Most Important MCQs for Banking Entry-Level Candidates

Most Important MCQs for Banking Entry-Level Candidates

1. What is the minimum paid-up capital requirement for Commercial Banks (Class

A) as per NRB Unified Directives 2081/82?

A) NPR 5 billion

B) NPR 6 billion

C) NPR 8 billion ✓

D) NPR 10 billion

2. Nepal Rastra Bank was established under which Act?

A) NRB Act, 2007

B) NRB Act, 2058 ✓

C) BAFIA, 2073

D) Company Act, 2063

3. BAFIA 2073 classifies BFIs into how many categories?

A) 3 categories

B) 4 categories ✓

C) 5 categories

D) 6 categories

4. Which institution has the sole authority to issue currency notes in Nepal?

A) Ministry of Finance

B) Nepal Government

C) Nepal Rastra Bank ✓

D) Commercial Banks

5. What is the current Cash Reserve Ratio (CRR) for Commercial Banks?

A) 3%

B) 4% ✓

C) 5%

D) 6%

6. Statutory Liquidity Ratio (SLR) for Commercial Banks is currently:

A) 10%

B) 12% ✓

C) 15%

D) 18%

7. The main objective of Nepal Rastra Bank is:

A) Profit maximization

B) Maintaining price stability ✓

C) Government financing

D) Foreign exchange trading

8. Development Banks in Nepal fall under which category?

A) Class A

B) Class B ✓

C) Class C

D) Class D

9. Minimum Capital Adequacy Ratio (CAR) for Commercial Banks including buffer

is:

A) 10%

B) 11.5%

C) 12.5% ✓

D) 15%

10. Maximum single borrower limit for Commercial Banks is:

A) 20% of core capital

B) 25% of core capital ✓

C) 30% of core capital

D) 35% of core capital

11. CCD Ratio limit for Commercial Banks is:

A) 80%

B) 85% ✓

C) 90%

D) 95%

12. Minimum paid-up capital for national level Development Banks is:

A) NPR 1 billion

B) NPR 1.6 billion ✓

C) NPR 2 billion

D) NPR 2.5 billion

13. Primary function of Development Banks is:

A) Short-term consumer loans

B) Medium to long-term project financing ✓

C) Microcredit only

D) Foreign exchange dealing

14. Which Act regulates establishment of BFIs in Nepal?

A) Company Act, 2063

B) BAFIA, 2073 ✓

C) NRB Act, 2058

D) Contract Act, 2056

15. Deposit Insurance coverage limit per depositor per bank is:

A) NPR 300,000

B) NPR 400,000

C) NPR 500,000 ✓

D) NPR 600,000

16. Credit Information Bureau in Nepal is managed by:

A) Nepal Rastra Bank

B) Ministry of Finance

C) Credit Information Bureau Limited ✓

D) Commercial Banks Association

17. Maximum tenure for fixed deposits in Nepalese banks is:

A) 5 years

B) 7 years

C) 10 years ✓

D) 15 years

18. Deprived sector lending requirement for Commercial Banks is:

A) 3%

B) 4%

C) 5% ✓

D) 6%

19. Priority sector lending does NOT include:

A) Agriculture

B) Energy projects

C) Luxury housing ✓

D) Tourism

20. Which is NOT a function of NRB?

A) Monetary policy formulation

B) Bank supervision

C) Direct lending to public ✓

D) Foreign exchange management