Nepal: Economy and Development Basics

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Central bank, banking, planning, hydropower, trade and key economic institutions of Nepal.

This Lok Sewa practice set has 20 multiple-choice questions (Subject: General Knowledge · For: Kharidar, Nayab Subba, Section Officer · Level: Medium). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.

Study list: all 20 questions with answers and explanations
  1. In which year was Nepal Rastra Bank, the central bank of Nepal, established?

    • A) 1994 BS
    • B) 2007 BS
    • C) 2022 BS
    • D) 2013 BS ✔

    Why: Nepal Rastra Bank was established on Baisakh 14, 2013 BS (1956 AD) under the Nepal Rastra Bank Act 2012.

  2. Which was the first commercial bank of Nepal?

    • A) Rastriya Banijya Bank
    • B) Nepal Bank Limited ✔
    • C) Agricultural Development Bank
    • D) Nepal Investment Bank

    Why: Nepal Bank Limited, established in 1994 BS (1937 AD), was the first commercial bank of Nepal.

  3. On which date does Nepal's fiscal year begin?

    • A) Shrawan 1 ✔
    • B) Baisakh 1
    • C) Magh 1
    • D) Ashadh 1

    Why: Nepal's fiscal year starts on Shrawan 1 and ends on the last day of Ashadh.

  4. In which year did Nepal start its first five-year plan?

    • A) 2007 BS
    • B) 2017 BS
    • C) 2013 BS ✔
    • D) 2019 BS

    Why: Planned development began with the First Five-Year Plan (2013 to 2018 BS), along with the formation of the National Planning Commission.

  5. Who chairs the National Planning Commission of Nepal?

    • A) The Finance Minister
    • B) The Prime Minister ✔
    • C) The President
    • D) The Governor of Nepal Rastra Bank

    Why: The Prime Minister is the ex-officio chairperson of the National Planning Commission.

  6. Which was Nepal's first hydropower plant, commissioned in 1968 BS (1911 AD)?

    • A) Sundarijal
    • B) Panauti
    • C) Trishuli
    • D) Pharping ✔

    Why: Pharping Hydropower Station, with a capacity of 500 kW, was the first hydropower plant of Nepal.

  7. During whose rule was the Pharping hydropower plant built?

    • A) Jung Bahadur Rana
    • B) Bir Shamsher
    • C) Chandra Shamsher ✔
    • D) Juddha Shamsher

    Why: Pharping hydropower was built in 1968 BS during the rule of Rana Prime Minister Chandra Shamsher.

  8. In which year did Nepal become a member of the World Trade Organization (WTO)?

    • A) 2004 AD ✔
    • B) 1995 AD
    • C) 2001 AD
    • D) 2011 AD

    Why: Nepal joined the WTO on 23 April 2004 AD.

  9. Nepal joined the WTO as its member number what?

    • A) 131st
    • B) 140th
    • C) 150th
    • D) 147th ✔

    Why: Nepal became the 147th member of the WTO in 2004 AD.

  10. Under which Act does Nepal Rastra Bank operate at present, replacing its original 2012 BS Act?

    • A) Nepal Rastra Bank Act 2063
    • B) Nepal Rastra Bank Act 2058 ✔
    • C) Nepal Rastra Bank Act 2048
    • D) Nepal Rastra Bank Act 2072

    Why: Nepal Rastra Bank now works under the Nepal Rastra Bank Act 2058 BS (2002 AD), which replaced the Nepal Rastra Bank Act 2012 and gave the bank greater autonomy.

  11. In which year was Nepal Stock Exchange (NEPSE) established?

    • A) 2050 BS ✔
    • B) 2033 BS
    • C) 2013 BS
    • D) 2063 BS

    Why: The Securities Exchange Centre, set up in 2033 BS, was converted into Nepal Stock Exchange in 2050 BS (1993 AD).

  12. In which year was Value Added Tax (VAT) implemented in Nepal?

    • A) 2046 BS
    • B) 2062 BS
    • C) 2054 BS ✔
    • D) 2072 BS

    Why: VAT was implemented in Nepal from Mangsir 1, 2054 BS (1997 AD) under the Value Added Tax Act 2052.

  13. Which is regarded as the first modern large industry of Nepal?

    • A) Biratnagar Jute Mill ✔
    • B) Hetauda Cement Factory
    • C) Bhrikuti Paper Mill
    • D) Janakpur Cigarette Factory

    Why: Biratnagar Jute Mill, established in 1993 BS (1936 AD), is considered the first modern industry of Nepal.

  14. On which date does the Constitution of Nepal require the federal budget to be presented each year?

    • A) Shrawan 1
    • B) Baisakh 1
    • C) Jestha 15 ✔
    • D) Ashadh 31

    Why: Article 119 of the Constitution of Nepal requires the Finance Minister to present the annual budget on Jestha 15.

  15. Which country is Nepal's largest trading partner?

    • A) China
    • B) United States
    • C) Bangladesh
    • D) India ✔

    Why: India has long been Nepal's largest trading partner, accounting for the majority of Nepal's foreign trade.

  16. Which is regarded as the first cooperative organisation of Nepal?

    • A) Sajha Yatayat
    • B) Bakhan Cooperative Credit Society, Chitwan ✔
    • C) Salt Trading Corporation
    • D) Gorkhapatra Sansthan

    Why: The Bakhan Cooperative Credit Society, set up in Chitwan in 2013 BS, is considered the first cooperative of Nepal.

  17. In which year was the Nepal Electricity Authority established?

    • A) 2013 BS
    • B) 2028 BS
    • C) 2042 BS ✔
    • D) 2058 BS

    Why: Nepal Electricity Authority was established in 2042 BS (1985 AD) to generate, transmit and distribute electricity.

  18. Which of the following has long been one of Nepal's major export products?

    • A) Hand-knotted woollen carpets ✔
    • B) Crude petroleum
    • C) Motor vehicles
    • D) Steel ships

    Why: Woollen carpets, along with pashmina and readymade garments, have long been among Nepal's major exports.

  19. Under which Prime Minister was Nepal's first five-year plan launched?

    • A) B. P. Koirala
    • B) Tanka Prasad Acharya ✔
    • C) Matrika Prasad Koirala
    • D) K. I. Singh

    Why: The First Five-Year Plan was launched in 2013 BS during the premiership of Tanka Prasad Acharya.

  20. Which body publishes Nepal's annual Economic Survey along with the budget?

    • A) Nepal Rastra Bank
    • B) National Planning Commission
    • C) National Statistics Office
    • D) Ministry of Finance ✔

    Why: The Ministry of Finance publishes the Economic Survey each year before the budget is presented.

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