Public Service Commission
Nepal Bank Ltd.
Asst. 4th Level Exam 2080
Competitive Written Exam Held on 2080-11-11
Time: 2 hours 30 Min
FM: 100
Paper: First
Subject: Economy, Banking and Accounting
Answer the following questions.
The answer to each section should be written in a separate answer book. Otherwise the answer sheet will be cancelled.
Section -A 50 Marks
- What is economic development? Write the challenges of economic development of Nepal. 4+6=10
- What are the major features of Industrial and Commercial Policies of Nepal? Explain. 5+5=10
- Describe the main functions of commercial banks as per Banks and Financial Institutions Act, 2073, 10
- What are the provisions on formation of board of directors and appointment of Governor as per Nepal Rastra Bank Act, 2058? Describe. 5+5=10
- Distinguish between monetary policy and fiscal policy. What are the main objectives of monetary policy in Nepal? Describe. 5+5=10
Section -B 50 Marks
- What are the various risks associated with banks and financial institutions in Nepal? Also, describe the measures to mitigate those risks. 5+5=10
- What is Cost-Volume-Profit analysis? Why is it important to a bank? Explain. 5+5=10
- What is the difference between book keeping and accounting? How do they help in decision making and determining financial position? Describe. 5+5=10
- Distinguish between internal and external audit. Also, highlight the importance of auditing in the bank. 5+5=10
- Prepare the journal entries of the following transactions: 5×2=10
a) Outstanding salary is Rs. 1000.
b) Advance payment of rent is done for Rs. 50,000.
c) Furniture is depreciated by Rs. 10,000.
d) Drawing of Rs. 20,000 from the business.
e) Interest received on investment is Rs. 1000.
-The End –
