40 Essential MCQs on NRB Monetary Policy 2082/83 & First Quarter Review

Are you preparing for the NRB Officer? Master the latest Monetary Policy 2082/83 and the First Quarter Review with these 40 must-solve MCQs. Boost your score with detailed explanations on interest rate corridors, inflation targets, and new credit limits.

1. What is the economic growth target set by the Government of Nepal for the fiscal year 2082/83, which the monetary policy aims to support?

A) 5.0%

B) 5.5%

C) 6.0%

D) 7.0%

 

2. The Monetary Policy 2082/83 aims to maintain consumer price inflation within what limit?

A) 5.0%

B) 5.5%

C) 6.5%

D) 7.0%

 

3. What is the target for broad money supply (M₂) growth in the FY 2082/83?

A) 10.0%

B) 12.0%

C) 13.0%

D) 15.0%

 

4. What is the target for credit growth to the private sector for the fiscal year 2082/83?

A) 10.5%

B) 12.0%

C) 12.5%

D) 14.0%

 

5. According to the Q1 Review, what was the actual year-on-year consumer inflation in Ashoj 2082?

A) 1.47%

B) 2.72%

C) 4.82%

D) 5.50%

 

6. As per the First Quarter Review of 2082/83, the Policy Rate has been reduced to:

A) 4.50%

B) 4.25%

C) 5.00%

D) 4.75%

 

7. Following the Q1 Review, the Standing Liquidity Facility (SLF) rate (upper limit of IRC) is set at:

A) 6.50%

B) 6.00%

C) 5.75%

D) 5.50%

 

8. The Standing Deposit Facility (SDF) rate, which serves as the lower limit of the Interest Rate Corridor, remains at:

A) 2.50%

B) 2.75%

C) 3.00%

D) 3.25%

 

9. Which rate is used as the "Operating Target" of the monetary policy in Nepal?

A) Bank Rate

B) Weighted Average Interbank Rate

C) Inflation Rate

D) Repo Rate

 

10. In the original 2082/83 policy, the Bank Rate was reduced from 6.5% to:

A) 5.5%

B) 6.0%

C) 6.25%

D) 5.75%

11. The single obligor limit for individual margin-type loans (loan against shares) was increased in the 2082/83 policy to:

A) Rs. 15 Crore

B) Rs. 20 Crore

C) Rs. 25 Crore

D) Rs. 30 Crore

 

12. What is the maximum loan limit for private residential house construction or purchase as per the 2082/83 policy?

A) Rs. 1.5 Crore

B) Rs. 2 Crore

C) Rs. 2.5 Crore

D) Rs. 3 Crore

 

13. For first-time homebuyers, the Loan-to-Value (LTV) ratio for residential housing loans is allowed up to:

A) 60%

B) 70%

C) 80%

D) 90%

 

14. According to the Q1 Review, the limit for individual Personal Overdraft (OD) loans has been increased to:

A) Rs. 50 Lakh

B) Rs. 75 Lakh

C) Rs. 1 Crore

D) Rs. 1.5 Crore

 

15. BFIs can now provide loans up to what amount for agriculture based on a "self-assessment" of the borrower's collateral?

A) Rs. 5 Lakh

B) Rs. 10 Lakh

C) Rs. 15 Lakh

D) Rs. 20 Lakh

 

16. The monetary policy aims to maintain foreign exchange reserves sufficient to cover at least how many months of imports?

A) 6 months

B) 7 months

C) 8 months

D) 9 months

 

17. According to the Q1 Review, Nepal's foreign exchange reserves in Ashoj 2082 were sufficient to cover imports for how many months?

A) 12.5 months

B) 14.7 months

C) 16.4 months

D) 18.2 months

 

18. For foreign travel (other than India), the limit for the passport-based foreign exchange facility for a Nepali citizen has been set at:

A) USD 1,500

B) USD 2,500

C) USD 3,000

D) USD 5,000

 

19. Remittance inflows in the first three months of FY 2082/83 increased by what percentage compared to the previous year?

