Which is the first development bank of Nepal?
A. Nepal Industrial Development Corporation
B. Lumbini Development Bank
C. Housing Development Bank
D. Muktinath Bikas Bank
Correct Answer: A
3. When was co-operative bank established in Nepal?
A. Bhadra 26, 2020
B. Bhadra 27, 2020
C. Bhadra 28, 2020
D. Bhadra 29, 2020
Correct Answer: C
4. How many members are there in BOD of Nepal Rastra Bank?
A. 4
B. 5
C. 6
D. 7
Correct Answer: D
5. CDD denotes to ………………
A. Customer Due Diligence
B. Customer’s Daily Details
C. Compounding Daily Deposit
D. Customer Directed Desk
Correct Answer: A
6. For how many years should reporting entities keep records of suspicious transactions as per Anti-Money Laundering Act, 2064?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Correct Answer: D
7. What does BNI stand for in banking?
A. Best Negotiable Instrument
B. Bearer Negotiable Instrument
C. Batch Negotiable Instrument
D. None of the above
Correct Answer: B
8. In Nepal, Government securities are issued through…………
A. Finance Ministry
B. National Treasury
C. Nepal Rastra Bank
D. All of the above
Correct Answer: C
9. What does BCBS stand for?
A. Basel Committee for Banking Stability
B. Bangkok Committee of Banking Supervision
C. Banking Committee for Bank Sustainability
D. Basel Committee of Banking Supervision
Correct Answer: D
10. How many versions of BASEL norms and accords have been issued so far?
A. 1
B. 2
C. 3
D. 4
Correct Answer: C
11. The fine for not maintaining CRR for a certain period is fined
A. Upto 5% of the insufficient fund to meet CRR
B. As defined and levied by Nepal Rastra Bank
C. Not exceeding 3 times of maximum bank rate for the period
D. None of the above
Correct Answer: C
12. Notice of AGM by BFIs have to be given before…….days of its holding
A. 21
B. 15
C. 35
D. 7
Correct Answer: A
13. The notice period for shareholders of BFIs for special AGM is ………………… Days.
A. 35
B. 21
C. 7
D. 15
Correct Answer: D
14. TMX is the stock exchange of …………………
A. Mexico
B. Belgium
C. Thailand
D. Canada
Correct Answer: D
15. BMNF BOVESPA is the stock exchange of…
A. Brazil
B. Chile
C. Argentina
D. Venezuela
Correct Answer: A
16. How many categories of instruments are traded in NEPSE?
A. 4
B. 5
C. 6
D. 7
Correct Answer: B
17. If cheques received by a firm are not deposited for several days, this represents an increase in the ……………………………float of the depositing firm
A. Collection
B. Payment
C. Net
D. None of the above
Correct Answer: A
18. In futures contracts the pre-set price is called
A. Determined price
B. Future price
C. Call price
D. Foreword price
Correct Answer: B
19. Option to expand is …………………
A. Growth option
B. Expand option
C. Put option
D. Alternate option
Correct Answer: C
20. An agreement to buy or sell currency at the current exchange rate is known as…….
A. Option
B. Future
C. Swap
D. Forward
Correct Answer: A
21. The rate quoted by the bank for buying and selling foreign currency amongst each other is known as……
A. Forex
B. Repo rate
C. Interbank rate
D. Buying rate
Correct Answer: C
22. The authorized dealer buys and sells foreign currency in ……………
A. Selling rate
B. Buying rate
C. Average rate
D. Currency rate
Correct Answer: D
23. …………………are exposed to DEFAULT RISK as compared to treasury securities.
A. Corporate securities
B. Tradeable securities
C. Derivatives
D. Public securities
Correct Answer: A
24. Forward transaction minimizes the …………………
A. Market risk
B. Price risk
C. Operation risk
D. Systematic risk
Correct Answer: B
25. ………………helps to minimize risk out of exchange or interest rate movement.
A. Mutual fund
B. Forex planning
C. Currency reserve
D. Currency Hedging
Correct Answer: D
26. The most widely used monetary policy tool among these is?
A. Open market operations
B. Issuing of notes
C. Close market operations
D. Discount rate
Correct Answer: A
27. Credit can be created by:
A. NRB
B. Foreign banks
C. Commercial banks
D. Private banks
Correct Answer: C
28. Repo Rate means?
A. Rate offered by banks to their premium customers.
B. Rate at which NRB offers loan facilities to commercial banks against government securities, with the condition that banks need to repurchase the securities in a short period.
