Free Practice Questions for NRB Assistant Director

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Key Facts: NRB Assistant Director Exam

100 MCQs

Stage 1 objective pre-qualification questions

NRB Assistant Director Syllabus (2080/05/07)

90 min

Time duration for Stage 1 pre-qualification exam

NRB Assistant Director Syllabus (2080/05/07)

40 / 100

Qualifying mark for Stage 1 and each Stage 2 paper

NRB Assistant Director Syllabus (2080/05/07)

20%

Negative marking per incorrect answer in Stage 1

NRB Assistant Director Syllabus (2080/05/07)

NPR 1,000

Application fee for open category

NRB Vacancy Notice (2082/08/19)

21-35

Age eligibility (up to 40 for female candidates)

NRB Vacancy Notice (2082/08/19)

The NRB Assistant Director examination begins with a 100-MCQ pre-qualification screening test (90 minutes, 20% negative marking, pass mark 40), followed by three 100-mark written papers and an interview. Minimum qualification is a Master's degree in Economics, Management, or Public Administration. The application fee is NPR 1,000.

Sample NRB Assistant Director Practice Questions

Try these sample questions to review concepts for the NRB Assistant Director exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1When the price elasticity of demand for a financial product is unitary (|Ed| = 1), how does a 5 percent increase in price affect the total revenue of the institution selling it?

A.Total revenue stays the same

B.Total revenue rises by about 5 percent

C.Total revenue falls by about 5 percent

D.Total revenue rises by about 10 percent

Explanation: With unit-elastic demand, the percentage fall in quantity demanded exactly offsets the percentage rise in price. A 5 percent price increase is matched by roughly a 5 percent fall in quantity, so total revenue (price x quantity) is unchanged.

2Which condition describes the long-run equilibrium of a firm in a perfectly competitive market?

A.Price = Marginal Cost = Average Variable Cost, with positive economic profit

B.Price > Marginal Cost = Average Total Cost, allowing supernormal profit

C.Price = Marginal Cost = minimum Average Total Cost, with zero economic profit

D.Price = Marginal Revenue > Marginal Cost, with an economic loss

Explanation: Free entry and exit push economic profit to zero in the long run. Each firm produces where price equals marginal revenue, marginal cost and the minimum point of its average total cost curve, so it earns only normal profit.

3In consumer choice theory, what does the slope of an indifference curve measure at any point?

A.The marginal rate of technical substitution (MRTS)

B.The ratio of the prices of the two goods

C.The elasticity of substitution between capital and labor

D.The marginal rate of substitution (MRS) between the two goods

Explanation: The slope of an indifference curve is the marginal rate of substitution: the amount of one good a consumer is willing to give up for one more unit of the other while keeping utility constant.

4An oligopolist believes rivals will match any price cut but ignore any price increase, as assumed in Paul Sweezy's kinked demand curve model. What does the model predict about its price?

A.It changes frequently whenever production costs change

B.It tends to stay unchanged even if marginal cost shifts within a range

C.It rises steadily toward the joint-profit-maximizing monopoly price

D.It falls to marginal cost, as in perfect competition

Explanation: Above the current price, demand is elastic because rivals do not follow an increase; below it, demand is inelastic because rivals match a cut. The kink creates a vertical gap in the marginal revenue curve, so marginal cost can shift within that gap without changing the profit-maximizing price, which therefore stays rigid.

5A production function shows constant returns to scale (CRS) if doubling all inputs has which effect on output?

A.Output more than doubles

B.Output less than doubles

C.Output exactly doubles

D.Output doubles only if input prices stay constant

Explanation: Under constant returns to scale, a proportional increase in all inputs raises output by the same proportion. Doubling every input therefore exactly doubles output.

6In microeconomics, what distinguishes a Giffen good from an ordinary inferior good?

A.An inferior good has an upward-sloping demand curve, whereas a Giffen good obeys the law of demand

B.A Giffen good has a positive income elasticity strong enough to outweigh the substitution effect

C.A Giffen good is bought in larger amounts because its high price signals social status

D.A Giffen good is an inferior good whose income effect outweighs its substitution effect

Explanation: Every Giffen good is inferior, but not every inferior good is Giffen. For a Giffen good, the income effect of a price rise (which pushes consumption up because the good is inferior) is strong enough to overpower the substitution effect, so quantity demanded rises with price.

7What is the deadweight loss created by a profit-maximizing monopolist?

A.The net loss of total surplus from producing below the socially optimal output

B.The consumer surplus transferred to the monopolist as extra profit through higher prices

C.The fixed costs the monopolist incurs before production begins

D.The economic profit the monopolist earns above normal profit

Explanation: A monopolist restricts output to where MR = MC and charges a price above marginal cost. Trades that consumers value above their cost no longer happen, and the surplus they would have created is lost to everyone; that lost surplus is the deadweight loss.

