Professional Documents
Culture Documents
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15. No. of merger of BFIs till date: 136 merger to form 44 FIS(90 LAPS)
16. CRR (Cash Reserve Ratio): 6% for A class, 5% & 4% for B & C class FIS.
17. SLR (Statutory Liquid Ratio): 12% for A class, 9% & 8% for B & C class FIS.
18. CD Ratio is being monitoring by NRB on daily basis Dated 2074-01-01
19. TSA(Technical Service Agreement) will be taken on the following basis,
20 to 50 Percent foreign investment ----Take 5 Person
More than 50 percent foreign investment ----Take 7 Person
Time for TAS 5 Year & to be renewal
TSA not allowed other than joint venture bank
20. Re-financing rate of NRB to FIS in Agro/Hydro/Poultry/Dairy and Directed other special
Sectors: 4% which is financed by commercial banks by 9%
21. Refinancing period from NRB 12 Month and Maximum refinancing amount is equal to
25% core capital of respective BFIs.
22. General Refinancing rate through NRB 4 % and BIs can taken from customer maximum
9%
23. Specific Refinancing rate through NRB 1% and BIs can take from customer maximum
4.5%
24. Export refinancing by NRB with 1% interest and BFI can take 4.5% from customer.
25. Small & Medium Industries refinancing by NRB 5.00% & BFI by 10.00%.
26. BFIs have allocated 1% of Net Income to Corporate Social Responsibility Fund.
27. Board of Directors Educational Programme to be conducted within one month after the
joining date of BODs and to participating all BOD members at list one orientation
programme in every year.
28. BFIs have allocated 3% of total employee expenses for the career development &
training programme to the employees.
29. Total municipal office 744 (Village council 481, Municipality 246, Sub. Metro city 13 &
Metropolitan City 4)
30. Under 1 regional office of nay BFIs Minimum 10 branches required in that 40% of the
branch presence shall be in rural area.
31. NRB's approaches of Handling Liquidity problem by Repo/Reverse Repo:
I) Regular Market Operation (7 days)
II) Fine Tuning Operation(upto 3 months)
III) Open Market Operation (6 months)
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(Note: The amount of repo/reverse repo to be issued by NRB can't be more
than 2 % of local currency deposit of all BFIs inside Nepal)
32. Repo/Reverse repo auction period: 21 days (earlier 28 days)
33. Rate for Land of Last Resort: 7% (NRB to problematic FIS)
34. Mandatory Loan portfolio for Commercial Banks: 20% of Total loan in Productive Sector
including 15% for agro & hydro sector at the end of Ashadh end 074. Similarly, 15% &
10% for B & C class FIS.
35. Mandatory loan portfolio for Commercial bank : 5 % total loan in Productive sector loan
which including 2% on direct landing up to Ashad 2075.
36. As on 2073 Poush Production sector landing is Rs.254.1 Arab which is 15.9% of total
banking landing & as on Chaitra end Rs.283.89 Arab which is 17.1%.
37. NRB approach for monitoring BASEL-3 liquidity assessment: Prompt Corrective Action
(PCA audit)
38. Total duration of Directors post in FIS: Continue for maximum of 2 years.
39. Division of % for which can't be in the post of Executive post in FIS: 1% of paid of
capital
40. Name of New Reporting System of upcoming Basel-3: IFRS (international financial
reporting standard)
41. Zero percentage of Interest rate subsidy for opening of new microfinance branches in
specified districts by NRB : Rs. 30 Lac
42. No. of FIS in Nepal: 28 Commercial Banks, 54 B class development bank, 33 C class
finance, 50 D class micro-finance (As on Baishakh End 074)
43. Mandatory Deposit Insurance for FIS: Upto Rs. 2 Lac (EBL is the first Commercial Bank
to make deposit insurance)
44. Latest Anti-Money Laundering Act 2064, Merger Bylaws & Acquisition act, 2073
45. FATF: Financial Action Task Force(for AML purpose)
46. NRB's software to monitor Anti money Laundering unit: 'goAML' software
47. NRB's Approach for Environmental & Corporate Social Responsibility: CAMELS rating
48. Limit of Net Interest Spread for all BFIs: 5% (Average Yield-Cost of Fund)
49. Capital Requirement of National Level BFIs upto 2071 Ashadh:
A class: Rs. 8.00 Arab (8 Billion)
B class: Rs. 2.5 Arab (National level), Rs.1.20 Arab( 4-10District) Rs.50.0Crore (1-3
Dist)
C class: Rs. 80 Crore (for National level+4-10Dist), Rs. 40 Crore for other(1-3 dist)
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50. No. of goods allowed to be imported from India: 161
51. Average Interest Rate as on Chaitra End 2073
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6. Free director who holds less than 0.1 percent of share in any BFIs can be only 1 tenure.
