About this quiz
52 questions covering every section of the note.
This Lok Sewa practice set has 52 multiple-choice questions (Subject: Economics and Planning · 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 52 questions with answers and explanations
Aid that does not need to be repaid is a:
- A) Loan
- B) Grant ✔
- C) Bond
- D) Debenture
Why: A grant is aid that does not need to be repaid.
Aid from the World Bank or ADB is:
- A) Bilateral aid
- B) Multilateral aid ✔
- C) Private aid
- D) Remittance
Why: Aid from bodies like the World Bank or ADB, funded by many countries, is multilateral aid.
Aid from Japan directly to Nepal is:
- A) Bilateral aid ✔
- B) Multilateral aid
- C) FDI
- D) Remittance
Why: Aid from one country directly to another, such as Japan to Nepal, is bilateral aid.
Nepal received its first foreign aid from:
- A) India
- B) USA ✔
- C) UK
- D) China
Why: Nepal received its first foreign aid from the USA.
Nepal's first foreign aid was received in:
- A) 1947
- B) 1951 ✔
- C) 1960
- D) 1975
Why: Nepal's first foreign aid came in 1951.
The first US aid to Nepal was under the:
- A) Marshall Plan
- B) Point Four Program ✔
- C) Colombo Plan
- D) MCC
Why: The first US aid to Nepal came under President Truman's Point Four Program.
Which policy guides foreign aid in Nepal?
- A) International Development Cooperation Policy 2076 ✔
- B) Monetary Policy
- C) Trade Policy 2072
- D) Forest Policy
Why: Foreign aid is guided by the International Development Cooperation Policy.
The MCC Nepal Compact is a grant of about:
- A) USD 50 million
- B) USD 500 million ✔
- C) USD 5 billion
- D) USD 5 million
Why: The MCC Nepal Compact is a USD 500 million US grant for power transmission and roads.
The MCC Compact was ratified by Nepal's Parliament in:
- A) 2072 BS
- B) 2075 BS
- C) 2078 BS ✔
- D) 2081 BS
Why: Nepal's Parliament ratified the MCC Compact in 2078 BS (February 2022).
Money sent home by Nepalis working abroad is:
- A) FDI
- B) Remittance ✔
- C) Foreign aid
- D) Export income
Why: Money sent home by Nepalis working abroad is remittance.
Remittance equals about what share of Nepal's GDP?
- A) 5%
- B) About a quarter ✔
- C) Half
- D) Three-quarters
Why: Remittance is equal to about a quarter of Nepal's GDP.
Which law regulates foreign employment?
- A) Foreign Employment Act 2064 ✔
- B) FITTA 2075
- C) Labour Act 2074
- D) Immigration Act 2049
Why: Foreign employment is regulated by the Foreign Employment Act, 2064.
Workers going abroad need a:
- A) Labour permit ✔
- B) Trade licence
- C) PAN card only
- D) Driving licence
Why: Workers going abroad need a labour permit from the Department of Foreign Employment.
South Korea hires Nepali workers through the:
- A) Employment Permit System ✔
- B) Point Four Program
- C) Colombo Plan
- D) MCC
Why: South Korea hires Nepali workers through the Employment Permit System (EPS).
FDI in Nepal is governed by:
- A) FITTA 2075 ✔
- B) BAFIA 2073
- C) Securities Act 2063
- D) Company Act 2063
Why: FDI is governed by the Foreign Investment and Technology Transfer Act (FITTA), 2075.
Investment Board Nepal was set up in:
- A) 2058 BS
- B) 2068 BS ✔
- C) 2075 BS
- D) 2048 BS
Why: Investment Board Nepal was set up in 2068 BS.
Who chairs Investment Board Nepal?
- A) Finance Minister
- B) Prime Minister ✔
- C) Governor of NRB
- D) Industry Minister
Why: The Prime Minister chairs Investment Board Nepal.
Which is a negative effect of heavy remittance dependence?
