Master your preparation for the Nepal Rastra Bank (NRB), RBB, and other competitive exams with this comprehensive collection of 51 high-yield MCQs. This set covers essential topics, including Macroeconomics, Monetary Policy, Nepal's current economic status, and General Knowledge, aligned with the latest 2078 Census. Each question is accompanied by a precise answer key and a brief logical explanation to strengthen your conceptual clarity. Whether you are aiming for an Officer level or an Assistant position, these practice questions serve as a vital resource for your pre-test success. Stay ahead in your Lok Sewa journey with Sarapathshala!
1) A country's terms of trade improve when:
a) Import prices rise
faster than export prices
b) Export prices rise
faster than import prices
c) Both import and
export prices fall
d) Trade volume
decreases
2) Which is not a function of a central bank?
a) Issuing currency
b) Accepting deposits
from public
c) Controlling
inflation
d) Acting as lender
of last resort
3) Dumping refers to:
a) Exporting
high-priced goods
b) Selling goods
abroad below cost price
c) Subsidizing
exports legally
d) Protecting
domestic industries
4) Which of the following is a characteristic of an oligopoly?
a) One firm controls
the market
b) No entry barriers
c) Few dominant
sellers
d) Price takers
5) Consumer surplus is:
a) Revenue earned by
firms
b) Difference between
what consumers are willing to pay and what they actually pay
c) Total cost to
consumers
d) Government subsidy
to consumers
6) The IS curve represents:
a) Relationship
between inflation and unemployment
b) Equilibrium in the
goods market
c) Money market
equilibrium
d) Supply of
investment
7) What is the primary function of a central
depository in securities markets?
a) Collect dividends
b) Hold securities in
electronic form
c) Offer insurance to
investors
d) Act as a tax
agency
8) In financial terminology,
"leverage" typically refers to:
a) Reducing capital.
b) Using borrowed
funds for investment
c) Minimizing tax
obligations
d) Avoiding risk
entirely
9) Which of the following is a component of the
current account?
a) Trade balance
b) Foreign investment
c) Capital transfers
d) None of the above
10) BoP surplus indicates:
a) Positive net
inflow of funds
b) Negative net
inflow
c) ) Balanced
payments
d) None of the above
11) Nepal's currency is pegged to:
a) USD
b) Indian Rupee
c) Euro
d) Chinese Yuan
12) Flexible exchange rate is determined by:
a) Central bank
b) Government
c) Market forces
d) None of the above
13) Remittances are recorded in:
a) Capital account
b) Current account
c) Financial account
d) None of the above
14) The balance of payments identity states
that:
a) Current account +
Capital account = 0
b) Current account +
Financial account + Errors = 0
c) Exports = Imports
d) Capital inflows =
Capital outflows
15) Nepal's exchange rate policy aims to:
a) Maintain parity
with USD
b) Maintain stable
parity with INR
c) Keep currency
fixed to Euro
d) Allow free
floating
16) A pegged exchange rate system requires:
a) Large foreign
reserves
b) No intervention
c) Inflation
targeting
d) Flexible interest
rates
17) Which of the following sectors contributes
the largest share to Nepal's GDP?
a) Industry
b) Agriculture
c) Services
d) Manufacturing
18) In Nepal, which industry is considered the
backbone of the industrial sector?
a) Cement
b) Textile
c) Hydropower
d) Leather
19) What is the role of the Nepal Industrial
Development Corporation (NIDC)?
a) Regulate stock
market
b) Issue foreign
currency bonds
c) Promote industrial
development through financing
d) Manage import
tariffs
20) Which of the following is NOT a primary
industry?
a) Mining
b) Textile
manufacturing
c) Forestry
d) Fishing
21) Which of the following foreign aid
instruments can increase Nepal's external debt?
a) Grant aid
b) Technical
assistance
c) Concessional loans
d) Humanitarian aid
22) Which of the following is an example of
humanitarian aid?
a) Construction of
roads
b) Food relief during
natural disasters
c) Hydropower project
financing
d) Education
scholarships
23) Which sector receives the least foreign aid
in Nepal?
a) Energy
b) Infrastructure
c) Defense
d) Health
24) Which of the following is a characteristic
of a development plan?