7. Board meeting of any BFIs shall be 12 times in a year and differences of one meeting to
another meeting will be 60 days i.e 2 months.
8. Minimum attendance of BOD meeting will be 51% and any BOD is absence upto
continue 3 meeting shall considered as void.
9. If any changes in BOD happened in any BFIs the bank shall be inform to NRB within
15 days of appointment & for CEO 7 days.
10. General reserve provisions in any BFIs.
a) 20% of net profit shall be transfer to reserve till the double of paid up capital of the
bank. After doubled the capital 10 % shall be transferred to general reserve of the
bank.
11. Exchange equalization reserve: 25% of income from foreign exchange currency except
INR shall be transferred to exchange equalization reserve.
12. Audited Committees meeting held at list 1time in every three month.
13. Audited Financials should be completed within 4 month of each financial year.
14. For opening new BFIs in Nepal the NRB gives permission within 120 days after
submission of all required documentation process.
15. 30% for general public & 0.5% for employees shares shall be issued.
16. Prior approval from NRB is needed for issuing of debentures & other financial
instruments.
17. BFIs shall issue 30 % of shares to public after 3 years of BFIs operation.
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17. Investment Adjustment Reserve: 2% of Available for sale portfolio
18. Net Open Position Approach: 5% of capital charge for market risk
Formula=(Assets-Liabilities in a same currency)
19. Supervisory Review Process includes:
i) ICAAP
ii) Supervisory Review
iii) Supervisory Response
20. In case of bank has provided loan facilities in excess of SOL: 10% of such
excess exposure shall be added to the RWA for credit risk
21. If the bank has been involved in the sale of credit with recourse facility: 1% of
the sale value shall be added to the RWA for credit risk
22. Where the bank do not have satisfactory Asset Liability Mgmt policies:
additional 1% of net interest income of previous immediate FY shall be added
ti the RWA of market risk
23. Where the Bank's net liquid asset to total deposit ratio is less than 20%, a risk
weight of 1% of total deposit for each shortfall % is added to the RWA.
Note: net liquid assets=(cash & bank balance+money at call+placement upto 90 days
and investment in govt. securities)
24. Where the bank do not adopt sound practices of management of operational
risk: an additional charge of 2%-5% of gross income of immediate previous
financial FY shall be leived for operational risk
25. In general, banks are required to report to NRB of their CAR computation on
monthly basis within one month after the end of the previousmonth.
II. LOAN CLASSIFICATION & LOAN LOSS PROVISIONS
26. Classification of loan an provisions:
Classification Period Provisions
i) a) Pass upto 3 months
1%
b) Watch List failed to provide at least single installment/1 month+ 5%
ii) Sub-Standard upto 3-6 months 25%
iii) Doubttful Loan 6-12 Months 50%
iv) Bad Debt 12 months+ 100%
27. Non performing Loan (NPA)=Weighted average of respective provision of Sub
Standard+Doubtful+Bad Loan with Total Loan
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28. Pass Loan constitutes:
a) Gold Loan
b) FD receipt Loan
c) Security bearing by Nepal Government
d) Renewal of Short term loan having tenure of maximum upto 1 year
29. Credit Card Loan/Hydropower Project/Transmission Line/Cable Card related
Loan which are not write off (repayed) within 90 days are supposed to be Bad
Loan
30. General Grace period (sanction date to first instalment period) for Term Loan: 1
year
31. Provision of Re-Structured/Re-Scheduled Loan which are in only in a pass
category 12.50%
32. Provision of Nepal Govt Rugna Industries Re-Structured/Re-Scheduled Loan
which are in only in a pass category: 25%
33. Once Re-Structured/Re-Scheduled Loan fall under Substandard/Doubt/Bad
Loan category should be regular for 2 years of repayment will be converted
Pass Loan Category.
34. Provision for Re-Structure/Re-Scheduled Loan fall under National Level
Priority basis Projects such as Hydropower/Cable Car/Cement factory will be
1% only and categorised as PASS LOAN.
