Nepal Rastra Bank

Quiz By:Admin

29/11/2024

Nepal Rastra Bank

25 minutes

Which of the following tools is NOT part of monetary policy?

Open Market Operations

Discount Rate

Taxation Policy

Reserve Requirements

Correct Answer: optionC

Explanation will be available after submitting the quiz.

Which component is NOT included in the calculation of GDP using the expenditure approach?

Consumption

Investment

Net Exports

Transfer Payments

Correct Answer: optionD

Explanation will be available after submitting the quiz.

What is the primary objective of the Central Bank of Nepal?

Maximizing government revenue

Controlling inflation and ensuring financial stability

Providing loans to the public

Setting fiscal policy

Correct Answer: optionB

Explanation will be available after submitting the quiz.

Which of the following is the largest component of aggregate demand in most economies, including Nepal?

Consumption

Investment

Government Spending

Net Exports

Correct Answer: optionA

Explanation will be available after submitting the quiz.

What happens to the money supply when the Central Bank conducts an expansionary monetary policy?

It increases

It decreases

It remains unchanged

It depends on fiscal policy

Correct Answer: optionA

Explanation will be available after submitting the quiz.

If the nominal GDP of Nepal is NPR 15 trillion and the GDP deflator is 150, what is the real GDP?

NPR 10 trillion.

NPR 7 trillion.

NPR 5 trillion.

NPR 2.5 trillion.

Correct Answer: optionA

Explanation: Real GDP = Nominal GDP / (GDP Deflator / 100) = 15 trillion / (150 / 100) = NPR 10 trillion.

Explanation will be available after submitting the quiz.

If the money supply is NPR 1 trillion and the velocity of money is 5, what is the nominal GDP according to the quantity theory of money?

NPR 10 trillion

NPR 7.5 trillion

NPR 5 trillion

NPR 2.5 trillion

Correct Answer: optionC

Explanation: Nominal GDP = Money Supply × Velocity = 1 trillion × 5 = NPR 5 trillion.

Explanation will be available after submitting the quiz.

What is the primary measure of inflation used by Nepal Rastra Bank?

Wholesale Price Index (WPI)

Consumer Price Index (CPI)

Producer Price Index (PPI)

GDP Deflator

Correct Answer: optionB

Explanation will be available after submitting the quiz.

Which of the following factors directly affects the exchange rate in Nepal?

Government budget surplus

Remittances inflow

Natural resource exports

Population growth

Correct Answer: optionB

Explanation will be available after submitting the quiz.

10.

What does an inverted yield curve typically indicate?

Economic expansion

Impending recession

High inflation

Stabilized interest rates

Correct Answer: optionB

Explanation will be available after submitting the quiz.

11.

Which of the following is a liability on the balance sheet of Nepal Rastra Bank?

Foreign exchange reserves

Currency in circulation

Government securities

Gold reserves

Correct Answer: optionB

Explanation will be available after submitting the quiz.

12.

Which sector contributes the most to Nepal’s GDP?

Agriculture

Industry

Services

Remittances

Correct Answer: optionC

Explanation will be available after submitting the quiz.

13.

The unemployment rate is calculated as the percentage of unemployed individuals in the ________.

land

labor

capital

overhead

Correct Answer: optionC

Explanation will be available after submitting the quiz.

14.

Nepal's monetary policy is primarily aimed at controlling ________ and maintaining financial stability.

inflation

interest

unemployement

none

Correct Answer: optionA

Explanation will be available after submitting the quiz.

15.

If Nepal's nominal GDP grows by 12% and inflation is 5%, what is the real GDP growth rate?

10%

Correct Answer: optionA

Explanation will be available after submitting the quiz.

16.

Nepal's trade deficit is NPR 1 trillion, and remittances inflow is NPR 1.5 trillion. What is the net impact on the current account balance?

NPR 0.5 trillion (Surplus)

NPR 0.5 trillion (Deficit)

NPR 5 trillion (Surplus)

NPR 5 trillion (Deficit).

Correct Answer: optionA

Explanation will be available after submitting the quiz.

17.

Which of the following is NOT a macroeconomic goal?

Economic growth

Price stability

Full employment

Profit maximization

Correct Answer: optionD

Explanation will be available after submitting the quiz.

18.

What does the Phillips Curve illustrate?

Relationship between inflation and unemployment

Relationship between GDP and interest rates

Relationship between government spending and taxes

Relationship between money supply and price level

Correct Answer: optionA

Explanation will be available after submitting the quiz.

19.

What type of monetary policy does the Central Bank use to combat inflation?

Expansionary monetary policy

Contractionary monetary policy

Neutral monetary policy

Unconventional monetary policy

Correct Answer: optionB

Explanation will be available after submitting the quiz.

20.

What is the main instrument of fiscal policy?

Open market operations

Taxation and government spending

Reserve requirements

Exchange rate management

Correct Answer: optionB

Explanation will be available after submitting the quiz.

21.

If the Central Bank decreases the repo rate, what is the likely impact?

Increase in borrowing and investment

Decrease in borrowing and investment

Increase in foreign reserves

Decrease in money supply

Correct Answer: optionA

Explanation will be available after submitting the quiz.

22.

Which of the following is a leakage in the circular flow of income?

Investment

Exports

Savings

Government spending

Correct Answer: optionC

Explanation will be available after submitting the quiz.

23.