a) It is short-term
only
b) Focuses solely on
industrialization
c) Outlines medium to
long-term socio-economic objectives
d) Ignores public
policies
25) The main source of financing Nepal's
development plans is:
a) Foreign private
investment
b) Government revenue
and foreign aid
c) Domestic savings
only
d) Commercial bank
loans
26) Fiscal policy primarily deals with:
a) Money supply
management
b) Government
spending and taxation
c) Trade regulation
d) Interest rate
setting
27) Monetary policy is mainly concerned with:
a) Budget deficits
b) Controlling money
supply and interest rates
c) Trade tariffs
d) Price controls
28) If the price elasticity of demand for a
product is less than 1, demand is:
a) Elastic
b) Unit elastic
c) Inelastic
d) Perfectly elastic
29) Which policy instrument is used to protect
domestic industries from foreign competition?
a) Monetary policy
b) Tariffs and quotas
c) Fiscal stimulus
d) Wage Controls
30) Which policy aims to reduce income inequality
in Nepal?
a) Export policy
b) Monetary policy
c) Social welfare
policy
d) Trade
liberalization
31) In which district does the Halesi Cave lie?
a) Khotang
b) Banke
c) Kaski
d) Kalikot
32) To which of the following caste is the
Chandi Dance concerned?
a) Gurung
b) Newar
c) Rai
d) Tharu
33) The United States of America adopted a
democratic constitution in:
a) 1932
b) 1787
c) 1877
d) 2000
34) Who is the last king of Rana Dynasty?
a) Chandra Shamsher
b) Dev Shamsher
c) Mohan Shamsher
d) Padma Shamsher
35) Who wrote the book "My expression after
death”?
a) Madan Mani Dixit
b) Bal Krishna Sama
c) Laxmi Prasad
Devkota
d) Rhishikesh Shah
36) What percentage of the population of Nepal
follow the Buddhist religion according to national census 2078?
a) 5.09%
b) 8.21%
c) 1.76%
d) 0.35%
37) When did the program budget start in Nepal?
a) FY 2013/14
b) FY 2008/09
c) FY 2026/27
d) FY 2033/34
38) How many fundamental rights has been
provided by the Constitution of Nepal?
a) 30
b) 31
c) 32
d) 33
39) How many Concurrent Powers of Federal and
State levels are there?
a) 25
b) 22
c) 21
d) 15
40) South Asia University jointly established
by eight SAARC member states is in:
a) New Delhi
b) Dhaka
c) Kathmandu
d) Islamabad
41) Antonio Guterres, who has been sworn-in as
the Secretary General of the United Nations, is the former Prime Minister of
which country?
a) Portugal
b) Spain
c) Greek
d) Czech
42) Where was the 4th BIMSTEC Summit held?
a) Myanmar
b) Bangladesh
c) Nepal
d) India
43) Which river is the deepest in Nepal?
a) Karnali
b) Gandaki
c) Koshi
d) Mahakali
44) How many MW of electricity can be generated
from the Gandaki River?
a) 22,000 MW
b) 21,000 MW
c) 18,000 MW
d) 25,000 MW
45) Which river has the largest drainage area
in Nepal?
a) Gandaki
b) Koshi
c) Karnali
d) Mahakali
46) Which of the following lakes is situated in
the Dolpa district?
a) Fewa Lake
b) Foksundo Lake
c) Tilicho Lake
d) Rara Lake
47) What is the main type of vegetation in the
Amazon rainforest?
a) Desert
b) Tropical
Rainforest
c) Grassland
d) Tundra
48) Which continent has the most extensive içe
cover?
a) North America
b) Antarctica
c) Asia
d) Europe
49) Which article provides the right to
information?
a) Article 25
b) Article 27
c) Article 29
d) Article 31
50) How many main organs does the UN have?
a) 5
b) 6
c) 7
d) 8
51) When did Nepal's Parliament approve the MCC
compact?
