NRB Assistant Director Pretest Set 8 – MCQ Solved

Topic – Economy, Trade & Industry

1) Which of the following countries grows the largest amount of jute?

  1. India
  2. Bangladesh
  3. Sri Lanka
  4. Nepal

Check the ranking

2) Poverty Alleviation Fund (PAF) was established in Nepal in

  1. 2055 BS
  2. 2060 BS
  3. 2065 BS
  4. 2070 BS

3) Which of the following has a major impact on international trade?

  1. Contribution to GDP
  2. Per Capita Income
  3. Industrialization
  4. None of the above

4) The reduction in the value of plant and machinery during the process of manufacturing is known as

  1. NNP
  2. GDP
  3. Depreciation
  4. Consumption

5) What kind of costs are irrelevant when making decisions?

  1. Sunk costs
  2. Marginal costs
  3. Fixed costs
  4. Variable costs

Sunk costs are past costs that have already been incurred and cannot be recovered, so they shouldn’t affect current or future decisions.

6) Which of the following would shift a firm’s short-run cost curves upward?

  1. An advanced in technology
  2. An increase in employee wages
  3. A decrease in demand for the firm’s product
  4. A reduction in excise taxes levied on the firm’s product

Higher wages raise the firm’s cost of production, which shifts the short-run cost curves upward.

7) A profit-maximizing price searcher will expand output to the point where

  1. Total revenue equals total cost
  2. Marginal revenue equals marginal cost
  3. Price level average total cost
  4. Price equals marginal cost

Price Searcher ले उत्पादन त्यही बिन्दुसम्म विस्तार गर्छ जहाँ MR = MC हुन्छ। त्यसै बिन्दुमा नाफा अधिकतम हुन्छ।

8) Ceteris Paribus, compared to a similar job offering no fringe benefits, a job with generous benefits will likely pay.

  1. A lower wage rate
  2. A higher wage rate
  3. The same wage rate
  4. Twice the wage rate of the job, with no fringe benefits

Ceteris Paribus भनेको “अन्य सबै कुरा समान मान्दा” हो। यदि एउटै किसिमको काममा एउटा जागिरले generous fringe benefits (जस्तै: स्वास्थ्य बीमा, पेन्सन, भत्ता आदि) दिन्छ भने, कामदार ती सुविधाको कारण कम नगद तलब पनि स्वीकार गर्न तयार हुन्छन्।

9) The Engel curve for a Giffen good is 

  1. Downward sloping
  2. Upward sloping
  3. A Straight line
  4. U Shaped

10) When price elasticity of demand equals unity, then

  1. MR = 0
  2. MR > 0
  3. MR <0
  4. MR =1

11) Under increasing cost conditions, the product transformation curve is

  1. Straight line
  2. Concave curve
  3. Convex curve
  4. Both 1 and 3

12) Cost in the short run consists of

  1. Fixed cost only
  2. Variable cost only
  3. Both fixed and variable costs
  4. None of the above

13) After the specific tax, the firm’s supply 

  1. Will shift up
  2. Will shift down
  3. Will rotate clockwise
  4. Will rotate anti-clockwise

14) According to Cournot, each duopolist produces

  1. For one-third of the market
  2. For two-thirds of the market
  3. For the whole market
  4. For one-half of the market

15) Utility is always related to

  1. Usefullness
  2. Profit
  3. Want satisfying power
  4. Maximum returns

16) The cross elasticity of demand between two perfect substitutes will be

  1. Very high
  2. Zero
  3. Very low
  4. Infinite

17) Consumers sovereingty is primarily found under

  1. Capitalism
  2. Mixed economy
  3. Socialism
  4. All of the above

18) The fixed costs of a firm

  1. Are fixed only in the short period
  2. When expressed as an average, do not change with output
  3. Do not reflect diminishing marginal returns

19) In a very short period, the supply curve of the industry is

  1. Perfectly elastic
  2. More elastic
  3. Perfectly inelastic
  4. Less elastic

20) Which form of monopoly regulation is most advantageous for the consumer?

  1. Price control
  2. Lump-sum tax
  3. Per unit tax
  4. All of the above

21) When entry into the industry is open (the usual case), and the industry is in long-run equilibrium, the monopolistically competitive firm will produce at the lowest point on its LAC curve.

  1. Always
  2. Never
  3. Sometimes
  4. Cannot say

22) The economic rent earned by any factor will be highest if its elasticity of supply is

  1. Zero
  2. Between zero and one
  3. Equal to one
  4. Infinite

23) The Compensation principle or New Welfare Economics was suggested by

  1. Kaldor
  2. Hicks
  3. Scitovsky
  4. All of the above

24) The profit motive is important under

  1. Public finance
  2. Private finance
  3. Both public and private finance
  4. Public finance of capitalist societies

25)  Which of the following is Adam Smith’s canon of taxation?

