Mastering the NRB Officer Exams: 50 Essential Practice Questions on Banking, ICT, and Current Affairs

Are you preparing for the Nepal Rastra Bank (NRB) or other competitive banking exams? This comprehensive guide provides a curated set of 50 high-yield questions covering core Financial Theory, Banking Laws (AML/NRB Act), General Knowledge, and ICT.

From understanding the risk measures of Beta and Standard Deviation to staying updated on 2025's latest diplomatic moves—like PM Oli's visit to the SCO Plus Summit and the new international audit of Nepali commercial banks—this post is designed to sharpen your accuracy and speed. Perfect for aspirants looking for a quick self-test before the big exam day.

Banking and Finance

1) Financial market, brings together the fund suppliers and borrowers with the help of....

a) Negotiator

b) Financial intermediaries

c) Commissioned agent

d) Entrepreneurs

 

2) Perfectly... correlated series move exactly together and have a correlation coefficient of....

a) Negatively; -1

b) Negatively; +1

c) Positively; +1

d) Positively; -1

 

3) ... is a measure of total risk, whereas... is a measure of systematic risk:

a) Standard deviation; beta

b) Beta; standard deviation

c) Standard deviation; variance

d) Coefficient of variation; standard deviation

4) Forward transaction:

a) Minimizes the interest risk

b) Inflation risk

c) Price risk

d) Both a and c

 

5) The minimum paid-up capital to open a commercial bank is:

a) Rs 2.5 billion

b) Rs 8 million

(c) Rs 8 billion

d) Rs 2.5 million

 

6) Large scale computer network spread over a sizable geographic area is called:

a) Local Area Network

b) Wide Area Network

c) Topology

d) RDBMS

 

7) The banker has a statutory obligation to:

(a) Honour customers' cheques

b) Maintain the secrecy of his customer account

c) Exercise Lien

d) Honour customers' Bills

 

8) Bonds may be secured by:

a) Floating charge on assets

b) Fixed charge on assets

c) Unsecured bonds are also issued

d) All of the above

 

9) Wiener Börse is the stock market of:

a) Austria

b) Canada

c) USA

d) France

 

10) New York Stock Exchange (NYSE) is related to:

a) USA

b) France

c) Germany

d) Switzerland

 

11) If the total of the present value is less than the cash outlay of a project, then the project is:

a) Viable

b) Not viable

c) At no risk

d) Nothing can be concluded

 

12) All recurring expenses are:

a) Revenue expenses

b) Capital expenses

c) Deferred revenue expenses

d) Deferred capital expenses

 

13) John Shepard Barson is credited with the idea of:

a) ATM

b) Credit Card

c) Debit Card

d) Plastic money

 

14) Standard and poor is related to:

a) Credit rating

b) Deposit rating

c) Non-banking asses rating

d) None of the above

15) The Bank of England was established on:

a) 1654 AD

b) 1694 AD

c) 1686 AD

d) 1664 AD

 

16) Under what circumstances can the bank close a partnership account:

a) Death of partner

b) Retirement of partner

c) Insolvency of partner

d) Both a and c

 

17) The authorized capital of Rastriya Banijya Bank when it was established was:

a) 3 million

b) 10 million

c) 14 million

d) 21 million

 

 

18) Rs 500 paper currency was issued during the tenure of the governor:

a) Mohan Lal Pandey

b) Yadav Prasad Pant

c) Satya Narayan Acharya

d) Krishna Subedi

 

19) Functions of a bank are:

a) Agency services

b) Advancing loans

c) Accepting deposits

d) All of the above

 

20) Money laundering normally involves...

a) Placement of funds

b) Layering of funds

c) Integrating of fund

d) All of the above

 

21) NRB has provided a license for money transfer to......companies:

a) 36

b) 28

c) 48

d) 49

 

22) Who appoints the governor, Deputy Governor, and directors:

a) Nepal government

b) Finance ministry

c) NRB Board

d) All of the above

 

23) Promoter share of banks and financial institutions can be converted into public share after:

a) 10 years

b) 15 years

c) 7 years

d) 5 years

 

24) An off-balance sheet transaction refers to:

a) Letter of credit

b) Bank guarantee

c) SWAP option

d) All of the above

 

 

25) How many chapters are included in AML act 2064?

a) 12

b) 5

c) 14

d) 8

 