C. Banks having excess cash can buy securities from NRB with a condition of reselling securities to NRB on a prefixed day and price.
D. Banks can discount bills of exchange and avail loans from NRB at times when cash is needed.
Correct Answer: C
29. Which of the following rules do not apply to banking companies?
A. Companies Act
B. Banking Regulation Act
C. Nepal Rastra Bank Act
D. All of the above
Correct Answer: A
30. Increase in cash reserve ratio (CRR) by the NRB will result in:
A. Initially increase the supply but later on decrease automatically.
B. No impact on the supply of money in the economy
C. Decrease the supply of money in the economy
D. Increase the supply of money in the economy
Correct Answer: C
31. Businesses in capital markets are normally managed by:
A. Governmental treasury departments and sometimes accessed by the public, also
B. Private bodies in the financial sectors
C. International bodies and businesses
D. None of the above
Correct Answer: A
32. How many types of capital are there in BASEL 2?
A. 3
B. 2
C. 1
D. 4
Correct Answer: A
33. How many pillars are there in BASEL III?
A. 1
B. 2
C. 3
D. 4
Correct Answer: C
34. Counter cyclical buffer was provisioned by…………………
A. BASEL 1
B. BASEL 2
C. BASEL 3
D. All of the above
Correct Answer: C
35. What is the minimum capital requirement for BFIs as per BASEL 3 including counter cyclical buffer?
A. 8 %
B. 9%
C. 9.5 %
D. 10.5 %
Correct Answer: D
36. How many different denominations of banknotes have been issued so far in Nepal?
A. 9
B. 10
C. 11
D. 12
Correct Answer: C
37. What does RTGS stand for?
A. Real Time Gross Settlement
B. Rapid Time for Gross Settlement
C. Real Time General System
D. None of the above
Correct Answer: A
38. Which authority used to look after currency affairs in Nepal before Nepal Rastra Bank?
A. Tejarath Adda
B. Takshar Bibhag
C. Sadar Muluki Khana
D. Note Bibhag
Correct Answer: C
39. Which is the smallest currency in the world in terms of size?
A. Manank
B. Jawa
C. Mo Ru
D. None of the above
Correct Answer: B
40. How many members are there in the Audit Committee of Nepal Rastra Bank?
A. 3
B. 5
C. 7
D. 9
Correct Answer: A
41. Which act provisioned the formation of National Coordination Committee?
A. Nepal Rastra Bank Act, 2058
B. Banking Offence and Punishment Act, 2064
C. Anti-Money Laundering Act, 2064
D. Bank and Financial Institution Act, 2073
Correct Answer: C
42. How many members are there in National Coordination Committee?
A. 7
B. 8
C. 9
D. 10
Correct Answer: D
43. According to the Anti-Money Laundering Act, 2064, who holds the chairmanship of National Coordination Committee?
A. Secretary, Finance Ministry
B. Chief Secretary, Nepal Government
C. Chief, Nepal Police
D. Governor, Nepal Rastra Bank
Correct Answer: A
44. What is another name for a stock advance loan?
A. Vehicle loan
B. Business loan
C. Working capital loan
D. Hypothecation loan
Correct Answer: D
45. When did Nepal Rastra Bank issue note for the first time?
A. Falgun 7, 2017
B. Falgun 7, 2016
C. Falgun 7, 2015
D. Falgun 7, 2014
Correct Answer: B
46. What were the denomination of notes issued for the first time by Nepal Rastra Bank?
A. 2, 5, 10 and 100
B. 1, 5, 10 and 100
C. 5, 10, 20 and 100
D. 1, 10, 20 and 100
Correct Answer: B
47. When did the exchange system between Nepalese Currency and Indian Currency Start?
A. Baishakh 1, 2017
B. Baishakh 1, 2018
C. Baishakh 1, 2019
D. Baishakh 1, 2020
Correct Answer: A
48. When did the exchange rate between Nepalese Currency and Indian Currency remain highest?
A. 2041/08/15
B. 2042/08/15
C. 2043/08/15
D. 2044/08/15
Correct Answer: B
49. When did the exchange rate between Nepalese Currency and Indian Currency remain lowest?
A. 2023/01/24
B. 2023/02/24
C. 2023/03/24
D. 2023/04/24
Correct Answer: B
50. When did the exchange rate between Nepalese Currency and Indian Currency remain stable?
A. 2049/10/01
B. 2049/11/01
C. 2050/10/01
D. 2050/11/01
Correct Answer: B
51. How many times did the exchange rate between Nepalese Currency and Indian Currency determined and revised?
