NRB Assistant Director Pretest Set 2 – Officer Third

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Topic – Economy, Trade & Industry

1) Which of the following institutions introduced the human poverty index (HPI)?

  1. The IMF
  2. UNDP
  3. ADB.
  4. World Bank

2) Nepal has recieved largest amount of aid from

  1. Japan
  2. China
  3. India
  4. USA

3) VAT Rate in Nepal is

  1. 12%
  2. 13%
  3. 15%
  4. 17%

4) Nepal’s main export to overseas countries is

  1. Jeweler
  2. Carpet
  3. Metal
  4. Food

5) Reasoning that applies general observation to individual cases is called

  1. Inductive reasoning
  2. Logical reasoning
  3. Deductive reasoning
  4. Persuasive reasoning
  • Deductive reasoning: applies a general premise or rule to a specific case to guarantee a conclusion.
  • Logical Reasoning: A broader term for structured thinking, including inductive, deductive, and abductive reasoning.
  • Inductive Reasoning (Bottom-up): Draws probable, general conclusions from specific observations or examples.
  • Persuasive Reasoning: Uses logical arguments (often inductive, such as using examples, or deductive) to influence an audience.

6) How many industrial estates are there in Nepal?

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

6) Pubic enterprises in Nepal have been classified into

  1. 5
  2. 6
  3. 7
  4. 8

7) A competitive capital market is important to society because resources

  1. Can be completed quickly
  2. Have an outcome that is known with certainty
  3. Create wealth
  4. Reduce the value of the resources employed

8) Compared to investing in physical capital, human capital investments are more likely to be influenced by 

  1. Non-monetary considerations
  2. The rate of return
  3. Depreciation rates
  4. Opportunity costs

9) If the interest rate were 4%, the net present value of Rs.100 to be received one year from now would be

  1. Rs. 96
  2. Rs.  96.15
  3. Rs.  98.04
  4. Rs.  102

Present Value = FV/(1+r)t 

10) Which of the following is a powerful weapon that has served to increase the bargaining power of the labor unions?

  1. Right-to-work laws
  2. The strike
  3. The lockout
  4. All of the above

11) Which of the following is not a barrier to entry?

  1. Patents
  2. Government restrictions
  3. Losses in the industry
  4. High entry cost
  • Patents – barrier 
  • Government strictions – barrier 
  • Losses in the industry – घाटा हुदैमा व्यापार सुरु नगर्ने भन्ने हुदैन 
  • High entry cost – barrier

12) To internalize an external cost, a tax must cause the marginal private cost

  1. Shift down
  2. Be Zero
  3. Equal to marginal social cost
  4. Become flat

13) For the people who are sitting on a beach, the sunrise over the water is 

  1. A moral hazard
  2. A non-rival good
  3. An external benefit
  4. An external cost

A sunrise is a non-rival good because enjoying the view by one person does not diminish others’ ability to enjoy it at the same time. Its consumption by one person does not reduce its consumption by others. 

A moral hazard: This applies to situations where an individual takes on more risk because someone else bears the costs (e.g., driving recklessly after getting insurance). 

An external benefit: While the sunrise provides a benefit to people not involved in any market transaction (as there is no market for sunrises)

An external cost: This is a negative impact on a third party not involved in a transaction

14) Arrow’s impossibility theorem states that it is impossible for

  1. A government to do the optimal thing
  2. A system that combines everyone’s preferences to make consistent choices.
  3. The majority rule ever represents the wishes of the society
  4. None

Arrow’s Impossibility Theorem, also known as Arrow’s Paradox “पूर्ण रूपमा न्यायोचित र तर्कसंगत सामाजिक छनोट प्रणाली बनाउनु असम्भव छ।”

15) Under perfect competition, the demand curve for an individual firm is

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

16) An unplanned economy is characterized by

  1. Unbalanced economic growth
  2. Economic development under control
  3. Balanced economic growth
  4. Balanced and equitable exploitation of the resources

17) A planned economy is characterized by

  1. Absence of control
  2. Unbalance growth
  3. Unequal distribution of wealth
  4. None of the above

18) When income increases, consumption expenditure also increases by

  1. Smaller amount
  2. Same amount
  3. Large amount
  4. None of the above

According to Keynes’s fundamental psychological law of consumption, as income increases, consumption expenditure also increases, but not by as much as the increase in income.