- A) Loss of young workers ✔
- B) More foreign exchange
- C) Less poverty
- D) Better education
Why: Heavy remittance dependence pulls young workers out of the country, leaving labour shortages at home.
Long-term foreign investment with management control is:
- A) FDI ✔
- B) Remittance
- C) Grant
- D) Portfolio aid
Why: FDI is long-term foreign investment with a lasting management interest.
Foreign aid in Nepal is coordinated by the:
- A) Ministry of Finance ✔
- B) Ministry of Home Affairs
- C) Nepal Rastra Bank
- D) Election Commission
Why: Foreign aid is coordinated by the Ministry of Finance.
Aid that must be spent on goods or services from the donor country is called:
- A) Tied aid ✔
- B) Untied aid
- C) Budget support
- D) Remittance
Why: Tied aid must be spent on goods or services from the donor country.
Aid given as experts, training and advice rather than money is:
- A) Technical assistance ✔
- B) Commodity aid
- C) Food aid
- D) Portfolio investment
Why: Technical assistance gives experts, training and advice instead of money.
A loan with low interest and a long repayment period is a:
- A) Concessional loan ✔
- B) Commercial loan
- C) Grant
- D) Overdraft
Why: A concessional loan has low interest and a long repayment period.
Which ministry coordinates foreign aid in Nepal?
- A) Ministry of Finance ✔
- B) Ministry of Home Affairs
- C) Ministry of Education
- D) Ministry of Defence
Why: The International Economic Cooperation Coordination Division of the Ministry of Finance coordinates aid.
Nepal's online system that records foreign aid information is the:
- A) Aid Management Platform ✔
- B) Nagarik App
- C) Hello Sarkar
- D) e-Bidding portal
Why: The Aid Management Platform records foreign aid information online.
Nepal became a member of the World Bank and the IMF in:
- A) 1961 ✔
- B) 1951
- C) 1971
- D) 1990
Why: Nepal joined the World Bank and IMF in 1961.
Nepal is a founding member of the Asian Development Bank, established in:
- A) 1966 ✔
- B) 1956
- C) 1976
- D) 1985
Why: Nepal is a founding member of the Asian Development Bank, set up in 1966.
Nepal joined the Colombo Plan in:
- A) 1952 ✔
- B) 1962
- C) 1972
- D) 1982
Why: Nepal joined the Colombo Plan in 1952.
The Tribhuvan Rajpath was built with assistance from:
- A) India ✔
- B) China
- C) Japan
- D) USA
Why: The Tribhuvan Rajpath was built with Indian assistance.
The Araniko (Kodari) Highway was built with assistance from:
- A) China ✔
- B) India
- C) Japan
- D) United Kingdom
Why: The Araniko (Kodari) Highway was built with Chinese assistance.
Chinese economic aid to Nepal formally began in:
- A) 1956 ✔
- B) 1951
- C) 1961
- D) 1972
Why: Chinese economic aid to Nepal formally began in 1956.
The Janakpur Cigarette Factory was built with aid from the:
- A) Soviet Union ✔
- B) USA
- C) Japan
- D) Germany
Why: The Janakpur Cigarette Factory was built with Soviet aid.
Aid given directly into the government budget instead of a single project is:
- A) Budget support ✔
- B) Project aid
- C) Tied aid
- D) Humanitarian aid
Why: Budget support is aid given into the government budget rather than a single project.
Which international declaration (2005) is about aid effectiveness?
- A) Paris Declaration ✔
- B) Kyoto Protocol
- C) Rio Declaration
- D) Geneva Convention
Why: The Paris Declaration on Aid Effectiveness (2005) set principles for better aid.
Which ministry looks after foreign employment in Nepal?
- A) Ministry of Labour, Employment and Social Security ✔
- B) Ministry of Foreign Affairs
- C) Ministry of Industry
- D) Ministry of Health
Why: The Ministry of Labour, Employment and Social Security looks after foreign employment.