35. Provision for Re-Structure/Re-Scheduled Loan fall under Poultry
Entrepreneurship affected by Bird flu will be 1% only and categorised as PASS
LOAN.
36. If the Loan is insured in Deposit and Credit Guarantee Corporation, the loan
can avail 75% discount on loan loss provision.
37. Extra Loan Loss provision for third party collateral: 20% extra in each loan loss
provision category
38. Extra Loan Loss provision for those loans which are provided with
Individual/Corporate guarantee: 20% extra in each loan loss provision category
39. FIS can change their classification of loan to lower level whatever they want.
40. Name of Loan Loss provisions;
i) Performing loan : General Loan Loss Provision
ii) Non-Performing loan : Specific loan loss Provision
41. Provisioning of NBA(Non-Banking Assets, which are adopted by someone
while categorised under NPA): 100% from the date of acceptance
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42. It is necessary to list the client as black listed while accepting the NBA
securities for loan more than Rs. 25 Lac
43. Terminologies:
CS: Credit Sale, CP: Credit Purchase, RP: Re-Purchase, TO:Takeover
44. It is not allowed to provide loan or accept deposit with the financial guarantee
of any Domestic BFIs present in inside of Nepal.
45. General provision of Loan for IPO of public limited company; not allowed for
first 7 days of offering for which the shares are not fully subscribed.
46. IPO Loan after 7 day; for the fully unsubscribed shares can be allowed for
margin upto 50% maximum (time-upto the period of refundable and are not
supposed to be restructure/rescheduled)
47. Margin Lending: Valuation of Shares will be made in average of last 180 days
trading price at NEPSE or the current market price whichever is lower(once
sanctioned there is no additional credit facilities for the revaluation of same
securities)with 50% margin only.
48. Margin call can be called off in within of 7 days if the share price decreased
from the prescribed margin and collect margin within 35 days from the
customer.
49. No margin call; upto 10% decreased in the price of share or the current value of
shares which is 1.5 times greater the total margin lending.
50. Maximum tenure of margin lending: 1 year (subjected to renewal for
satisfactory performance)
51. Margin lending loan loss provision: 1% for pass loan & 100% for other than
pass loan.
52. Maximum margin lending option: not more than 25% of core capital of ownself
to one listed company & Maximum Margin lending is equal to core capital of
ownself.
53. Duration of confirmation of settlement of Bank Guarantee claim; 7 days
(confirmation of either pay or not) & next 7 days if the claim is to be paid.
54. Risk weighted value for possible guarantee claim: 200% while calculating
CAR
55. No restriction for providing Hire Purchase Loan for regional working station.
56. TR loan: Allowed maximum upto for 150 days up to 2074 Ashadh.
57. PAN no. is needed from the borrower (each individual of group borrower) if the
total loan is in excess of Rs. 1 Crore.
58. Restriction of Loan to CEO/BOARD member/Management committee member
except loan against govt debenture and Credit card loan.
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III) SOL, SINGLER OBLIGOR LIMIT
59. SOL limit for a single borrower: 25% of core capital (Fund Based+Non-Fund
Based)
60. SOL limit for production & employment/export/agro sector/cement
factory/tourism and other productive sector loan: upto 30% of core capital
61. Hydropower Project/Transmission line/Cable Car project-upto 50% of Core
Capital (for hydropower project PPA agreement is needed with the concerning
authority)
62. First Instalment period for Hydropower Project/Transmission line/Cable Car
project: Prescribed Moratorium period or Electricity Production date which is
earlier
63. No limit for SOL for Nepal Oil Corporation (NOC), Nepal Food Corporation
(NFC) & Krishi Samagri Company Ltd.
64. Real Estate Loan: allowed upto 50% of fair market value, if Residential Real
Estate: 60.00% of fair market value (Home loan of Rs 1 Crore or less than Rs.
1 crore are supposed to be residential real estate loan)
65. Limit for Real Estate Loan for BFIs: Maximum of 25% of total Loan or 10%
only of the total loan for Land Purchase purpose real estate loan.
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112. CRR is calculated in an every two week (14 days) and taken an account for the
calculation of the value of deposit liability of earlier 2 weeks time &
maintained 70% CRR on daily basis.
113. Exchangeable foreign currency account, margin accounts are not considered
while calculating CRR.
