Banking Model Questions – Set 1
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Banking Model Questions – Set 1 - sample questions with answers
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1. Under Anti-Money Laundering directives, for wire transfers of what amount or above must financial institutions verify the beneficiary's identity?
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Answer: Rs. 75,000
According to AML guidelines, financial institutions must identify and verify the beneficiary for wire transfers of Rs. 75,000 or more.
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2. Who has the authority to formulate and determine the foreign exchange rate regime for the Nepalese rupee?
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Answer: Nepal Rastra Bank
According to the Nepal Rastra Bank Act, 2058, Nepal Rastra Bank holds the authority to formulate and determine the foreign exchange rate regime.
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3. On which date did Rastriya Banijya Bank Limited and NIDC Development Bank commence joint operations following their merger?
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Answer: May 2, 2018 (2075 Baisakh 19 BS)
Rastriya Banijya Bank and NIDC Development Bank started integrated transactions on May 2, 2018 (2075 Baisakh 19 BS) following their merger.
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4. According to the Nepal Rastra Bank Act, who conducts the audit of Nepal Rastra Bank?
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Answer: Auditor General
As per the Nepal Rastra Bank Act, 2058, the final audit of Nepal Rastra Bank is conducted by the Auditor General.
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5. Who acts as the coordinator of the National Coordination Committee under the Anti-Money Laundering Act?
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Answer: Secretary of the Ministry of Finance
Under the Anti-Money Laundering Act, the Secretary of the Ministry of Finance acts as the coordinator of the National Coordination Committee.
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6. According to the Nepal Rastra Bank Act, 2058, which statement regarding the Bank's accounts is correct? 1. The Bank must maintain its accounts in accordance with Nepal Accounting Standards. 2. The Bank must maintain its accounts only in the format of the International Monetary Fund. 3. The Bank's audit must be conducted exclusively by international audit firms.
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Answer: Only 1 is correct
Section 83 of the Nepal Rastra Bank Act, 2058 requires the Bank to maintain its books of accounts in accordance with Nepal Accounting Standards.
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7. Which section of the Nepal Rastra Bank Act, 2058 provides for the formation of the Board of Directors?
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Answer: Section 14
Section 14 of the Nepal Rastra Bank Act, 2058 provides for the formation of the Board of Directors.
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8. Which entity is responsible for conducting open market operations to manage liquidity in Nepal's financial market?
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Answer: Nepal Rastra Bank
Nepal Rastra Bank conducts open market operations as a monetary policy instrument to manage market liquidity.
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9. Which Malla king introduced the silver coin known as 'Mahendramalli' in Nepal?
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Answer: Mahendra Malla
King Mahendra Malla of Kathmandu introduced silver currency in Nepal, which came to be known as 'Mahendramalli'.
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10. In which country was paper currency first introduced in the world?
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Answer: China
Paper currency was first invented and used in China during the Tang and Song dynasties.
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11. In which location of Kathmandu is the central office of Nepal Rastra Bank situated?
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Answer: Baluwatar
The central office of Nepal Rastra Bank is located in Baluwatar, Kathmandu.
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12. According to Nepal Rastra Bank directives, what is the maximum non-performing loan (NPL) ratio a microfinance financial institution can have to be eligible to open a new branch?
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Answer: 5 percent
To open a new branch, a microfinance institution must meet the minimum paid-up capital and capital fund requirements, and its non-performing loans must not exceed 5 percent.
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13. By what maximum percentage are banks and financial institutions restricted from varying administrative service charges and commitment fees between customers for the same nature of loan?
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Answer: 0.25 percent
According to NRB directives, banks and financial institutions cannot vary administrative service charges and commitment fees by more than 0.25 percent between customers for the same loan category.
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14. To which body is the Insurance Board (now Nepal Insurance Authority) legally required to submit its annual performance report?
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Answer: Government of Nepal, Ministry of Finance
According to the insurance legislation, the Insurance Board must submit its annual performance report to the Government of Nepal, Ministry of Finance.
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15. What was the authorized capital of Nepal Bank Limited when it was established in 1937 AD (1994 BS)?
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Answer: Rs. 1 crore
At the time of its establishment, Nepal Bank Limited had an authorized capital of Rs. 1 crore and an issued capital of Rs. 25 lakh.
This chapter has 50 questions. Practise them all with timing, answers and explanations.