Public Service Commission conducted the examination for the post of Assistant Director of Nepal Rastra Bank (NRB) on 2081-02-17 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

Nepal Rastra Bank (NRB)

Administration Officer of the post of Assistant Director

Open competitive

Written Examination
Second Phase

Time 3 hours

Full Marks :100

Subject: Economic

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 public expenditure? Present the problems observed in public expenditure management in Nepal. (2+3=5)

2. Highlight the importance of foreign aid in Nepal’s development. (5)

3. Do you agree deficit financing is necessary for Nepal’s development? Give your arguments. (5)

4. What is economic growth? Explain its determinants. (2+3=5)

5. Explaining the relation between poverty and income inequality, outline the reasons for higher income inequality in Nepal. (2+3=5)

6. Analyze briefly about the impact of privatization of public enterprises in Nepal. (5)

7. Explain with the example how price is determined in a duopoly market. (5)

8. Explain the Deadweight Loss in the context of perfect competitive and monopoly market. (5)

9. With the help of an appropriate diagram, explain the impact on the market in different scenarios, when the government introduces the policy of price celling and minimum support price. (10)

Section “B” 50 Marks

10. Highlight the role of World Trade Organization in the development of international trade. (5)

11. Discuss monetary approach to balance of payments and its applicability in Nepal’s context. (10)

12. How do changes in fiscal and monetary policy interact in an economy? Explain it with the help of IS-LM model showing appropriate shifts in the diagram. (10)

13. Introduce expenditure approach, income approach and value added approach to measure GDP. Also, analyze the problems in GDP computation in Nepal and suggest practical solution. (10)

14. Coordination between monetary and fiscal policy is critical for economic growth and stability. However, the mandate of government which conducts fiscal policy may not always synchronize with that of the central bank which conducts monetary policy. In the above mentioned context, how would these policies be coordinated for economic growth and stability? Analyze with reference to Nepal. (15)

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