A. 9
B. 8
C. 7
D. 6
Correct Answer: A
52. Which of the following is concerned with the Special Drawing Right of IMF?
A. Paper note
B. Foreign reserve
C. Paper gold
D. White gold
Correct Answer: C
53. What are the major types of banking systems in terms of operation?
A. Branch Banking System
B. Unit Banking System
C. Both A and B
D. A only
Correct Answer: C
54. Current accounts do not offer…………to its holders.
A. Interest
B. Cheque
C. Fund transfer
D. All of the above
Correct Answer: A
55. Recurring account has the feature of both ………………
A. Current and fixed account
B. Saving and fixed account
C. Saving and current account
D. Current and call account
Correct Answer: B
56. What is the major provision for customer identification made by Anti-Money Laundering Act, 2064?
A. KYC
B. CDD
C. EDD
D. AML-CFT
Correct Answer: A
57. When was Rs.250 note issued by Nepal Rastra Bank?
A. 2052/12/26
B. 2052/12/27
C. 2052/12/28
D. 2052/12/29
Correct Answer: C
58. The act of educating people about basic and advanced banking service and practice is called………………
A. Financial accessibility
B. Financial inclusion
C. Financial awareness
D. Financial literacy
Correct Answer: D
59. The concept of the Financial Inclusion Portal started from…………………in Nepal.
A. 2075/05/14
B. 2075/06/14
C. 2075/07/14
D. 2075/08/14
Correct Answer: B
60. Which of the documents are mandatory for KYC Purpose?
A. Customer identification document
B. Address verification document
C. Photographs of the account holder
D. All of the above
Correct Answer: D
61. Demand deposit consists of ……………………
A. Current account
B. Fixed account
C. Saving account
D. All of the above
Correct Answer: D
62. Which of the following is/are means of payment?
A. Cheque
B. EFT
C. ATM
D. All of the above
Correct Answer: D
63. Remittances from foreign countries are included in …………………
A. GDP
B. GNP
C. Personal income
D. Government expenditure
Correct Answer: B
64. What is the name of e-banking service which is based on voice processing facility?
A. Tele-banking
B. Online banking
C. Voice banking
D. All form banking
Correct Answer: A
65. What was the authorized capital of Nepal Rastra Bank at the time of its establishment?
A. 1 Million
B. 5 Million
C. 10 Million
D. 15 Million
Correct Answer: C
66. How many independent members are there in the BOD of Nepal Rastra Bank?
A. 3
B. 5
C. 7
D. 9
Correct Answer: A
67. Who chairs the BOD of Nepal Rastra Bank?
A. Governor
B. Prime Minister
C. Finance Minister
D. Chairman
Correct Answer: A
68. The first established central bank of the world is ………………
A. Bank of USA
B. The Swiss Bank
C. Bank of England
D. Bank of Barcelona
Correct Answer: C
69. When was Rastriya Aayojana Bank inaugurated?
A. Magh 6, 2076
B. Magh 16, 2076
C. Magh 26, 2076
D. Falgun 26, 2076
Correct Answer: C
70. Which is the first country to issue paper currency?
A. China
B. USA
C. Spain
D. France
Correct Answer: A
71. There are ……………… classes of BFIs in Nepal?
A. 2
B. 3
C. 4
D. 5
Correct Answer: C
72. The loan having a due period of up to 1 month is called……………
A. Pass loan
B. Watchlist
C. Loss loan
D. None of the above
Correct Answer: A
73. Watchlist is the loan with a due period of ……………………
A. 3 to 6 months
B. 1 to 3 months
C. 3 to 6 months
D. More than 12 months
Correct Answer: B
74. The loan with a due period of 3 to 6 months is called………………
A. Doubtful
B. Substandard
C. Pass
D. Loss
Correct Answer: B
75. Doubtful is the category of loan having a due period of ………………months.
A. 3 to 6
B. 6 to 9
C. 6 to 12
D. More than 12
Correct Answer: C
76. Loss is the category of loan having a due period of …………
A. More than 12 months
B. Less than 12 months
C. Less than 9 months
D. 3 – 6 months
Correct Answer: A
77. Pass loan has loan loss provision of ……………percent
A. 1
B. 5
C. 25
D. 50
Correct Answer: A
78. Watchlist loan has loan loss provision of………………percent to be maintained.
A. 1
B. 5
C. 25
D. 50
Correct Answer: B
79. ……………percent provision has to be maintained for sub-standard loan.