Labour permits for foreign employment are issued by the:
- A) Department of Foreign Employment ✔
- B) Department of Immigration
- C) Department of Passports
- D) Nepal Rastra Bank
Why: The Department of Foreign Employment issues labour permits.
The fund that supports migrant workers and their families is the:
- A) Foreign Employment Welfare Fund ✔
- B) Citizen Investment Trust
- C) Employees Provident Fund
- D) Social Security Fund only
Why: The Foreign Employment Welfare Fund supports migrant workers and their families.
Sending money home through illegal informal channels is called:
- A) Hundi ✔
- B) Remittance bond
- C) Letter of credit
- D) Swift transfer
Why: Hundi is sending money through illegal informal channels.
Before going abroad for work, workers must attend:
- A) Pre-departure orientation training ✔
- B) Military training
- C) University entrance
- D) Driving test
Why: Workers must attend pre-departure orientation training before going abroad.
The "free visa, free ticket" policy (2015) mainly applied to workers going to:
- A) Gulf countries and Malaysia ✔
- B) Europe and USA
- C) India and China
- D) Japan and Korea
Why: The 2015 'free visa, free ticket' policy applied to workers going to the Gulf countries and Malaysia.
Loss of skilled people to other countries is called:
- A) Brain drain ✔
- B) Brain gain
- C) Capital flight
- D) Inflation
Why: Brain drain is the loss of skilled people to other countries.
Which law governs foreign investment in Nepal now?
- A) Foreign Investment and Technology Transfer Act 2075 ✔
- B) Company Act 2063
- C) Labour Act 2074
- D) Banking Offence Act
Why: Foreign investment is governed by the Foreign Investment and Technology Transfer Act, 2075.
Large investment projects in Nepal are approved by the Investment Board Nepal, chaired by the:
- A) Prime Minister ✔
- B) Finance Minister
- C) President
- D) NRB Governor
Why: Investment Board Nepal, chaired by the Prime Minister, approves large investment projects.
Investment Board Nepal was formed under the Investment Board Act of:
- A) 2068 BS ✔
- B) 2058 BS
- C) 2075 BS
- D) 2048 BS
Why: Investment Board Nepal was formed under the Investment Board Act, 2068.
Smaller foreign investment proposals are approved by the:
- A) Department of Industry ✔
- B) Department of Customs
- C) Election Commission
- D) Public Service Commission
Why: Smaller foreign investment proposals are approved by the Department of Industry.
Nepal's first operational Special Economic Zone is in:
- A) Bhairahawa ✔
- B) Biratnagar
- C) Birgunj
- D) Pokhara
Why: Nepal's first operational Special Economic Zone is in Bhairahawa.
An agreement that protects investors of two countries is a:
- A) BIPPA ✔
- B) DTAA
- C) WTO
- D) SAFTA
Why: A BIPPA (Bilateral Investment Promotion and Protection Agreement) protects investors of two countries.
An agreement so that income is not taxed twice in two countries is a:
- A) Double Taxation Avoidance Agreement ✔
- B) Free Trade Agreement
- C) Transit Treaty
- D) Extradition Treaty
Why: A Double Taxation Avoidance Agreement stops the same income being taxed in two countries.
By the IMF definition, FDI usually means owning at least what share of a foreign company?
- A) 10 percent ✔
- B) 1 percent
- C) 50 percent
- D) 100 percent
Why: By the IMF definition, FDI usually means owning at least 10% of a foreign company.
Buying shares only for financial return, without control, is:
- A) Portfolio investment ✔
- B) FDI
- C) Grant
- D) Joint venture
Why: Portfolio investment buys shares only for financial return, without control.
Profit sent back home by a foreign investor is called:
- A) Repatriation ✔
- B) Remittance
- C) Royalty
- D) Subsidy
Why: Profit sent back home by a foreign investor is repatriation.
Nepal's annual report on aid received is the:
- A) Development Cooperation Report ✔
- B) Economic Survey only
- C) Auditor General Report
- D) Census Report
Why: The Ministry of Finance publishes the annual Development Cooperation Report on aid received.