A) 12.2%

B) 25.9%

C) 35.4%

D) 40.0%

 

 20. Which account recorded a surplus of Rs. 264.03 billion as per the Q1 Review?

A) Current Account

B) Capital Account

C) Balance of Payments (BoP)

D) Trade Balance

 

21. The Q1 Review removed the requirement for banks to keep the interest rate on institutional fixed deposits, how much lower than personal fixed deposits?

A) 0.5%

B) 1.0%

C) 1.5%

D) 2.0%

 

22. What was the overall Non-Performing Loan (NPL) ratio of Banks and Financial Institutions (BFIs) as of Ashoj 2082?

A) 3.98%

B) 4.50%

C) 5.26%

D) 6.03%

 

 

23. The maximum collateral-based loan limit from Microfinance Financial Institutions (MFIs) was increased in the Q1 Review to:

A) Rs. 7 Lakh

B) Rs. 10 Lakh

C) Rs. 12 Lakh

D) Rs. 15 Lakh

 

24. Which highway corridors were specifically mentioned for concessional loans up to Rs. 3 Crore for hotels and restaurants?

A) East-West and North-South

B) Hulaki (Postal) and Madhya-Pahadi (Mid-Hill)

C) Prithvi and Tribhuvan

D) Araniko and Pasang Lhamu

 

25. To qualify for subsidized tourism loans, hotels and restaurants must possess a logo from which department?

A) Department of Tourism

B) Department of Food Technology and Quality Control (DFTQC)

C) Department of Commerce

D) Nepal Rastra Bank

 

26. As per the Q1 Review, what was the growth of Nepal's exports in the first quarter of 2082/83?

A) 19.8%

B) 35.4%

C) 50.0%

D) 89.6%

 

27. Borrowers in disaster-affected districts like Jajarkot and Rukum can restructure loans by paying what percentage of the outstanding interest?

A) 5%

B) 10%

C) 15%

D) 20%

 

28. The 2082/83 policy mentions the introduction of which type of bank to bypass traditional infrastructure?

A) Development Bank

B) Infrastructure Bank

C) Neo Banks (Digital-only)

D) Wholesale Banks

 

 

29. The "Cash Reserve Ratio" (CRR) for commercial banks remains at what percentage in the 2082/83 review?

A) 3%

B) 4%

C) 5%

D) 6%

 

30. The statutory liquidity ratio (SLR) for commercial banks remains at:

A) 10%

B) 12%

C) 13%

D) 15%

 

31. The Monetary Policy 2082/83 is the _____ edition of the annual monetary policy released by NRB.

A) 20th

B) 22nd

C) 24th

D) 25th

 

32. Who is the current Governor of Nepal Rastra Bank (as of the 2082/83 policy release)?

A) Maha Prasad Adhikari

B) Dr. Chiranjibi Nepal

C) Prof. Dr. Biswo Nath Poudel

D) Bam Bahadur Mishra

 

33. The Q1 review highlights negative inflation in which sector during Ashoj 2082?

A) Education

B) Housing

C) Food and Beverages

D) Clothing

 

34. What is the maximum premium a bank can charge above the base rate for loans provided to hotels/industries in the Mid-Hill/Postal highway regions?

A) 1%

B) 2%

C) 3%

D) 4%

 

35. As per the Q1 Review, what was the growth in federal government expenditure in the first quarter?

A) 0.3%

B) 5.5%

C) 10.8%

D) 15.2%

 

36. "Countercyclical Capital Buffer" implementation was mentioned in the policy context. What is the current status for 2081/82 and 2082/83?