114. SLR calculation: CRR amount in NRB+ Cash Balance of Vault+ Investment in
govt securities(T-bills/development debenture)+ cash balance in other FIS
which are supposed to be available except by national level FIS divided by total
local currency deposit liability in previous monthly basis value.
115. Fine & Charges for not maintaining prescribed SLR;
d) For first time: insufficient amount of SLR*prevailing bank rate
e) For 2nd time: insufficient amount of SLR*2 times of prevailing bank rate
f) For 3rd time onwards: insufficient amount of SLR*3 times of prevailing bank
rate
XIV) OPENING OF NEW BRANCH OFFICE
116. Opening of new branch office of FIS cannot be allowed whose NPA is more
than 5% on the immediate previous quarter.
117. In NRB directives 14 districts are categorised as districts of non-presence of
FIS, where if the FIS opened a new branch office, NRB will provide Rs. 50 Lac
as refinance facility in zero interest inside the districts and Rs. 1 Crore inside
the same districts but out of the district headquarter.
118. Provision for opening a new branch office in KTM
a) At least one branch office with the 14 districts &
b) 2 more branch office at outside of the KTM valley(at least one outside of the
district headquarter or municipality)
119. Extension counter: for only outside of KTM valley except special case
120. New Branch will be open within 6 month after approve date of NRB.
XV) INTEREST RATE
121. Net interest spread: 5%
122. Base rate %: Cost of fund%+ Cost of CRR%+ Cost of SLR%+ Cost of
Operation%+ROA%
123. Cost of fund%: Weight aged average % of local currency deposit liability
124. Cost of CRR%: CRR amount*Cost of fund/Invest able fund amount.
125. Amount in Invest able Fund:
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Average amount of local currency deposit+ Average amount of Local borrowings-
Average amount of SLR
126. Cost of SLR%: Amount of net SLR*(Cost of Fund%-Average interest of govt
securities)/ Invest able fund amount.
127. Net SLR=Average amount of SLR-Average amount of CRR
128. Cost of Operation % =Total operational expenses*85/Average Invest able fund
amount.
129. ROA % = Standard 0.75%
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136. Rate Land of Last Resort: At Prevailing Bank rate for maximum 6 months
137. BFIs can collect deposit from one institution not more than 20% of total
deposit.
138. Corporate deposit is not more than 50% of total deposit.
139. ABBS/ DR charge free for natural person up to Rs.2.00lacs.
140. Deposit collection limit
a) A class Bank No limit
b) B class Development Bank 20 times of core capital
c) C class Finance Company 15 times of core capital
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10. Depreciation Rates:
a) Building, Permanent Structures : 5%
b) Computer/Furniture instruments : 25%
c) Automobiles/Bus/Minubus : 20%
d) Mining and Construction : 15%
e) Intangeable Assets : Cost/Life Span
11. VAT commencement in Nepal: 2052 BS (by 10%), now it is 13%
12. Nepal Budget for Current F/Y: 1279.99 billion
13. Current Expenditure Rs. 803.53Arab(62.80%), Capital Expenditure Rs. 335.17
Arab(26.20%) and Financial Management Rs.140.29 Arab
14. No tax will be levied for importing 32' TV from foreign employment countries
15. 3 E's in Economics: Economy, Efficiency & Effectiveness
16. Public Purchase Act ongoing today: 2063
17. Nepal Chartered Accountant Act: 2053 now
18. Nepal Accounting Standard Board: 13 members
19. Nepal Auditing Board: 7 members
20. No one can audit of the same company for minimum of 3 years, who is the ex-
salaried staff of the same company
21. Limit for auditing:
a) CA, A class: No Limit
b) RA, B Class: Rs. 40 Crore of the value of Assets or Liabilities
c) RA, C lass: Rs. 10 Crore of the value of Assets or Liabilities
d) RA, D class: Rs. 1 Crore of the value of Assets or Liabilities
22. Audited General Office establishment: 2016/03/15
23. Basis of Auditing: 4 types (theories, basis, main assumptions, guidance)
24. Audit types: 8 (continuous, final, interim, partial, tax, cash, cost & mgmt)
25. Models of Double Tax Avoidance Agreement (DTAA): 3 types (UN, OECD &
USA Model)
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E. COMPANY ACT, 2053
1. Current prevailing company act: 2063 BS
2. Member of a company:
a) Private Company: 1-101 members
b) Public Com: 7- no limit
3. Those companies which distribute dividend: Limited company
4. Paid up capital of Public Company: Rs. 1 Crore (other than directed by NRB)
