About this quiz
20 questions covering every section of the note.
This Lok Sewa practice set has 20 multiple-choice questions (Subject: Banking and Finance · For: Kharidar, Nayab Subba, Section Officer · Level: Easy). 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
Banking through a mobile app is called:
- A) Mobile banking ✔
- B) Branch banking
- C) Cheque banking
- D) Barter banking
Why: Mobile banking lets customers check balances, transfer money and pay bills through a bank's app or SMS.
A card that pays directly from your bank account is a:
- A) Debit card ✔
- B) Credit card
- C) Gift card
- D) ID card
Why: A debit card takes money directly from your own bank account when you pay or withdraw cash.
A card that lets you borrow and pay later is a:
- A) Credit card ✔
- B) Debit card
- C) ATM slip
- D) Cheque
Why: A credit card lets you spend borrowed money up to a limit and pay later; interest is charged if you pay late.
POS stands for:
- A) Point of Sale ✔
- B) Post Office Service
- C) Payment Online System
- D) Price of Stock
Why: POS means Point of Sale: the card machine at shops where customers pay by card.
Which was Nepal's first digital wallet?
- A) eSewa ✔
- B) Khalti
- C) IME Pay
- D) ConnectIPS
Why: eSewa, started in 2009, was Nepal's first digital wallet.
Paying by scanning a code with a phone is:
- A) QR payment ✔
- B) Cheque payment
- C) Cash payment
- D) Draft payment
Why: QR payment: you scan the shop's QR code with a bank or wallet app and confirm the amount.
ConnectIPS is run by:
- A) Nepal Clearing House Limited ✔
- B) NEPSE
- C) SEBON
- D) Nepal Telecom
Why: ConnectIPS, for direct account-to-account payments, is run by Nepal Clearing House Limited (NCHL).
Electronic Cheque Clearing is run by:
- A) NCHL ✔
- B) IRD
- C) PSC
- D) CAAN
Why: NCHL runs Electronic Cheque Clearing (ECC), which clears cheques digitally instead of physically.
Which law governs payment systems in Nepal?
- A) Payment and Settlement Act 2075 ✔
- B) Company Act 2063
- C) Labour Act 2074
- D) Customs Act
Why: The Payment and Settlement Act, 2075 governs payment systems, providers and operators in Nepal.
Who licenses payment service providers in Nepal?
- A) Nepal Rastra Bank ✔
- B) Ministry of Communication
- C) NEPSE
- D) Nepal Telecom
Why: Nepal Rastra Bank licenses and supervises payment service providers and operators.
Digital wallets are licensed as:
- A) Payment Service Providers ✔
- B) Commercial banks
- C) Insurance companies
- D) Cooperatives
Why: Digital wallets such as eSewa and Khalti are licensed by NRB as Payment Service Providers (PSPs).
Which law recognises digital signatures in Nepal?
- A) Electronic Transactions Act 2063 ✔
- B) Banking Act
- C) Civil Code only
- D) Contract Act
Why: The Electronic Transactions Act, 2063 recognises electronic records and digital signatures and punishes cybercrime.
OTP stands for:
- A) One-Time Password ✔
- B) Online Transfer Payment
- C) Official Transaction PIN
- D) Open Transfer Protocol
Why: OTP is One-Time Password, a code sent by SMS or app that works for only one transaction or login.
What should you do if someone asks for your OTP claiming to be from a bank?
- A) Never share it ✔
- B) Share it quickly
- C) Post it online
- D) Send it by SMS
Why: Never share it. Banks never ask for your OTP or PIN; anyone who does is a fraudster.
Fake messages trying to steal passwords are called:
- A) Phishing ✔
- B) Clearing
- C) Settlement
- D) Remittance
Why: Phishing is fake messages, emails or websites that trick people into giving passwords, PINs or OTPs.
Which network lets users of many banks pay with one QR code?
- A) Fonepay ✔
- B) SWIFT only
- C) Western Union
- D) NEPSE
Why: Fonepay is a payment network that lets customers of many banks and wallets pay using one QR code. NepalPay is another.
Nepal has started linking QR payments with India's:
- A) UPI ✔
- B) SWIFT
- C) SEPA
- D) NEFT only
Why: Nepal has started linking its QR payments with India's UPI (Unified Payments Interface) for cross-border payments.
A benefit of digital payments is:
- A) Fast 24-hour payments ✔
- B) More cash handling
- C) No records
- D) Longer queues
Why: Digital payments work 24 hours a day, are fast, reduce cash handling and keep a record of every transaction.
ATM stands for:
- A) Automated Teller Machine ✔
- B) Any Time Money
- C) Automatic Transfer Mode
- D) Account Transfer Machine
Why: ATM is Automated Teller Machine, used to withdraw cash and check balances.
The National Payment Switch is operated by:
- A) NCHL ✔
- B) NRB directly
- C) Ministry of Finance
- D) eSewa
Why: NCHL operates the National Payment Switch, which links card and digital payments across Nepali banks.