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NRB Assistant Director Pretest Set 6 – MCQ Solved

Topic – Economics, Trade and Industry

1) Which of the following will shift the demand curve to the right?

  1. Increase in price
  2. Increase in income (for normal goods)
  3. Decrease in consumer preference
  4. Higher interest rates

2) The balance of payment (BoP) incomes

  1. Only export and import data
  2. Only the capital account
  3. Current account and capital account
  4. Trade deficit only

3) If the central bank increases the policy rate, the likely outcome is

  1. Increase the money supply
  2. Decrease in savings
  3. Decrease in borrowing
  4. Increase in inflation
  • Increase the money supply → policy rate बढ्दा पैसा महँगो हुन्छ, supply घट्ने tendency हुन्छ
  • Decrease in savings → ब्याजदर बढ्दा savings प्रायः बढ्छ
  • Decrease in borrowing → ऋण महँगो हुन्छ, borrowing घट्छ
  • Increase in inflation  → उल्टो, inflation control गर्न rate बढाइन्छ

4) Gross National Product (GNP) differs from GDP by including

  1. Imports
  2. Net income from abroad
  3. Invsetment
  4. Consumption

5) Which one is an example of a direct tax?

  1. Value-added Tax
  2. Income Tax
  3. Excise duty
  4. Custom Duty

6) Which terms describe a situation where one producer controls the entire market?

  1. Oligopoly
  2. Monopoly
  3. Duopoly
  4. Competitive firm

7) The “Invisible Hand” concept was introduced by

  1. Adam Smith’s “Invisible Hand” in his 1776 masterpiece, The Wealth of Nations.
  2. JM Keynes
  3. Karl Marx
  4. Davic Ricardo

व्यक्तिहरूले आफ्नै स्वार्थका लागि काम गर्दा पनि बजारका शक्तिहरू (माग–आपूर्ति) मार्फत सरकारको हस्तक्षेप बिना नै आर्थिक गतिविधि स्वतः सन्तुलित भई समाजको हित हुन्छ भन्ने अवधारणा हो।

8) The balance of payment records

  1. Domestic transactions
  2. All economic transactions between residents and non-residents
  3. Only export and import
  4. Government budget

9) A current account surplus indicates

  1. Exports exceed imports
  2. Import exceeds
  3. Balanced Trade
  4. None of the above

10) Which of the following is included in the capital account?

  1. FDI
  2. Exports of goods (current account)
  3. Import of services (current account)
  4. Remittance (current account, transfer income)

11) BoP disequilibrium is corrected by 

  1. Increasing imports
  2. Devaluation of currency
  3. Reducing exports
  4. None of the above

12) Which of the following affects BoP?

  1. Domestic consumption
  2. Exchange rates मुद्रा सस्तो/महँगो हुँदा exports र imports प्रभावित हुन्छ → BoP मा असर
  3. Internal migration
  4. None of the above

13) Foreign aid can negatively impact local industries by

  1. Providing training
  2. Creating dependency and crowding out local investment
  3. Increase exports
  4. Promoting competition

14) Which type of foreign air focuses on providing knowledge and skills?

  1. Project aid
  2. Technical assistance
  3. Grant aid
  4. Emergency aid

15) Which body audits the accounts of Nepal Rastra Bank?

  1. NRB itself
  2. Office of the Prime Minister
  3. Office of the Auditor General
  4. Ministry of Finance

16) Who has the authority to formulate and implement monetary policy in Nepal?

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

17) Which of the following tools is used by NRB to control inflation?

  1. Government spending
  2. Tax Incentives
  3. Interest Rate Policy
  4. Foreign Aid

18) What is “Lender of Last Resort”?

  1. Lends to international banks
  2. Lends to banks in financial trouble
  3. Provides emergency funds to individuals
  4. Finances government projects

19) Interest Rate Parity holds when

  1. Exchange rates are fixed
  2. No arbitrage condition exists between countries
  3. Unflation is stable
  4. Currency reserves are high

20) If the interest rate is compounded annually, the future value of the formula is

  1. FV = P(1+rt)
  2. FV = P(1 +r/n) n
  3. FV = Pen
  4. FV = P/(1+rt)

21) Duration of the bond is

  1. The time to maturity
  2. A measure of interest rate sensitivity
  3. Time to first coupon
  4. Risk-free return

22) What does the Taylor Rule relate to?