5. Main fundamental Shareholder: 5% share holding for public company or but if the
paid up capital is more than Rs. 25 Crore, than 10% shares holding
6. Prior information time to be published for calling AGM: 21 days
7. Prior information time to be published for calling Special General Meeting: 15 days
8. AGM calling time: 1st AGM within a year of commencement, and then 6 months after
the ending of same F/Y
9. Management BOARD member in a public Company: 5-7 (4 years of period)
10. Board members of NRB: 7 (governor 1-chairman, Deputy governor 2, secretary of
ministry of finance 1, external experts, 3)
11. Partnership firm required minimum partner 2 & maximum 50
F. MISCELLANEOUS
1. The number of peoples of Nepal under poverty line: 25.2%
2. The area of land covered by forest in Nepal: 39.60% (Target for 2015-40%)
3. Nepal's Population under Census, 2068 BS: 2,64,94,504 (growth rate 1.35%, Male:
48.50%, Female: 51.50%)
4. Per capita Income of Nepali peoples: 862 USD annual
5. Public Entreprises in Nepal: 37 (19 in profit for F/y 2070/71, 17 in Loss, 1 has not
transaction for the F/Y 2070/71)
6. Area of Nepal: 1,47,181 Sq. Km (17% or 16 Districts Hilly Region, 68% or 39
Districts Mountainous Region & 15% or 20 Districts in Terai Region)
7. Biggest National Park: She-Phoksundo
10. Nepal's Time under Greenwich Mean Time: 5.45 hour fast
11. Nepal's length of East to West: 885 KM, North to South: 193 Km
15. Richest country in hydropower capacity in the world: Brazil(1st), Nepal 2nd
16. One Pillar bridge: Karnali river, Egg Basket Distric: Chitwan
17. No of mountains higher than 8000 meters in the word: 14 (out of these 8 in Nepal)
23. No. of districts touches both China an India : 2 (Taplejung & Darchula)
31. Origin place of earthquake inside the earth: hypocentre, the outermost surface of
hypocentre: Epicentre
32. Machine which measures magnitude, latitude, origin place of earthquake-
Seismograph, measurement machine of scale of earthquake: Richter scale
33. The biggest planet: Jupiter, Smallest: Mercury , total planets: 8 in solar system
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37. The gateway of Nepal: Birgunj, gateway of India-Mumbai
39. Organized Nepali Year; Tourism year for Nepal: 2011 AD, Lumbini Visit year: 2012
AD; Visit Nepal: 1998
40. Oldest temple of Nepal: Swyambhunath Temple
43. First commercial bank of Nepal: Nepal Bank (1994 Kartik 30 BS)
45. First Joint venture Bank of Nepal: Nepal Arab Bank(Nabil Bank)
47. India Prime Minister Narendra Modi first visit in Nepal: 16th of Shrawan 2071
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Foreign Minister: Susma Sworaj
First President of India: Rajendra Prasad
First Prime Minister: Jawaharlal Nehru
RBI Governor Mr. Urjeet Patel 24th Governor of India from September 2016.
54. First country of the world to became first diplomatic relationship of Nepal: Britain
63. Hydropower capacity of Upper Karnali/Arun 3rd Projects: 900 Mw (PDA done with
GMR & Satlaz Company, India respectively)
64. First Five Year Plan Commencement in Nepal: 2013-2018 (Presently its 13th plan for
3 years i.e. 070-73)
65. When did Nepal got membership in WTO(earlier GATT): 2004 April 23, 2061
Baisakh 11 (147th member) Switzerland,Zeneva-Headquarter, (Total member now-
164)
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66. Establishment of IMF HQ-Washington DC: 1956 Est of. World Bank HQ-Washington
DC: 1945 Asian Development Bank( HQ-Manila-Philippines): 1996
67. The science which deals with the currency/currency printing activities: Lithology
69. How many authorised languages in UN: 6 (out of these French & English are official
language)
70. Nepal's UN's Membership: AD. 1955 December 14 (total member of UN till now: )
71. The most of the expense/budget of UN borne by: USA (Nepal borne 0.01% of
expenses of UN)
72. How many permanent member in UN: 5
Australia: Canberra
Canada: Ottawa
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Greece: Athens:
Portugal: Lisbon
Russia: Moscow
Italy: Rome
Indonesia: Jakarta
Norway: Oslo
78. Where the FIFA World Cup 2018 going to held: Russia, Quatar(2022), Latest
2014(Brazil)
79. Which country was the winner of 2014 football world cup: Germany (Argentina 2nd )
81. Which is the South Asian nation that has prohibited the sale of cigarette in its territory?
-Bhutan (since 2004 AD), first in the whole world
83. When did Krishna Prasad Bhattarai, a founder leader of the Nepali Congress and
former Prime Minister pass away?
