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
When was Nepal Rastra Bank established?
- A) 14 Baisakh 2013 BS ✔
- B) 30 Kartik 1994 BS
- C) 1 Shrawan 2022 BS
- D) 7 Falgun 2007 BS
Why: NRB was established on 14 Baisakh 2013 BS.
Who was the first governor of Nepal Rastra Bank?
- A) Himalaya Shumsher JB Rana ✔
- B) Ganesh Bahadur Thapa
- C) Bijaya Nath Bhattarai
- D) Yuba Raj Khatiwada
Why: Himalaya Shumsher JB Rana was the first governor.
Nepal Rastra Bank currently works under which Act?
- A) NRB Act 2012
- B) NRB Act 2058 ✔
- C) Banking Act 2031
- D) Company Act 2063
Why: It works under the NRB Act 2058.
Where is the central office of Nepal Rastra Bank?
- A) Thapathali
- B) Baluwatar ✔
- C) Singha Durbar
- D) Dharahara
Why: The central office is at Baluwatar, Kathmandu.
The governor of NRB is appointed for:
- A) 3 years
- B) 4 years
- C) 5 years ✔
- D) 6 years
Why: The governor serves a 5-year term.
Who appoints the governor of Nepal Rastra Bank?
- A) President on his own
- B) Government of Nepal ✔
- C) Parliament
- D) Supreme Court
Why: The Government of Nepal appoints the governor.
Who has the sole right to issue Nepali currency?
- A) Ministry of Finance
- B) Nepal Rastra Bank ✔
- C) Nepal Bank Limited
- D) Rastriya Banijya Bank
Why: Only NRB issues Nepali banknotes and coins.
When NRB lends to banks during a crisis, it acts as:
- A) Lender of last resort ✔
- B) Commercial lender
- C) Insurance company
- D) Tax collector
Why: This is the lender of last resort function.
Which was the first commercial bank of Nepal?
- A) Nabil Bank
- B) Nepal Bank Limited ✔
- C) Rastriya Banijya Bank
- D) Agricultural Development Bank
Why: Nepal Bank Limited was set up in 1994 BS.
Tejarath Adda was established during the rule of:
- A) Jung Bahadur
- B) Ranodip Singh ✔
- C) Chandra Shumsher
- D) Juddha Shumsher
Why: It was set up in 1933 BS under Ranodip Singh.
Nepal Bank Limited was established in:
- A) 1994 BS ✔
- B) 2013 BS
- C) 2022 BS
- D) 1933 BS
Why: It was established on 30 Kartik 1994 BS.
Monetary policy in Nepal is formulated by:
- A) Ministry of Finance
- B) Nepal Rastra Bank ✔
- C) National Planning Commission
- D) NEPSE
Why: NRB formulates monetary policy.
The fixed exchange rate between the Indian rupee and Nepali rupee is:
- A) 1 INR = 1.00 NPR
- B) 1 INR = 1.50 NPR
- C) 1 INR = 1.60 NPR ✔
- D) 1 INR = 2.00 NPR
Why: The peg is 1 INR = 1.60 NPR.
Whose signature appears on Nepali banknotes?
- A) Finance Minister
- B) Prime Minister
- C) Governor of NRB ✔
- D) President
Why: The NRB governor signs the banknotes.
NRB acting as the government's banker means it:
- A) Keeps government accounts and manages public debt ✔
- B) Collects all taxes
- C) Prepares the budget
- D) Audits ministries
Why: It keeps accounts, makes payments and manages public debt.
Commercial banks keep their reserves with NRB. This shows NRB is a:
- A) Bankers' bank ✔
- B) Development bank
- C) Microfinance
- D) Cooperative
Why: NRB is the bankers' bank.
Which is NOT a function of Nepal Rastra Bank?
- A) Issuing currency
- B) Supervising banks
- C) Collecting income tax ✔
- D) Managing foreign exchange
Why: Income tax is collected by the Inland Revenue Department.
One main objective of NRB is to keep ____ stable.
- A) Prices and balance of payments ✔
- B) Crop yields
- C) Population
- D) Tourism
Why: Price and BoP stability is a key objective.
How many paisa make one Nepali rupee?
- A) 50
- B) 100 ✔
- C) 1000
- D) 10
Why: 1 rupee = 100 paisa.
Nepal Rastra Bank was originally set up under which Act?
- A) NRB Act 2012 ✔
- B) NRB Act 2058
- C) Bank and Financial Institutions Act 2073
- D) Foreign Exchange Act 2019
Why: It was set up under the NRB Act 2012.