  1. Unemployment and inflation
  2. Interest rate sensitivity
  3. Bond pricing
  4. Currency exchange

23) Which of the following typically causes the interest rate to fall?

  1. High inflation
  2. Recession
  3. Tight monetary policy
  4. Government deficit spending

24) The interest rate that equilizes the NPV of cash flows with the initial investment is

  1. Average return
  2. Internal Rate of Return
  3. Effective Rate
  4. Cost of Capital

25) When central banks adopt an accommodative monetary policy, the likely impact is

  1. Lower interest rate
  2. Reducedthe  money supply
  3. Higher taxation
  4. Increases in required reserve

Accommodative monetary policy भनेको economic growth बढाउन र borrowing सजिलो बनाउन central bank ले अपनाउने नीति हो !

26) What does a low asset turnover ratio imply?

  1. Efficient use of assets
  2. High gearing
  3. Poor asset utilization
  4. Strong liquidity

27) What is the idea of the current ratio?

  1. 1:1
  2. 1:2
  3. 2:1
  4. 3:1

28) Which ratio best reflects the efficiency in managing receivables?

  1. Debt service coverage
  2. Debtor turnover ratio
  3. Interest coverage
  4. Return on equity

The Debtor turnover ratio (also known as the Accounts Receivable turnover ratio) is an efficiency metric that measures how effectively a company manages and collects payments from its credit customers.

29) Which ratio is used for assessing solvency?

  1. ROE
  2. Debt to Total Assets
  3. Current ratio
  4. Operating margin

30) What is the maximum maturity period of commercial paper?

  1. 6 Months
  2. 10 Months
  3. 270 Days
  4. 1 Year

31) Which market is more liquid?

  1. Capital market
  2. Commodity market
  3. Foreign exchange market
  4. Money market

32) The process of listing securities on the stock exchange is called.

  1. Issuence
  2. Trading
  3. Dematerialization
  4. Listing

33) The term “Bull Market” refers to

  1. A market with declining prices
  2. A stagnant market
  3. A market with rising prices
  4. A market with no trading

34) Which instrument is considered a money market instrument used for very short-term borrowing?

  1. Bonds
  2. Equity shares
  3. Repurchase agreement (Repo)
  4. Denentures

Topic – General Knowledge and ICT

1) Who discovered Lumbini, the birthplace of the Buddha?

  1. Seng-Tsai
  2. Ashoka the Great
  3. Anton Fuhrer
  4. Faxian

2) What is the total area of Rara National Park?

  1. 106 Sq. KM (Largest Lake of Nepal)
  2. 3555 Sq. KM
  3. 1500 Sq. KM
  4. 159 Sq. KM

Nepal’s smallest protected area of Nepal

3) Which district is similar to the shape of India?

  1. Dolakha
  2. Gorkha
  3. Nawalparasi
  4. Sankhuwasabha

4) The constitution of Nepal (2072) has made provision for the no-confidence motion for how long after the appointment of the Prime Minister?

  1. 1 Year
  2. 2 Years
  3. 2.5 Years
  4. 3 Years

नेपालको संविधान २०७२ (धारा १००) अनुसार, प्रधानमन्त्री नियुक्त भएको मितिले २ वर्ष पूरा नभएसम्म प्रधानमन्त्रीविरुद्ध अविश्वासको प्रस्ताव पेश गर्न पाइँदैन।

5) Which is the least populated district of Nepal?

  1. Mugu
  2. Mustang
  3. Manang
  4. Dopla

6) Which mountain is the standard time of Nepal based on?

  1. Mt. Everest
  2. Kanchenjunga
  3. Gaurishankar
  4. Langtang

7) Which was the first country in the world to introduce the Audit Act in 1807?

  1. United Kingdom
  2. France
  3. China
  4. Greece

8) What is the maximum length of the filename in DOS?

  1. 4
  2. 5
  3. 8
  4. 12

9) Banker’s algorithm is used to

  1. Prevent deadlock
  2. Deadlock recovery
  3. Solve the deadlock
  4. All of these

10) A service that allows a user to log in into computer somewhere on the internet is

  1. Telnet
  2. FTP
  3. Email
  4. Use Net

11) What does FTP stand for?

  1. Folder Text Protocol
  2. File Transfer Push
  3. Fixed Terminology Placement
  4. File Transfer Protocol

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