-20 Falgun, 2067
84. When did Sai Baba, a famous spiritual guru of India pass away?
-24 April, 2011
86. Approximately at what rate does temperature decrease with the increase in height?
1C/165 m
87. Where does the Nepal Rastra Bank submit its annual report to?
Ministry of Finance
88. Who is the second chairman/vice-chairman of national planning commission Nepal ?-Dr.
Min Bahadur Shrestha.
89. Who constructed the Shital Niwas that accommodates the present President Building?
Chandra Shumsher
G. INTELLIGENCE QUOTATION
1. The group of termites: Colony
25
2. If an owl can fly over a night of distance of 50 KM, how it will be in a day & in night
together? 50 Km
3. 25 poles are placed in between 100/100 meters of each poles, what is the distance
between 1 pole & last pole: 2400
4. Ram walks 3 meter in the direction of east, turns south and walks 4 meter ahead. How
much far in distance is he from the original place? 5 Meter
Note: Pythagoras Rule; Hypotenuse= Square of Perpendicular+Square of Base
If, Row=Column
Ans: 5*5+4*4+3*3+2*2+1*1=55 squares
6. Simple Interest Formula= Principal(P)*Time(T)*Rate(R)
100
7. The total sum of angles in a Triangle: 180 Degree
8. Total Sum of angles in a Square or a Circle: 360 Degrees
9. Converting fraction into %: multiply by 100%
10. Converting % into fraction: Divide by 100
11. A father said to his son 'I was as old as you are at present at the time of your birth'. If
the father's age is 40 years now, the son's age?
20 Yrs
12. a & b are odd numbers, which is an even of the following
a) a+b b) a+b+1 c) ab d) ab+2
13. Shital does have Rupees R, She expenses Paisa P, How much money does she have
now?
a) R-P b) P-R c)100R-P d) 100R-P
100
14. The average of 5, 10, 15 and x is 20, what is the value of x
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50
15. The sum of first 50 natural no? (sum of numbers from 1-50)
N*(N+1) =50*(50+1)/2, =1275
2
16. The product of two numbers is 48, sum of their 16; what is the smaller number?
4
17. If a boy covers 4km in 20 Mins, how much distance he covers in 45 mins?
9 Km
18. The sum of five consecutive numbers is nn, it the next two numbers are also included,
average will be:
Remain the same
Increase by 1
Increase by 1.4
Increase by 2
19. A's salary is 20% more than B's. By what % B's salary is less than A.
16.66%
20. It 30% of the number is 48, what is the next 70%?
112
21. The average numbers of 20 numbers is 0, among them, how many numbers in
maximum may be greater than 0.
19
20
1
0
22. Leap is the year which is divisible by 4 by full.
H. GENERAL ECONOMICS
1. The fundamental economic problem faced by all societies is:
a. unemployment
b. inequality
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c. poverty
d. Scarcity
2. "Capitalism" refers to:
a. the use of markets
b. government ownership of capital goods
c. private ownership of capital goods
d. private ownership of homes & cars
3. The law of demand states that:
a. as the quantity demanded rises, the price rises
b. as the price rises, the quantity demanded rises
c. as the price rises, the quantity demanded falls
d. as supply rises, the demand rises
4. The price elasticity of demand is the:
a. percentage change in quantity demanded divided by the percentage change in
price
b. percentage change in price divided by the percentage change in quantity demanded
c. dollar change in quantity demanded divided by the dollar change in price
d. percentage change in quantity demanded divided by the percentage change in
quantity supplied
5. The goal of a pure market economy is to best meet the desires of
a. consumers
b. companies
c. workers
d. the government
6. In a market system, sellers act in ____________ interest, but this leads to
behaviors in ____________ interest.
