NRB Officer Exam Preparation: 35 Essential Banking & GK Questions and Answers (2026 Edition)

Boost your exam readiness with this comprehensive set of 35 Banking and General Knowledge (GK) questions tailored for Nepal Rastra Bank (NRB) Officers and competitive exams in Nepal. This guide covers the NRB Act 2058, monetary policy tools (M1, Bank Rate, IRC), BAFIA, and the Constitution of Nepal. Stay updated with 2026 current affairs, including Nobel Prize winners, G-20 Summit highlights, and COP-30 updates. Perfect for students and professionals, these answer keys include detailed full-form descriptions for terms like KYC, VAT, and Demat to ensure a deep understanding of the Nepalese financial and legal landscape.

1) Nepal Rastra Bank (NRB) is under the Nepal Rastra Bank Act,....

a) 2012 BS

b) 2050 BS

c) 2058 BS

d) 2063 BS

 

2) When did Nepal Rastra Bank issue "medallion coins" with the image of the national animal cow?

a) 2080/06/04

b) 2080/06/05

c) 2080/06/06

d) 2080/06/07

 

3) Nepal Grindlays Bank is later named as:

a) Nepal Investment Bank

c) Himalayan Bank

b) Standard Chartered Bank Nepal

d) Nepal Bank Limited

 

4) Which of the following is not a characteristic of money?

a) It provides a way to measure the relative value of goods and services.

b) It is always backed by something of high intrinsic value, such as gold or silver.

c) It is generally acceptable as a medium of exchange.

d) It allows for saving and borrowing.

 

5) The M1 definition of the money supply consists of:

a) coins and currency in circulation

b) coins and currency in circulation and check able deposits.

c) Federal Reserve notes, gold certificates, and checkable deposits.

d) Federal Reserve notes and bank loans.

 

6) A decrease in the interest rate, other things being equal, causes a(an)

a) Downward movement along the demand curve for money.

b) Upward movement along the demand curve for money.

c) Rightward shift of the demand curve for money.

d) Leftward shift of the demand curve for money.

 

7) If the supply of loanable funds is very inelastic (steep), which policy would likely increase saving and investment the most?

a) a reduction in the budget deficit

b) an investment tax credit

c) an increase in the budget deficit

d) none of the above

 

8) When was the pegged rate of Nepali currency with Indian currency last reviewed?

a) 1994 AD

b) 2000AD

c) 2006 AD

d) 2014 AD

 

9) Since when has Nepal Rastra Bank banned carrying, transporting, and doing business with Indian rupee notes of a rate higher than 100 percent in Nepal?

a) 2080/06/10

b) 2080/06/07

c) 2080/06/05

d) 2080/06/09

 

10) Which of the following banks has launched a credit card for the first time in Nepal?

a) Everest Bank

b) Himalayan Bank

c) Standard Chartered Bank

d) Nepal SBI Bank

 

11) Since when has the Nepal Stock Exchange opened its trading floor?

a) 1976 AD

b) 1994AD

c) 1996 AD

d) 1998 AD

 

12) Value-added tax (VAT) is a type of tax levied on value added by any economic activity, and covers:

a) commodities at the manufacturing level

b) commodities at the manufacturing, wholesaling, and retailing levels

c) commodities at the manufacturing and wholesaling level

d) commodities and services at the manufacturing, wholesaling, and retailing levels

 

13) Which is considered the mother of all Central Banks?

a) Bank of England

b) Risk Bank of America

c) Risk Bank of Sweden

d) Swiss Bank Corporation

 

14) Which of the following is not near money?

a) Paper notes

b) Treasury Bond

c) Treasury bill

d) Bill of exchange

 

15) Direct exchange of goods against goods is called:

a) Charter

b) Money

c) Barter

d) None of these

 

16. What is the full form of BAFIA?

A) Banking and Financial Investment Act

B) Banking and Financial Institutions Act

C) Bank and Finance Information Agency

D) Bank Assets and Finance Institutions Act

 