a) 2078 Magh 15
b) 2078 Falgun 15
c) 2078 Jestha 1
d) 2079 Baisakh 5
Economics & General Knowledge Answer Key:
|
Q.N. |
Ans |
Brief Explanation |
|
1 |
b |
ToT improves when export prices rise faster than import
prices. |
|
2 |
b |
Central Banks do not deal with the general public (retail
banking). |
|
3 |
b |
Dumping is selling goods in a foreign market below the
cost of production. |
|
4 |
c |
Oligopoly = "Few" large sellers (e.g., Telecom
in Nepal). |
|
5 |
b |
It is the utility "bonus" a consumer gets ($Willingness
- Actual \ Price$). |
|
6 |
b |
The IS curve shows equilibrium where $Investment =
Savings$ (Goods Market). |
|
7 |
b |
Primary role of a Depository (like CDSC) is electronic
record-keeping. |
|
8 |
b |
Leverage is the use of debt to increase the potential
return of an investment. |
|
9 |
a |
Trade balance (goods) is the core of the Current Account. |
|
10 |
a |
BoP Surplus means the country is a net creditor to the
rest of the world. |
|
11 |
b |
Fixed exchange rate: $NPR \ 160 = INR \ 100$. |
|
12 |
c |
Determined by the "invisible hand" of Market
Forces. |
|
13 |
b |
Remittances are Secondary Income within the Current
Account. |
|
14 |
b |
The BoP Identity must include the Financial account and
errors to sum to zero. |
|
15 |
b |
Stability with the Indian Rupee is the anchor of Nepal's
trade policy. |
|
16 |
a |
To defend a peg, the bank must have Reserves to buy/sell
currency. |
|
17 |
c |
Services contribute ~52.6% to Nepal's GDP (Economic
Survey 2080/81). |
|
18 |
c |
Hydropower is the strategic backbone for Nepal's
industrial future. |
|
19 |
c |
NIDC was specifically created for industrial project
financing. |
|
20 |
b |
Textile manufacturing is a secondary (processing)
activity. |
|
21 |
c |
Loans create a repayment obligation, whereas grants do
not. |
|
22 |
b |
Humanitarian aid is for emergency survival (food,
medicine). |
|
23 |
c |
Foreign aid is generally prohibited in the Defense sector
due to sovereignty. |
|
24 |
c |
Development plans are Medium-term (usually 5 years)
strategic goals. |
|
25 |
b |
Nepal’s capital expenditure is largely funded by Revenue
+ Foreign Aid. |
|
26 |
b |
Fiscal policy = Budget (Taxation + Expenditure). |
|
27 |
b |
Monetary policy = Money Supply + Interest Rates. |
|
28 |
c |
Elasticity < 1 is Inelastic (consumers are not very
price-sensitive). |
|
29 |
b |
Tariffs and Quotas are the primary "Trade
Barriers." |
|
30 |
c |
Social welfare aims at redistribution to bridge the
wealth gap. |
|
31 |
a |
Halesi Cave is in Khotang (known as the Pashupatinath of
the East). |
|
32 |
c |
Chandi/Sakela is the identity of the Rai community. |
|
33 |
b |
The US Constitution was signed in 1787. |
|
34 |
c |
Mohan Shamsher was the last Rana PM (ended in 2007 BS). |
|
35 |
b |
Bal Krishna Sama |
|
36 |
b |
8.21% follow Buddhism (Census 2078). Hindu is 81.19%. |
|
37 |
c |
Program budgeting began in FY 2026/27 BS. |
|
38 |
b |
There are exactly 31 Fundamental Rights in the 2072
Constitution. |
|
39 |
a |
Schedule 7 of the Constitution lists 25 concurrent
powers. |
|
40 |
a |
South Asian University is located in New Delhi. |
|
41 |
a |
Guterres is from Portugal. |
|
42 |
c |
Kathmandu hosted the 4th BIMSTEC Summit in 2018. |
|
43 |
b |
Narayani (Gandaki) is the deepest; Koshi is the largest
(volume). |
|
44 |
b |
The Gandaki basin has an estimated capacity of 21,000 MW. |
|
45 |
b |
Koshi has the largest drainage basin in Nepal. |
|
46 |
b |
Phoksundo is in Dolpa (Tilicho is in Manang, Rara in
Mugu). |
|
47 |
b |
The Amazon is the definition of a Tropical Rainforest. |
|
48 |
b |
Antarctica holds the world's
largest ice sheet. |
|
49 |
b |
Article 27 covers Right to
Information. |
|
50 |
b |
The UN has 6 principal organs. |
|
51 |
b |
Parliament ratified the MCC on Falgun 15, 2078. |
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