  1. Canon of Elasticity
  2. Canon of Diversity
  3. Canon of Simplicity
  4. None of the above

26) Which of the following taxes involves shifting?

  1. Direct Tax
  2. Indirect Tax
  3. Progressive Tax
  4. None of the above

The process of moving the tax burden from the person who pays the government to someone else is called tax shifting.

27) Fiscal policy is also known as

  1. Monetary policy
  2. Budgetary policy
  3. Both 1 and 2
  4. None of the above

28) According to Mahatma Gandhi, for the attainment of an end, the means have to be

  1. Unlimited
  2. Limited
  3. Pure and Sacred
  4. None of the above

29) Per capita income rises when

  1. GNP and population increase at the same rate
  2. GNP increases faster than the population
  3. GNP and population decrease at the same rate
  4. GNP increases slower then population

30) The aggregate demand price refers to

  1. Demand
  2. Effective demand
  3. Ineffective demand
  4. Prospective demand

Effective demand means — demand supported by the ability and willingness to pay

Topic – Banking & Finance

31) If a firm with 5000 shares of common stock with Rs. 10 par value per share announces a 2-for-1 stock split, its outstanding shares of common stock and par value per share will be

  1. 10000 and Rs. 5
  2. 5000 and Rs. 5
  3. 5000 and Rs. 10
  4. 10000 and Rs. 10

32) If a cheque received by a firm is not deposited for several days, this represents an increase in the ….float for the depositing firm.

  1. Collection
  2. Disbursement
  3. Clearing
  4. Net

33) In a stream of cash flow, if the cash flow in each period differs from period to period, it is called

  1. Perpetuity
  2. Payment
  3. Uneven cash flow streams
  4. Amortization schedule

34) The merging of two corporations creates additional value, which is calledthe  value of 

  1. Energy
  2. Economy
  3. Financial
  4. Synergy

This additional value from merging is called synergy.

35) From the beneficiary’s perspective, which LC is safer?

  1. Revocable
  2. Irrevocable
  3. Both
  4. Depends upon the goods to be exported

36) The rate at which the authorized dealer buys and sells the currency notes to its customers is called the.

  1. Currency rate
  2. TT rate
  3. Cross rate
  4. Interbank rate

37) In a common-size income statement, all accounts are expressed as a percentage of

  1. Net income
  2. Sales
  3. EBIT
  4. Cost of goods sold

38) Blue Star is expected to pay an annual dividend of Rs. 12 next year. Dividends have been growing at a compound annual rate of 8% and are expected to continue growing at that rate. What is the value of a share of the stock of Blue Star to an investor who requires a 14% rate of return?

  1. Rs. 200
  2. Rs. 180
  3. Rs. 246
  4. None of the above

39) If a firm places 24 orders in a year with Rs. 300 costs per order placed, what is the total cost associated to thr ordering in inventory?

  1. Rs. 234
  2. Rs. 5600
  3. Rs.7200
  4. Rs.550

40) It is an instrument drawn by one branch of a bank upon another branch of the same bank, instructing the latter to pay a certain sum of money to the person named there in or to his order.

  1. Manager’s cheque
  2. Pay order
  3. Demand draft
  4. All of these

41) The common financial terms for stock and ordinary shares of a company, especially those of a publicly owned company

  1. Equity
  2. Shares
  3. Paid-up capital
  4. Preference share

42) An agent who buys and sells securities on a stock exchange on behalf of a client and receives remuneration in the form of commission.

  1. Broker
  2. Vendor
  3. Dealer
  4. Middleman

43) Property of goods used as security against a loan and forfeited to the lender if the borrower defaults.

  1. Security interest
  2. Collateral
  3. Guarrantee
  4. Undertaking

44) A legan contract in which a promise to pay a specified amount to another party is made should a particular event, such as death or loss of the property happens. It is a means of securing unforeseen losses known by

  1. Indemnity
  2. Insurance policy
  3. Coverage
  4. Security

45) DOW Jones is the stock exchange of 

  1. USA (a price-weighted measure of 30 U.S. blue-chip companies)
  2. UK
  3. Denmark
  4. Germany

46) In relation to paying long-term loans, the sum of the interest payment and the sinking fund payment is called.

  1. Book value
  2. Periodic expense
  3. Cost of debt
  4. Both 2 and 3

47) A partner who is not actively involved in the partnership firm is called

  1. Active partner
  2. Passive partner
  3. Dormant partner
  4. Nominal partner

A dormant partner (also called a sleeping partner) invests capital in the firm but does not take part in day-to-day management.