A) Suspended

B) 0.5%

C) 2.5% (Implemented)

D) 5%

 

37. Which system is NRB developing to link bank KYC with National ID?

A) RTGS

B) Centralized KYC (C-KYC)

C) NEPS

D) NPI

 

38. The Q1 review reports that Federal Revenue grew by only ____% in the first quarter.

A) 0.3%

B) 1.5%

C) 2.7%

D) 4.2%

 

39. In which month was the First Quarter Review of Monetary Policy 2082/83 officially published?

A) Kartik 2082

B) Mangsir 2082

C) Poush 2082

D) Magh 2082

 

40. What is the projected global economic growth for 2025 as mentioned in the Q1 review (citing IMF)?

A) 2.8%

B) 3.3%

C) 3.7%

D) 4.3%

Answer Key & Explanations:

Q.No	Ans	Brief Explanation
1	C	6.0% GDP growth is the target set by the government to stimulate the economy.
2	A	NRB aims to keep consumer price inflation within 5% to ensure price stability.
3	C	Broad Money Supply ($M_2$) growth is projected at 13.0% for FY 2082/83.
4	B	Private sector credit growth is targeted at 12.0% to facilitate industrial investment.
5	A	Inflation in Ashoj 2082 was 1.47%, significantly lower than the target due to negative food inflation.
6	B	The Q1 review reduced the Policy Rate from 4.50% to 4.25% to ease lending.
7	C	The upper limit of the IRC (SLF) was reduced to 5.75% in the Q1 review.
8	B	The lower limit (SDF) was kept at 2.75% in the review to manage excess liquidity.
9	B	The Weighted Average Interbank Rate is the standard operating target for NRB.
10	B	The Bank Rate was adjusted to 6.0% in the original 2082/83 policy announcement.
11	C	The limit for share-backed loans was increased to Rs. 25 Crore to boost the stock market.
12	D	Home loan limits were increased to Rs. 3 Crore to support the construction sector.
13	C	First-time buyers enjoy a higher Loan-to-Value (LTV) of 80% (20% down payment).
14	C	Personal OD limits were doubled from 50 Lakh to Rs. 1 Crore in the Q1 review.
15	B	Agriculture loans up to Rs. 10 Lakh are permitted via simplified self-assessment.
16	B	NRB aims for reserves to cover at least 7 months of imports for stability.
17	C	Actual reserves in Q1 were exceptionally high, enough to cover 16.4 months.
18	C	The foreign exchange facility for travelers was increased to USD 3,000.
19	C	Remittance grew by 35.4% in Q1, reaching record highs (Rs. 553 billion).
20	C	The Balance of Payments (BoP) recorded a massive surplus due to high remittances.
21	B	The 1% mandatory difference between institutional and personal FD rates was removed.
22	C	Non-Performing Loans (NPL) rose to 5.26%, a key concern in the Q1 review.
23	D	Microfinance collateral-based loans were increased from 7 Lakh to Rs. 15 Lakh.
24	B	Focus is on the Hulaki (Postal) and Madhya-Pahadi (Mid-Hill) highway corridors.
25	B	DFTQC logo is mandatory to ensure hygiene standards for subsidized tourism loans.
26	D	Exports surged by 89.6% in Q1, driven largely by electricity exports to India.
27	B	10% interest payment is required for restructuring loans in disaster-hit areas.
28	C	The policy introduces the concept of Neo Banks (digital-only) for the first time.
29	B	The Cash Reserve Ratio (CRR) remains stable at 4% for commercial banks.
30	B	The Statutory Liquidity Ratio (SLR) is maintained at 12% for 'A' class banks.
31	C	This is the 24th edition of the Monetary Policy (starting from FY 2059/60).
32	C	Prof. Dr. Biswo Nath Poudel is the newly appointed Governor for this term.
33	C	Food and Beverage recorded negative inflation (-2.54%) in the Q1 review.
34	B	Banks can charge a maximum of 2% premium over the base rate for highway loans.
35	C	Federal government expenditure grew by 10.8% in the first three months.
36	C	Implementation of the 2.5% Countercyclical Capital Buffer is now active.
37	B	Centralized KYC (C-KYC) is being linked to the National ID for easier banking.
38	A	Federal revenue collection growth was stagnant at a mere 0.3%.
39	B	The Q1 review was officially released in Mangsir 2082.
40	A	IMF projected global growth for 2025 at 2.8% (as cited in the NRB document).