a. self; self
b. self; societys
c. societys; societys
d. societys; self
7. The law of diminishing (marginal) returns states that as more of a variable factor
is added to a certain amount of a fixed factor, beyond some point:
a. Total physical product begins to fall
b. The marginal physical product rises
c. The marginal physical product falls
d. The average physical product falls
8. Which of the following is a characteristic of pure monopoly?
a. one seller of the product
b. low barriers to entry
c. close substitute products
d. perfect information
9. In pure monopoly, what is the relation between the price and the marginal
revenue?
a. the price is greater than the marginal revenue
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b. the price is less than the marginal revenue
c. there is no relation
d. they are equal
10. The demand for labor is the same as the
a. marginal revenue product
b. marginal physical product
c. marginal cost
d. Wage
11. Which of the following IS a function of money?
a. medium of exchange
b. store of value
c. unit of accounting
d. all of the above
12. Which of the following is the most liquid?
a. a savings account
b. a 6 month CD
c. a home
d. Water
13. An increase in the money supply will cause interest rates to
a. rise
b. fall
c. remain unchanged
14. Who is the father of Economics ?
[A] Max Muller [B] Adam Smith [C] Karl Marx [D] None of these above
15. Nepal has followed the Mixed Economy (Capitalist+Communist)
16. Indicate below what is NOT a factor of production.
a) Labor
b) Capital
c) A bank loan
d) Land
17. Macroeconomics deals with:
a) Activities of individual units
b) Behaviour of firms
c) Economic aggregates
d) Behaviour of electronic industries
18. Microeconomics is not concerned with the behaviour of
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a) Industries
b) Firms
c) Aggregate demand
d) Consumers
19. The study of inflation is part of :
a) Descriptive economics
b) Macroeconomics
c) Normal economics
d) Microeconomics
20. Inflation is:
a) a decrease in the overall price level.
b) A decrease in the overall level of economic activity
c) an increase in the overall price level.
d) an increase in the overall level of economic activity
21. An example of an indirect tax is:
a) a tax on profits
b) inheritance tax
c) VAT
d) Income Tax
22. Privatisation is the transfer of:
a) government businesses to the private sector.
b) publicly held stock to private individuals.
c) corporately owned businesses to individuals.
d) privately owned businesses to the government sector
16. Formulas
a) Current Ratio:
Current Assets/Current Liabilities
b) Liquid/quick Ratio:
(Current Assets-Inventory-prepaid expenses)/Current Liabilities
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c) Account receivable Turnover ratio:
Net Sales/Account Receivable
d) Average Collection Period:
Account Receivable/Avg daily Credit sales
Or
Account Receivable*365 days/net Sales
e) Inventory turnover ratio:
Sales/Inventory
f) Fixed Asset Turnover Ratio:
Sales/Fixed Assets
g) Total Assets Turnover Ratio:
Sales/Total Assets
h) Net profit margin:
Net income/Sales
i) ROA:
Net income/Total Assets or net profit margin*total assets turnover
j) ROE:
Net income/Shareholders Equity
17. Which company has developed the software the EBL using currently? Infosys
18. NRB deputy governors: Mahaprasad Adhikari & Gopal Prasad Kafley
19. NRB governor: Chiranjibi Nepal from 22nd March 2015, 2071/12/08
20. Fixed Deposit Account is
(a) Cheque payable a/c (b) Term Deposit
(c) Non Interest bearing a/c (d) None of the above
21. Deposit Mix we mean
(a) Debt Equity Ratio (b) Composition of Deposit A/c
(c) CD Ratio (d) None of the above
22. The volume of money supply in the market is controlled with the help of:
(a) Fiscal Policy (b) Foreign Policy
(c) Monetary Policy (d) Credit Policy
CEO
23. By Account Payee Cheque, we mean
(a) Only Payable to the bearer (b) Only Payable to the drawer
(c) Only Payable to the account holder (d) Only Payable through bank a/c
24. What could be found in London, Dubai and Delhi. But no one can find it in America,
Japan and Germany?
-ONLY D
25. The sides of a triangle are in the ratio 3 : 5 : 7 and its perimeter is 30 cm. The length
of the greatest side of the triangle in cm is
(1) 6
(2) 10
(3) 14
(4) 16
26. . helps on fixation of repayment schedule & moratorium period.
a. Current Ratio b. DSCR c. DER d. TOL:TNW
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27. A bank Can
(a) Provide loan to its promoters (b) Provide loan against immovable property
(c) Provide loan against its own share (d) Provide loan against guarantee of its
28. The risk of loss arising while carrying out the regular activities of the bank is
categorized as:
(a) Credit risk (b) Market risk
(c) Operational risk (d) Normal risk
29. The internal rate of return (IRR) is 10%. If the company can obtain finance from the
bank at 12%, should the project be undertaken?
