Banking Exam Questions – Set 1
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Banking Exam Questions – Set 1 - sample questions with answers
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1. What is obtained when depreciation is deducted from Gross National Product (GNP)?
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Answer: NNP
Net National Product (NNP) is calculated by subtracting depreciation from Gross National Product (GNP).
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2. Who appoints the Deputy Governor of Nepal Rastra Bank?
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Answer: Government of Nepal (Council of Ministers)
According to the NRB Act 2058, the Government of Nepal (Council of Ministers) appoints Deputy Governors upon the recommendation of the Governor.
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3. What is the term for money that moves quickly between countries to earn higher interest rates?
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Answer: Hot Money
Hot Money refers to currency that is moved quickly to earn higher interest rates.
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4. Which was the first rural development bank established in Nepal?
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Answer: Purbanchal Rural Development Bank
Purbanchal Rural Development Bank was the first rural development bank established in Nepal in 2049 BS to target rural microfinance.
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5. Which bank was the first to introduce ATM card services in Nepal?
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Answer: Everest Bank
Everest Bank was the first bank to introduce ATM cards in Nepal.
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6. What percentage of margin is maintained by Rastriya Banijya Bank when investing in gold and silver loans?
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Answer: 30%
Rastriya Banijya Bank maintains a 30% margin when investing in gold and silver loans.
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7. On which date did the Nepal Rastra Bank Act, 2058 receive royal assent?
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Answer: Magh 17, 2058 BS
The Nepal Rastra Bank Act, 2058 received royal assent on Magh 17, 2058 BS.
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8. Which central financial institution was established in Nepal on 14 Baisakh 2013 BS?
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Answer: Nepal Rastra Bank
Nepal Rastra Bank was established as the central bank of Nepal on 14 Baisakh 2013 BS.
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9. Under which legislation was Nepal Rastra Bank established?
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Answer: Nepal Rastra Bank Act, 2012
Nepal Rastra Bank was established in 2013 BS under the Nepal Rastra Bank Act, 2012.
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10. Who makes the decision regarding hidden designs, internal security features, and printing materials when issuing banknotes in Nepal?
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Answer: Board of Directors of Nepal Rastra Bank
According to the Nepal Rastra Bank Act, decisions regarding hidden designs, internal security features, and materials used for printing banknotes are made by the Board of Directors of Nepal Rastra Bank.
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11. During the tenure of which Governor did Nepal start using 'Rupees' instead of 'Mohru' on paper currency?
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Answer: Himalaya Shumsher JB Rana
The term 'Rupees' replaced 'Mohru' on banknotes during the tenure of Nepal Rastra Bank's first Governor, Himalaya Shumsher JB Rana.
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12. Whose recommendation must the Government of Nepal seek before declaring any denomination of banknote non-tender except in specified areas?
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Answer: Board of Directors of Nepal Rastra Bank
Under the Nepal Rastra Bank Act, the Government of Nepal must seek the advice of the Board of Directors of Nepal Rastra Bank before declaring any denomination of currency note non-circulating outside specified areas.
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13. Which institution acts as the 'Lender of the Last Resort' for commercial banks and financial institutions facing severe liquidity distress in Nepal?
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Answer: Nepal Rastra Bank
Nepal Rastra Bank acts as the lender of last resort for commercial banks and financial institutions in Nepal.
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14. What percentage of board members must be present to form the quorum for a meeting of the Board of Directors of Nepal Rastra Bank?
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Answer: At least 51 percent
As per the legal provision, at least 51 percent of directors must be present to constitute a quorum for a meeting of the NRB Board of Directors.
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15. How many members must be in the Audit Committee headed by a non-executive director in a bank or financial institution?
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Answer: 3 members
According to the Bank and Financial Institutions Act, a 3-member Audit Committee must be formed under the coordination of a non-executive director.
This chapter has 49 questions. Practise them all with timing, answers and explanations.