19) The fundamental psychological law of consumption is associated with

  1. Marshall
  2. J.M. Keynes
  3. Amarthya Sen
  4. Pigou

20) Which of the following is not an economic resource?

  1. Money
  2. Land
  3. Labor
  4. Enterpreneurship

Money is a medium of exchange and a measure of value, used to facilitate transactions and acquire other resources. It does not directly produce goods or services itself. 

21) A contractionary supply shock most likely results in

  1. Increased aggregate demand (AD)
  2. Decreased employment
  3. Increased potential GDP
  4. A decrease in the price level
A contractionary supply shock is a sudden decrease in the aggregate supply of goods and services, which shifts the short-run aggregate supply (SRAS) curve to the left. This leads to a new equilibrium with a higher price level and a lower level of real output (GDP). As businesses produce less, they need fewer workers, resulting in a decrease in employment (or an increase in unemployment).
22) Which of the following lessens the impact of the money multiplier?
  1. People increase their cash holdings
  2. Banks sell government securities to the central bank
  3. Bank increases loans
  4. Interest rate drops

People increasing their cash holdings reduces the money multiplier. When individuals hold more cash instead of depositing it into banks, banks have fewer reserves available to create new loans, thus shrinking the lending process and diminishing the overall multiplier effect.

23) If the government’s anti-inflationary policy is not viewed as credible, it results in
  1. Self-fulfilling inflation
  2. Disinflation
  3. Deflation
  4. Reflation

24) The inside lag of fiscal policy is  ….. and the inside lag of monetary policy is  ……

  1. Short, Short
  2. Long, Long
  3. Long, Short
  4. Short, Long

Fiscal Policy (Long Inside Lag): Involves a lengthy political process for recognition, debate, and legislative approval to change taxes or spending.

Monetary Policy (Short Inside Lag): Central banks can respond quickly and implement policy changes (such as interest rate adjustments). 

25) Which periodic plan has envisioned promoting Nepal into a developing country by the end of 2022?

  1. Eighth plan
  2. Tenth Plan
  3. Thirteenth plan
  4. Fifteenth plan 

26) If the government budget is in deficit when the economy is at full employment, the deficit is said to be …

  1. Cyclical
  2. Automatic
  3. Persisting
  4. Structure 
Banking and Finance

27) An increase in the working capital is considered

  1. Cash outflow at the beginning
  2. Cash outflow at the average
  3. Cash inflow at the end
  4. Both 1 and 2

28. Which of the following is not considered to be a carrying cost? 

  1. Storage cost
  2. Restocking costs
  3. Insurance and taxes on the inventory
  4. All of the above

Carrying Cost (holding cost) is the total expense of storing and maintaining unsold inventory over time, including warehousing, insurance, taxes, depreciation, and the opportunity cost of capital tied up in stock. 

Restocking costs –  ordering or procurement costs, are associated with the process of placing and receiving an order for inventory

All of the other options are carrying cost (holding cost)

29. Pooling is the combination of assets or liabilities that …

  1. Reduce the risk
  2. Deteriorates the liquidity
  3. Increase the risk
  4. Increase the number of transactions

30. Netting reduces 

  1. The no of transactions
  2. Cost of settlement
  3. Both 1 and 2
  4. None of these

Netting – आपसमा हुने payable र receivable) रकमहरू एक-आपसमा मिलाएर अन्तिम बाँकी रकम मात्र निकाल्ने प्रक्रिया हो।

31. If there is an inflationary trend in the economy, the yield curve would be 

  1. Upward sloping
  2. Downward sloping
  3. Vertical
  4. Horizontal

32. Mutual funds are regulated by

  1. Nepal Rastra Bank
  2. Securities Board of Nepal
  3. Ministry of Finance
  4. Government of Nepal

33. If a cheque is not presented within 6 months from its issuance date, it is called …

  1. Stale cheque
  2. Invalid cheque
  3. Crossed cheque
  4. None of the above

34. ………….. is the amount which the shareholders are required to pay.

  1. Paid-up capital
  2. Called up the capital
  3. Subscribed capital
  4. Authorized capital
  • Called-up Capital: The amount requested from shareholders.
  • Paid-up Capital: The actual money received by the company.
  • Subscribed Capital: The portion investors agreed to buy.
  • Authorized Capital: The maximum share capital a company can issue. 