48) According to the NRB directive, banks and financial institutions should keep accounts on

  1. IAS standard
  2. NAS standard
  3. Current yield of the bond
  4. All of the above

49) The terms Bull and Bear are related to

  1. Gold exchange
  2. Commodity exchange
  3. Beverage exchange
  4. Share market

50) Which credit rating agency decreased America’s credit standard to AA from AAA?

  1. BCBL
  2. Standard and Poor’s
  3. Moderate
  4. None of the above

51) The Secured Transaction Act of Nepal was enacted in

  1. 2004 AD
  2. 2006 AD
  3. 2003 AD
  4. 2009 AD

52) Goods lasting more than a year are called

  1. Durable goods
  2. Non-durable goods
  3. Expandable goods
  4. Non-expandable goods

53) If a market is bullish or if the investors’ sentiment is optimistic about a particular stock earnings per common share are 

  1. High
  2. Low
  3. Medium
  4. Remains constant

54) Short-term bank loan, creditors’ proposed dividend, and provision for taxation are included in

  1. Current assets
  2. Long-term assets
  3. Fixed assets
  4. Current liabilities

Short-term bank loan → a current liability.
Creditors proposed dividend → dividends proposed but not yet paid → a current liability.
Provision for taxation → tax payable within a year → a current liability.

55) The statutory liquidity ratio of the “B” class development bank is

  1. 10%
  2. 5%
  3. 9%
  4. 12%

56) The chairman of the NRB board is

  1. Lawyer
  2. Finance minister
  3. Prime minister
  4. Governor of NRB

57) IF the CD ratio of a FIS is 80% with Rs.50 billion loan. What will be the deposit portfolio?

  1. 70 Billion
  2. 62.50 Billion
  3. 50 Billion
  4. 41.66 Billion

58) All of the following are included in the financial system except

  1. Central bank
  2. Financial market
  3. Credit cards
  4. Money

59) The first paper not issuing country in the world is

  1. China
  2. USA
  3. France
  4. Canada

60) Who formulates monetary policy in Nepal?

  1. Ministry of Finance
  2. Nepal Rastra Bank
  3. National Planning Commission
  4. Ministry of Commerce

Topic – GK and ICT

61) The longest river in Asia is

  1. Mahaveli of Sri Lanka
  2. Ganga of India
  3. Yangtze of China
  4. Huang-ho of China

62) Which one is the largest and deepest ocean in the world?

  1. Indian Ocean
  2. Pacific Ocean
  3. Atlantic Ocean
  4. Arctic Ocean

63) Which of the following is the hottest desert in the world?

  1. Arctic
  2. Sahara
  3. Gobi
  4. Thar

64) How many national parks are there in Nepal?

  1. 9
  2. 10
  3. 11
  4. 12

Nepal has 12 national parks, but recently added a 13th, Chhayanath National Park, in 2025.

65) What is the height of Mt. Kanchenjunga?

  1. 8545 M
  2. 8323 M
  3. 8586 M
  4. 8567 M

66) Which party led the Russian Revolution of 1917?

  1. Socialist
  2. Narodnik
  3. Bolshevik
  4. None of the above

67) Which Pharaoh of Egypt is credited with the construction of the Great Pyramid of Giza?

  1. Unas
  2. Khufu
  3. Khafre
  4. Sahure

68) Who is the first king of the Malla Dynasty?

  1. Ari Dev
  2. Ratna Malla
  3. Rana Malla
  4. Ray Malla

69) How many times does a Muslim pray a day?

  1. 3 Times
  2. 4 Times
  3. 5 Times
  4. 6 Times

70) How many nations are allotted from Asia in the Economic and Social Council of the United Nations?

  1. 10
  2. 11
  3. 12
  4. 13

71) How many MPs of the National Assembly are nominated by the presidency?

  1. 2
  2. 3
  3. 4
  4. 5

  • 56 members are elected, and

3 members are nominated by the President of Nepal on the recommendation of the Council of Ministers.

72) Infrared waves are used for

  1. Outdoor LANs
  2. Indoor LANs
  3. Wireless LANs
  4. Satellite

73) BIOS is used by

  1. Operating System (OS)
  2. Compiler
  3. Interpreter
  4. Application software

74) In Excel, which of the following functions allows storing intermediate calculations, values, or defining names inside a formula?

  1. XLOOKUP
  2. LET Function
  3. ENCODERURL function
  4. REGISTER.ID function

75) A protocol used for fetching email from a mailbox is

  1. POP1
  2. POP2
  3. POP3
  4. POP4

76) Free of cost repair of a software bug available at internet is called.

  1. Version
  2. Ad-on
  3. Tutorial
  4. Patch

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