Public Service Commission conducted the examination for the post of Loan Officer of Krishi Bikas Bank Ltd. (ADBL) on 2081-03-23 B.S. The questions asked in that examination are presented here for information. I hope this old question will help you in preparation.

Public Service Commission
Krishi Bikas Bank Limited,

Technical, Sixth, Open Competitive Written Examination for the post of Loan Officer


Time 3 hours

Subject: Law, Banking Management and Finance

Answers to each section should be written in a separate answer sheet. Otherwise the answer sheet will be cancelled.

Section “A” 50 Marks

1. What is money laundering? According to the Money Laundering (Money Laundering) Prevention Act, 2064, what actions are considered to be money laundering? make it clear 1+4=5

2. What is meant by operational risk? What are the main operational risks faced in the banking sector? Discuss. 1+4=5

3. What is meant by Bank Guarantee? Under what conditions are Bid-Bond, Performance Bond and Advance Payment Guarantee issued by the bank? Describe 2+3=5

4. What is financial literacy? Why is it necessary to inform bank customers about financial literacy? make it clear 2+3=5

5. Integrated Directive issued by Nepal Rastra Bank to licensed banks and financial institutions, Directive, 2080 of 2 and 3, what kind of policy arrangements have been tried to control the credit risk of the financial system? Discuss. 10

6. What arrangements have the Government of Nepal and the Nepal Rastra Bank made to make Krishi Bikas Bank Limited the leading bank for loans in the agricultural sector? In this context, what kind of opportunities and challenges do you see in front of Krishi Bikas Bank Limited? Consider. 3+7=10

7. Present the outline of Krishi Bikas Bank Limited‘s strategic plan 2081-2086. 10

Section “B” 50 Marks

8. Describe the concept of GDP. How can we measure the country’s GDP? 2+3=5

9. Highlight the differences between monitoring and evaluation of project. How can evaluation-feedback mechanism be an important tool for further improvement? 3+2=5

10. Describe the broader objectives of Monetary Policy. Which one is an effective monetary policy tool in the Nepali context and why? Explain. 2+3=5

11. Discuss why Core Banking System (CBS) is important in banking sector. What are the likely risks associated with this system? Describe. 2+3=5

12. Discuss the key principles of management. How are they useful in managing an organization? Explain. 4+6=10

13. Why is a job description important? How is it linked to performance appraisal and training? Explain.

14. Define the terms strategic planning and contingency planning. What are the main differences between these two? Explain. 2+2+6=10

—The End—

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