35. Anything of value or benefit in exchange for a contractual are required to pay

  1. Return on equity
  2. Assets
  3. Condideration
  4. None of the above

Consideration is defined as “something of value” or a “bargained-for exchange” between parties.

36. FISE related to

  1. USA
  2. France
  3. UK
  4. Australia

37. The asset whose return is mostly affected by inflation is

  1. Common stock
  2. Bond
  3. Real Estate
  4. Share Market

38. The market where non-listed securities can be traded is

  1. OTC (Over the counter)
  2. Stock market
  3. Third market
  4. Exchange rate

39. Based on ownership, a company cannot be divided into

  1. Private company
  2. Public company
  3. Statutory company
  4. Government company

40. The paper gold facility (Special Drawing Rights or SDRs) is provided by

  1. World Bank
  2. ADB
  3. IMF
  4. IDA

41. Commercial papers are issued by

  1. Corporations
  2. Central government
  3. State government
  4. Municipal corporation

42. Which of the following is not a money market instrument?

  1. Treasury bill
  2. Banker’s acceptance
  3. Repurchase agreement
  4. Treasury bond 

43. What type of collateral is needed to issue a bank note?

  1. 50% gold and 20% coin
  2. 50% gold and 40% coin
  3. 50% gold and 50% coin
  4. 30% gold and remain coin and other

44. Which chapter of BAFIA 2073 defines the provision of classification of BFIs’ function and prohibited functions?

  1. Chapter 2
  2. Chapter 3
  3. Chapter 5
  4. Chapter 7

45. Which of the following is not a demand deposit?

  1. Current deposit
  2. Saving deposit
  3. Fixed deposit
  4. Both 1 and 3

46. Which of the following is not a tool of financial forecasting?

  1. Cash budget
  2. Capital budget
  3. Pro-forma balance sheet
  4. Pro-forma income statement

47. Who was the first governor to sign the Rs. 1000 note?

  1. Himalaya Shamsher JBR
  2. Yadav Prasad Pant
  3. Kalyan Bikram Adhikari
  4. Kulewor Sharma

48. What does BOOT in industrial policy mean?

  1. Build, Own, Operate, Transfer
  2. Budgetm Organization, Ownership, Transfer
  3. Build, Operation, Ownership, Transfer
  4. Build, Organization, Ownership, Transfer

49. The terms TRIPS and TRIMPS are related to

  1. SAFTA
  2. AFTA
  3. GATT
  4. NAFTA

50. Corporate security is exposed to… as compared against treasury securities.

  1. Maturity risk
  2. Inflation risk
  3. Default risk
  4. Political risk

51. Which is the last step of the final account? 

  1. Profit and Loss Account
  2. Trading account
  3. Balance sheet
  4. Trail balance

Journal → Ledger → Trial Balance → Trading Account → P/L Account → Balance Sheet

52. The Indian Rupee is legal tender in two other countries. One is Nepal, and the other is 

  • Pakistan
  • Bhutan
  • Afganistan
  • Bangladesj

53. When was international monetary fund established?

  1. 1944 AD
  2. 1943 AD
  3. 1945 AD
  4. 1948 AD

54. The sacred pilgrimage site and tourist area Devghat is located at the confluence of which rivers?

  1. Kaligandaki and Gosaikunada
  2. Kaligandaki and Seti
  3. Kaligandaki and Trishuli
  4. Trishuli and Marshyangdi

55. Who is known as the Columbus of Space?

  1. Yuri Gagarin
  2. Neil Armstrong
  3. Buzz Aldrin
  4. Eugage Cernan

56. Star and Ring topology are examples of

  1. Wireless LAN
  2. Modem
  3. Multiplexer
  4. Network Topologies

57. Which one is not a function category in Excel?

  1. Logical
  2. Data Series
  3. Financial
  4. Text

58. Data division is the third division of a …….. program.

  1. .COBOL
  2. BASIC
  3. PASCAL
  4. FORTH

59. Which of the following are valid minimum and maximum zoom size in MS Word?

  1. 50% – 250%
  2. 50% – 500%
  3. 150% – 250%
  4. 10% – 500%

60. The information that gets transformed in encryption is ……

  1. Plain Text
  2. Cypher Text
  3. Parallel Text
  4. Encrypted Text

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