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Banking Loksewa Questions – Set 2

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Banking Loksewa Questions – Set 2 - sample questions with answers

  1. 1. Which entity holds the monopoly power to issue bank notes and coins in Nepal?

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    Answer: Nepal Rastra Bank

    According to Section 52 of the Nepal Rastra Bank Act, 2058, Nepal Rastra Bank has the sole right to issue currency notes and coins in Nepal.

  2. 2. In which year was the 'Bank of the United States' established in the United States?

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    Answer: 1791 AD

    The First Bank of the United States was chartered by the United States Congress in 1791 under the initiative of Alexander Hamilton.

  3. 3. Among the 77 districts of Nepal, which district has the highest number of commercial bank branches?

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    Answer: Kathmandu

    Kathmandu is the district with the highest number of commercial bank branches in Nepal.

  4. 4. On which date was the first amendment made to the Banking Offenses and Punishment Act, 2064?

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    Answer: October 4, 2016 (2073 Ashwin 18 BS)

    The first amendment to the Banking Offenses and Punishment Act, 2064 was authenticated on Ashwin 18, 2073 BS.

  5. 5. The 'Bank Rate', employed by a central bank to regulate interest rates and money supply, is a primary tool of which policy?

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    Answer: Monetary Policy

    The bank rate is a quantitative instrument used by the central bank under its monetary policy to manage liquidity and interest rates.

  6. 6. From which country is the Current Account believed to have originated in banking history?

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    Answer: England

    In banking history, the current account system was first introduced in England.

  7. 7. In which section of the Nepal Rastra Bank Act, 2058 are the objectives of the central bank stipulated?

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    Answer: Section 4

    Section 4 of the Nepal Rastra Bank Act, 2058 clearly outlines the objectives of the bank.

  8. 8. According to the Banks and Financial Institutions Act, 2073, how many members are there in the Audit Committee formed by the Board of Directors?

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    Answer: 3 members

    Under the Banks and Financial Institutions Act, the board of directors forms a 3-member audit committee headed by a non-executive director.

  9. 9. While gaining WTO accession, Nepal committed to allowing foreign banks to open branches after which year?

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    Answer: 2010 AD

    Upon joining the WTO, Nepal committed to permitting foreign commercial banks to establish branches for wholesale banking after 2010.

  10. 10. Who was the King of Nepal that first issued coins with a hole in the center?

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    Answer: Prithvi Bir Bikram Shah

    Coins with a hole in the center were issued in Nepal during the reign of King Prithvi Bir Bikram Shah.

  11. 11. From which authority are banks and financial institutions legally required to obtain a license to conduct banking business in Nepal?

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    Answer: Nepal Rastra Bank

    According to the Bank and Financial Institutions Act, institutions must obtain a license from Nepal Rastra Bank to carry out banking transactions.

  12. 12. According to the Nepal Rastra Bank Act, 2058, who guarantees the Nepalese currency?

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    Answer: Government of Nepal

    Under the Nepal Rastra Bank Act, currency notes and coins issued by the central bank are guaranteed by the Government of Nepal.

  13. 13. According to the Banks and Financial Institutions Act, 2073, who holds the primary responsibility for formulating policies and determining the overall organizational structure of an institution?

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    Answer: Board of Directors

    The Board of Directors is responsible for preparing clear organizational structures, formulating institutional policies, and overseeing their implementation.

  14. 14. Which section of the Foreign Exchange (Regulation) Act, 2019 contains provisions regarding penalties and punishments?

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    Answer: Section 17

    Section 17 of the Foreign Exchange (Regulation) Act, 2019 lays down the provisions concerning penalties and punishments for offenses under the act.

  15. 15. On which date was the Financial Sector Development Strategy approved by the Government of Nepal, Council of Ministers?

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    Answer: January 6, 2017 (2073 Poush 22 BS)

    The Financial Sector Development Strategy was formally approved by the Council of Ministers on Poush 22, 2073 BS.

This chapter has 46 questions. Practise them all with timing, answers and explanations.