17. Which of the following is an "Indirect" tool of monetary policy?

A) Credit Ceiling

B) Interest Rate Corridor

C) Direct Lending

D) Moral Suasion

 

18. "Bank Rate" is the rate at which:

A) Banks lend to the public

B) NRB lends to banks

C) Banks lend to each other

D) Government borrows from NRB

 

19. "Dematerialized" (Demat) accounts are used for:

A) Keeping cash

B) Holding shares in electronic form

C) Foreign exchange

D) Paying taxes

 

20. Which of the following is NOT a licensed category by NRB?

A) Class A

B) Class B

C) Class E

D) Class D

 

21) How many parts, articles, and schedules are there in the Constitution of Nepal?

a) 35 part 308 articles and 9 schedules

b) 53 part 308 articles and 9 schedules

c) 35 part 308 articles and 8 schedules

d) 35 part 38 articles and 9 schedules

 

22) Who appoints the leader of the parliamentary party that has a majority in the state assembly as the chief minister?

a) Head of State

b) Prime Minister

c) President

d) Chief Justice

 

23) According to the constitutional provision, how many levels of courts will there be in Nepal?

a) 1

b) 2

c) 3

d) 4

 

24) What is the term of office of the Chief Secretary?

a) 6 years

b) 5 years

c) 4 years

d) 3 years

 

25) Civil Service Act 2049 has divided the geographical area of Nepal into how many categories?

a) 3

b) 4

c) 5

d) 2

 

26) During which part of the public policy cycle does the government explore potential policy responses?

a) Agenda Setting

b) Policy Formulation

c) Policy Implementation

d) Decision- Making

 

27) Which of the following is not a solution to the social security crisis?

a) Increasing federal contributions

b) Raising taxes

c) Reducing benefits

d) Privatizing

 

28) When was the United Nations Conference on Climate Change (COP-30) held?

a) 10-21 Nov 2025 AD

b) 10-21 Oct 2025 AD

c) 10-12 Nov 2025 AD

d) 10-12 Oct 2028 AD

 

29) Who is crowned as the Miss Universe 2025 pageant?

a) Dayanara Torres

b) R’Bonney Gabriel

c) Fatima Bosch

d) Sirikit

 

30) Where was the G-20 Summit 2025 held?

a) USA

b) South Africa

c) Ukraine

d) Sudan

 

31. Who were awarded the 2025 Nobel Prize in Economic Sciences for their groundbreaking research on "innovation-driven economic growth" and "creative destruction"?

A) Daron Acemoglu, Simon Johnson, and James A. Robinson

B) Joel Mokyr, Philippe Aghion, and Peter Howitt

C) Claudia Goldin and Ben Bernanke

D) Amartya Sen and Angus Deaton

 

32. In early 2026, which two major economies reached a landmark "Trade Deal" to significantly reduce tariffs and de-escalate a trade war that began in late 2025?

A) USA and China

B) India and the USA

C) European Union and Brazil

D) Japan and South Korea

 

33. Which city has been designated to host the 2026 APEC (Asia-Pacific Economic Cooperation) Summit, as confirmed by member nations in early 2026?

A) Lima, Peru

B) San Francisco, USA

C) Beijing, China

D) Bangkok, Thailand

 

34. The monetary unit of Nepal is:

A) Mohar

B) Rupee

C) Paisa

D) Dollar

 

35) KYC stands for:

A) Know Your Company

B) Know Your Customer

C) Keep Your Cash

D) Know Your Credit

 

Answer Key & Descriptions:

Q.No	Answer	Description
1	c) 2058 BS	The Nepal Rastra Bank (NRB) is governed by the Nepal Rastra Bank Act, 2058 BS, which provides the central bank with operational autonomy.
2	b) 2080/06/05	NRB issued these commemorative "medallion coins" (non-legal tender) to mark the importance of the national animal, the Cow.
3	b) Standard Chartered Bank Nepal	Originally established in 1987 as Nepal Grindlays Bank Ltd (NGBL), it was later renamed after the parent group took full control.
4	b) It is always backed...	Modern money is "Fiat Money," meaning it is backed by government decree and trust rather than physical gold or silver.
5	b) coins, currency...	M1 (Narrow Money) includes physical currency in circulation and demand deposits (check-able accounts) that are easily spendable.
6	a) Downward movement	A change in the interest rate causes a movement along the curve; a decrease leads to a downward movement as the quantity demanded increases.
7	a) a reduction in the...	Reducing the budget deficit reduces the government's demand for loans, lowering interest rates and encouraging private investment.
8	a) 1994 AD	The exchange rate between the Nepali Rupee (NPR) and Indian Rupee (INR) was last fixed at 1.6:1 in 1994 AD (2049 BS).
9	c) 2080/06/05	This regulation restricts the use of high-denomination Indian currency notes (above ₹100) within Nepal for economic security.
10	b) Himalayan Bank	Himalayan Bank Limited (HBL) was the pioneer in introducing Credit Card services to the Nepali banking market.
11	b) 1994 AD	The Nepal Stock Exchange (NEPSE) officially opened its trading floor on January 13, 1994.
12	d) commodities and...	VAT (Value Added Tax) is a multi-stage tax levied on the value added at every stage of the supply chain, including services.
13	a) Bank of England	Established in 1694, the Bank of England (BoE) is traditionally considered the model for modern central banking.
14	a) Paper notes	Near money refers to highly liquid assets that aren't cash but can be converted quickly. Paper notes are actual money (cash).
15	c) Barter	The Barter System is the oldest form of trade where goods or services are exchanged directly for other goods or services.
16	B) Banking and...	BAFIA stands for the Banking and Financial Institutions Act, the primary law regulating banks in Nepal.
17	B) Interest Rate...	An IRC (Interest Rate Corridor) is an indirect tool used to manage volatility in short-term market interest rates.
18	B) NRB lends to banks	The Bank Rate is the interest rate at which the central bank (NRB) provides rediscount facilities or loans to commercial banks.
19	B) Holding shares...	A Demat (Dematerialized) account is used to hold shares and securities in an electronic format instead of physical certificates.
20	C) Class E	NRB licenses institutions into four categories: Class A (Commercial), Class B (Development), Class C (Finance), and Class D (Microfinance).
21	a) 35 part 308...	The Constitution of Nepal (2072) consists of 35 Parts, 308 Articles, and 9 Schedules.
22	a) Head of State	In the context of Nepal's provinces, the Province Head (Pradesh Pramukh) appoints the Chief Minister.
23	c) 3	Nepal has a three-tier court system: Supreme Court, High Court, and District Court.
24	d) 3 years	The Chief Secretary of the Government of Nepal serves a fixed term of 3 years.
25	b) 4	The Civil Service Act categorizes geographical areas into four levels (A, B, C, and D) for staff transfers and benefits.
26	b) Policy Formulation	This stage involves developing and exploring various effective and acceptable courses of action for addressing problems.
27	a) Increasing federal...	While the others are structural changes, simply increasing contributions without reform doesn't "solve" the underlying systemic crisis.
28	a) 10-21 Nov 2025 AD	COP (Conference of the Parties) 30 is the UN's primary global forum for negotiating climate change action.
29	c) Fatima Bosch	(Note: Based on your 2026 context, this reflects the designated winner for the 2025 pageant cycle).
30	b) South Africa	The G-20 (Group of Twenty) Summit 2025 was hosted by South Africa, focusing on African development and global stability.
31	B) Joel Mokyr...	These economists were recognized for their work on how "creative destruction" (new innovations replacing old ones) drives growth.
32	A) USA and China	This 2026 deal was a major geopolitical event aimed at stabilizing global markets after the 2025 trade tensions.
33	C) Beijing, China	APEC (Asia-Pacific Economic Cooperation) leaders confirmed China as the host for the 2026 summit.
34	B) Rupee	The official monetary unit of Nepal is the Nepalese Rupee (NPR).
35	B) Know Your...	KYC (Know Your Customer) is a mandatory process for financial institutions to verify the identity and risks of their clients.