(a) Yes (b) IRR and bank rate doesnt matter
(c) No (d) None of the above
30. For a Bank, which look after the revision of interest rate/liquidity risk: ALCO
Committee.
31. On the recommendations of the Finance Manager, the board of directors will accept
the project if-----
J) ABBREVIATION
NBA: NON BANKING ASSESTS
NPL/NPA: NON PERFORMING LOAN/NON-PERFORMING ASSETS
DDA: DUE DILIGENCE AUDIT
CDD:CUSTOMER DUE DELIGENCE
FATF:FINANCIAL ACTION TAXK FORCE
PIN: PERSONAL INDENTIFICATION NUMBER
EBRD: EUROPEAN BANK FOR RECONSTRUCTION AD DEVELOPMENT
USAID: UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
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PCA : PROMPT CORRECTIVE ACTION
BCBS: THE BASEL COMMITTEE ON BANKING SUPERVISION
RWE: RISK WEIGHTED EXPOSURE
CRM: CREDIT RISK MITIGATION
FINO: FINANCIAL INFORMATION NETWORK AND OPERATION
DRS: DISASTER RECOVERY SITE
UCPDC: THE UNIFORM CUSTOM AND PRACTICES FOR DOCUMENTARY CREDITS
SWIFT: SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL
TELECOMMUNICATION
EPS: EARNING PER-SHARE
CAR: CAPTAL ADEQUACY RATIO
ATM: AUTOMATED TELLER MACHINE
EMI: EQUAL MONTHLY INSTALLMENT
FIU: FINANCIAL INTELIGENCE UNIT/FINANCIAL INFORMATION UNIT
RTGS: REAL TIME GROSS SETTLEMENT
SCT: SMART CHOICE TECHNOLOGY
KYC: KNOW YOUR CUSTOMER
ACU: ASIAN CLEARING UNION
BIBINI:BIDESI BINMAYA NIYAMAWAULI/NIYANRAN/NIYAM
FEER: FOREIGN EXCHANGE ENCASHMENT RECEIPT(B.B.N.:5)
ICC: INTERNATIONAL CHAMBER OF COMMERCE
MT: MESSAGE TEXT
ISBP: INTERNATIONAL STANBY PRACTISES
NPA/NPL: NONE PERFORMING LOAN /ASSESTS
NBA: NON BANKING ASSESTS
RWA: RISK WEIGHTAGE ASSESTS
SOL: SINGLE OBLIGER LIMIT
SLF: STANDING LIQUIDITY FACILITY
NAS:NATIONAL ACCOUNTING STANDARD
CIC: CREDIT INFORMATION CENTER
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DSCR: DEBT SEVICE COVERAGE RATIO
AML: ANTI MONEY LAUNDERING
IMF: INTERNATIONAL MONEYTORY FUND
MPBF: MAXIMUN PERMISSEABLE BANK FINANCE
UID: UNIQUE IDENTICATION NUMBER/UNIVERSAL INDENTIFIER
BIC: BANK INDENTIFIER CODE
IBAN: INTERNATIONAL BANK ACCOUNT NUMBER
CHIPS: CLEARING HOUSE INTER BANK PAYMENT SYSTEM
CHAPS: CLEARING HOUSE AUTOMATED PAYMENT SYSTEM
LIBID: LONDON INTERBANK BID RATE
LIBOR: LONDON INTERBANK OFFER RATE
MIBOR: MUMBAI INTERBANK OFFER RATE
FEDAN: FOREIGN EXCHANGE & MARKET DEALER ASSOCIATION OF NEPAL
NASDAQ:NATIONAL ASSOCIATION OF SECURITY DEALER AUTOMATED
QUOTATION
AER: ANNUAL EARNINGS RATE ON AN INVESTMENT.
APR: THE ANNUAL PERCENTAGE RATE OF INTEREST
ADR: AMERICAN DEPOSITORY RECEIPT.
ATS: AUTOMATIC TRANSFER SERVICE ACCOUNT
OTC: OVER THE COUNTER
UTC: UNDER THE COUNTER
BKE: BILATERAL KEY EXCHANGE
FOB: FREE ON BOARD
POS:POINT OF SALE
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