26) Full form of FIU:

a) Fiscal Information Universal

b) Financial Integrated Unit

c) Financial Information Unit

d) None of the above

 

27) ASYCUDA is related to:

a) Customs

b) Money supply

c) Government-financed

d) Accounting

 

28) How many shares of Rs 10 per share should be ordered to buy and sell under a regular lot?

a) 100

b) 80

c) 150

d) 1000

29) IRR is the value of the discount rate at which the NPV of a project is:

a) More than a loan

b) Less than zero

c) Equal to zero

d) Double to zero

 

30) The trading account is prepared to know:

a) Total profit or loss

b) Gross profit or loss

c) Net profit or loss

d) None of the above

 

General Knowledge (GK) & Information and Communication Technology (ICT)

 

31) Where lies the Leaning Tower of Pisa?

a) India

b) Italy

c) France

d) Germany

 

 

32) Who was the first woman minister of Nepal?

a) Dwarika Devi Thakurani

b) Hisila Yami

c) Karima Begum

d) Bidya Devi Bhandari

 

33) How old was Junga Bahadur Rana when he became the Prime Minister of Nepal?

a) 28

b) 29

c) 30

d) 31

 

34) What was Pablo Picasso famous for?

a) Sports

b) Acting

c) Writing

d) Painting

 

 

 

 

35) By what name is the former GATT currently known as?

a) WTO

b) ITC

c) Trade Authority

d) UNCTAD

 

36) Where is the headquarter of UNO?

a) New York

b) Paris

c) London

d) Washington DC

 

37) The term "Fourth Estate" refers to:

a) Judiciary

b) Press

c) Backward Areas

d) Parliament

 

38) Which of the following companies is not soft-drink company?

a) Parle

b) Pepsi

c) Coca Cola

d) Pfizer

 

39) Which of the following is not an export item from Nepal?

a) Garments

b) Tea

c) Pashmina Shawl

d) Steel

 

40) Nepal became a member of Colombo Plan in:

a) 1952 AD

b) 1956 AD

c) 2008 AD

d) 2012 AD

 

41) When did Prime Minister KP Sharma Oli leave for China to attend the Shanghai Cooperation Organization (SCO) Plus Summit?

a) 01 Sep 2025

b) 31 Aug 2025

c) 30 Aug 2025

d) None of these

 

 

 

42) Nepal Rastra Bank has signed an agreement with which country's auditing firm to conduct a detailed asset quality (loan portfolio) audit of 10 different commercial banks in Nepal?

a) Howladar Yunus & Co.

b) Hoda Vasi Chowdhury & Co

c) Syful Shamsul Alam & Co

d) Rahman Huq

 

43) RAM is place on:

a) Hard Disk

b) Extension Board

c) Mother Board

d) USB

 

44) Which of the following is not a Web Browser?

a) Firefox

b) Facebook

c) Chrome

d) Safari

 

 

 

 

45) Banker's algorithm is used to:

a) Prevent deadlock

b) Deadlock recovery

c) Solve deadlock

d) None of these

 

46) Which function key displays the Print Preview window in Microsoft Windows?

a) Alt+Ctrl+F2

b) Alt + F2

c) Shift + F2

d) Ctrl + F2

 

47) Route discovery is done by:

a) Network

b) Data Link

c) Presentation

d) Physical

 

48) Which of the following is not a country domain?

a) .pk

b) .uk

c) .tv

d) .in

49) Which of the following protocols is used to receive email?

a) SMTP

b) HTTP

c) FTP

d) POP3

 

50) What is the name of the location address of the hypertext documents?

a) URL

b) Web Server

c) File

d) Web Address

 ....

Answer Key:

Q.No	Correct Answer	Short Description / Reasoning
1	b) Financial intermediaries	Entities (banks, funds) that bridge the gap between savers and borrowers.
2	c) Positively; +1	A correlation coefficient of $+1$ means variables move perfectly in the same direction.
3	a) Standard deviation; beta	Standard deviation measures total risk; Beta measures market-related (systematic) risk.
4	d) Both a and c	Forward contracts are tools to hedge (lock in) against interest rate and price volatility.
5	c) Rs 8 billion	The current NRB directive requires "A" class banks to have a minimum of 8 Arba capital.
6	b) Wide Area Network	WANs cover large geographical areas (cities or countries), unlike LANs.
7	a) Honour customers' cheques	Banks are legally bound to pay out a customer's funds if the cheque is in order.
8	d) All of the above	Bonds can be backed by specific assets, floating assets, or sometimes no collateral at all.
9	a) Austria	The Wiener Börse is one of the oldest stock exchanges in the world, located in Vienna.
10	a) USA	The New York Stock Exchange is the world's largest exchange, located on Wall Street.
11	b) Not viable	If the present value of future cash is less than the cost (NPV < 0), the project loses money.
12	a) Revenue expenses	Costs incurred for day-to-day operations are categorized as revenue expenses.
13	a) ATM	John Shepherd-Barron is the Scottish inventor famously credited with the first ATM.
14	a) Credit rating	S&P (Standard & Poor's) is a global leader in providing credit ratings for debt.
15	b) 1694 AD	The Bank of England was established as a private bank to act as the Government's banker.
16	d) Both a and c	Death or insolvency legally dissolves a partnership unless the agreement states otherwise.
17	b) 10 million	RBB was established in 1966 with an initial authorized capital of NPR 1 Crore (10M).
18	b) Yadav Prasad Pant	The Rs 500 and Rs 1000 notes were first introduced during his tenure as Governor.
19	d) All of the above	Banks perform primary (deposits/loans) and secondary (agency) functions.
20	d) All of the above	Money laundering stages are: Placement (entry), Layering (hiding), and Integration (exit).
21	d) 49	Current NRB records show 49 licensed remittance/money transfer companies.
22	a) Nepal government	The Council of Ministers appoints the NRB Governor based on Ministry recommendations.
23	a) 10 years	Per BAFIA, promoters can convert shares to public after 10 years with NRB approval.
24	d) All of the above	These items do not appear on the balance sheet until a specific event triggers them.
25	d) 8	The Money Laundering Prevention Act, 2064, consists of 8 Chapters.
26	c) Financial Information Unit	The FIU is a national agency responsible for receiving and analyzing SARs/STRs.
27	a) Customs	ASYCUDA is a computerized system used globally for managing customs data.
28	a) 100	A "regular lot" in the Nepal Stock Exchange traditionally consists of 100 shares.
29	c) Equal to zero	IRR is the specific discount rate where the project's Net Present Value ($NPV$) is $0$.
30	b) Gross profit or loss	Trading accounts focus on direct costs and sales to determine gross margin.
31	b) Italy	The Leaning Tower is the campanile (bell tower) of the cathedral in the city of Pisa.
32	a) Dwarika Devi Thakurani	She became the first female minister in 1959 after the first general elections.
33	b) 29	Junga Bahadur Rana was 29 years old when he took power after the Kot Massacre.
34	d) Painting	Picasso was a Spanish painter and co-founder of the Cubist movement.
35	a) WTO	The General Agreement on Tariffs and Trade (GATT) was replaced by the WTO in 1995.
36	a) New York	While it has offices elsewhere, the UN Headquarters is in NYC.
37	b) Press	The "Fourth Estate" refers to the news media's role in social and political influence.
38	d) Pfizer	Pfizer is an American multinational pharmaceutical and biotechnology corporation.
39	d) Steel	While Nepal produces steel, it is not a major "export" staple like the others listed.
40	a) 1952 AD	Nepal joined the Colombo Plan in 1952 during its meeting in Karachi.
41	c) 30 Aug 2025	PM Oli departed on this date for his official visit to China for the SCO Plus Summit.
42	a) Howladar Yunus & Co.	This Bangladeshi firm was selected for the IMF-mandated bank audit in late 2025.
43	c) Mother Board	RAM sticks are slotted directly into the DIMM slots on the motherboard.
44	b) Facebook	Facebook is a social network; the others are tools used to access the web.
45	a) Prevent deadlock	This resource allocation algorithm tests for safety to avoid system deadlocks.
46	d) Ctrl + F2	This is the standard shortcut in MS Office to open the Print Preview screen.
47	a) Network	Routing and path discovery happen at Layer 3 (Network Layer) of the OSI model.
48	c) .tv	While it's the ccTLD for Tuvalu, it is categorized as a Generic Top-Level Domain (gTLD).
49	d) POP3	Post Office Protocol version 3 is used specifically for downloading/receiving email.
50	a) URL	Uniform Resource Locator is the specific "address" of a resource on the Internet.