A. 1
B. 5
C. 25
D. 50
Correct Answer: C
80. What percent of provision is required for a doubtful category of loan?
A. 1 %
B. 5 %
C. 25 %
D. 50 %
Correct Answer: D
81. ……………… percent provision is to be maintained for loss category of loan.
A. 100
B. 50
C. 25
D. 5
Correct Answer: A
82. Interest rate corridor is a tool used by…………………
A. Fiscal Policy
B. Monetary Policy
C. Finance Policy
D. Banking Policy
Correct Answer: B
83. Interest rate corridor has ……………… levels of interest rates.
A. 2
B. 3
C. 4
D. 5
Correct Answer: B
84. The upper ceiling of interest rate corridor adopted by Nepal Rastra Bank?
A. Deposit rate
B. Policy Rate
C. Bank Rate
D. Base Rate
Correct Answer: C
85. The lower ceiling of interest rate corridor adopted by Nepal Rastra Bank?
A. Deposit rate
B. Policy Rate
C. Bank Rate
D. Base Rate
Correct Answer: A
86. The midpoint of interest rate corridor adopted by Nepal Rastra Bank?
A. Deposit rate
B. Policy Rate
C. Bank Rate
D. Base Rate
Correct Answer: B
87. The difference in interest on deposit and interest on loan by BFIs is reflected by………
A. Base Rate
B. Spread Rate
C. Policy Rate
D. Repo Rate
Correct Answer: B
88. According to BAFIA, 2073, the maximum tenure a CEO can enjoy is………years.
A. 4
B. 6
C. 8
D. 12
Correct Answer: C
89. BOE means…………in banking.
A. Bill of Exchange
B. Bill of Export
C. Bill of Expenses
D. None of the above
Correct Answer: A
90. Which of the following rate mostly affects the interest rate of loan?
A. Base Rate
B. Spread Rate
C. Bank Rate
D. Policy Rate
Correct Answer: A
91. What is the minimum Capital Adequacy Ratio to be maintained by Nepalese commercial banks?
A. 8 %
B. 9 %
C. 10 %
D. 11 %
Correct Answer: D
92. Leverage ratio, net stable fund ratio and liquidity coverage ratio are the provisions of ………………
A. BASEL I
B. BASEL II
C. BASEL III
D. None of the above
Correct Answer: C
93. According to Monetary Policy 2079/80, what is the targeted inflation rate?
A. 5 %
B. 6 %
C. 7 %
D. Within 7 %
Correct Answer: D
94. What is the deposit rate as per Monetary Policy 2079/80?
A. 5.5 %
B. 7 %
C. 8.5 %
D. 10 %
Correct Answer: A
95. What is the policy rate as per Monetary Policy 2079/80?
A. 5.5 %
B. 7 %
C. 8.5 %
D. 10 %
Correct Answer: B
96. What is the bank rate as per Monetary Policy 2079/80?
A. 5.5 %
B. 7 %
C. 8.5 %
D. 10 %
Correct Answer: C
97. What is the Statutory Liquidity Ratio (SLR) requirement for commercial banks as per Monetary Policy 2079/80?
A. 10 %
B. 11 %
C. 12 %
D. 13 %
Correct Answer: C
98. How many countries of Europe have approved Euro as their key transaction currency?
A. 18
B. 20
C. 22
D. 24
Correct Answer: B
99. Which of the following act was replaced by Nepal Rastra Bank Act, 2058?
A. Nepal Rastra Bank Act, 2012
B. Commercial Bank Act, 2031
C. Both A and B
D. None of the above
Correct Answer: A
100. Which governor has the shortest tenure of office at Nepal Rastra Bank?
A. Dipendra Bahadur Chhetri
B. Dipendra Purush Dhakal
C. Satendra Pyara Shrestha
D. Hari Shankar Tripathi
Correct Answer: A