8In a simultaneous-move, two-player game, what is a Nash equilibrium?

A.An outcome in which both players earn the highest payoffs available in the game

B.An outcome reached when the players sign a binding agreement to cooperate

C.A pair of strategies from which neither player can gain by deviating alone

D.An outcome in which each player is using a strictly dominant strategy

Explanation: In a Nash equilibrium each player's strategy is a best response to the other's. Given what the other player is doing, neither can improve their payoff by changing strategy unilaterally.

9Which item is added to Gross Domestic Product (GDP) at market prices to obtain Gross National Product (GNP)?

A.Net indirect taxes

B.Net factor income from abroad (NFIA)

C.Depreciation (consumption of fixed capital)

D.Gross capital formation

Explanation: GNP measures income earned by a country's residents wherever it is produced. It equals GDP plus net factor income from abroad: GNP = GDP + NFIA.

10If nominal GDP is NPR 5,500 billion and real GDP is NPR 5,000 billion in a fiscal year, what is the GDP deflator?

A.90.9

B.105.0

C.100.0

D.110.0

Explanation: GDP deflator = (Nominal GDP / Real GDP) x 100 = (5,500 / 5,000) x 100 = 110.0. Prices have risen by 10 percent relative to the base year.

About the NRB Assistant Director Exam

Nepal Rastra Bank recruits Assistant Directors (Officer Third Class) in the Administration Service through open competition under the revised syllabus approved on 2080/05/07. Candidates undergo a competitive Stage 1 pre-qualification objective test (100 MCQs), followed by Stage 2 subjective written papers and a Stage 3 interview. This question bank is independent practice by OpenExamPrep: an English-language MCQ study adaptation designed for Stage 1 preparation and conceptual mastery; it does not simulate the subjective written papers, which are set in both Nepali and English.

Exam sponsor: Nepal Rastra Bank; the Public Service Commission conducts the pre-qualification and written examinations in Kathmandu, and NRB's central office holds the interview. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Stage 1 pre-qualification comprises 100 objective MCQs covering Economics, Trade & Industry (30), Banking & Finance (30), Basic Mathematics & Statistics (20), and General Knowledge & ICT skills (20). Marks scored in Stage 1 serve only as a qualifying filter and are not carried forward. Qualifying candidates sit Stage 2 written examination with Paper I (Economics, 100 marks), Paper II (Management, 100 marks), and Paper III (Research Methodology 50, ICT 25, Banking Laws 25). Stage 3 is an oral interview carrying 40 marks.

Time Limit

90 minutes (Stage 1 pre-qualification); 3 hours per Stage 2 written paper

Passing Score

40 out of 100 in Stage 1; 40 out of 100 in each Stage 2 written paper

Exam / Certification Fees

NPR 1,000 (plus NPR 400 per additional inclusive group)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

NRB Open Competition Syllabus for Assistant Director (Administration Service, approved 2080/05/07) · Source checked 2026-10-05
NRB Online Recruitment Portal · Source checked 2026-10-05
Nepal Rastra Bank Act, 2058 (Consolidated English Text) · Source checked 2026-10-05
Bank and Financial Institution Act, 2073 (NRB English translation) · Source checked 2026-10-05
NRB Unified Directive 2082 for Class A, B and C institutions · Source checked 2026-10-05

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Economics, Trade and Industry

Micro- and macroeconomic concepts; the Nepalese economy, trade structure, balance of payments, exchange rate, remittance and public debt; industry and business structure, foreign aid, economic laws, development plans and public policies.

30%

Banking and Finance

Nepal's banking system, Nepal Rastra Bank, and banking and finance laws and policies; interest rates; financial ratios, sources of finance and the balance sheet; money and capital markets.

20%

Basic Mathematics and Statistics

Arithmetic, percentages, ratio, profit and loss, probability, permutation and combination, sets, algebra, matrices, derivatives and integration, geometry, linear programming, and statistics including dispersion, index numbers, correlation, regression and sampling.

20%

General Knowledge and ICT Skills

Current national and international economic, social, political, legal, scientific, business, geographic, historical and climate-change affairs, plus ICT basics: operating systems, office packages, internet, intranet, email and websites.

Preparing for the NRB Assistant Director Exam

What You Need to Know

Passing score: 40 out of 100 in Stage 1; 40 out of 100 in each Stage 2 written paper
Assessment: Stage 1 pre-qualification comprises 100 objective MCQs covering Economics, Trade & Industry (30), Banking & Finance (30), Basic Mathematics & Statistics (20), and General Knowledge & ICT skills (20). Marks scored in Stage 1 serve only as a qualifying filter and are not carried forward. Qualifying candidates sit Stage 2 written examination with Paper I (Economics, 100 marks), Paper II (Management, 100 marks), and Paper III (Research Methodology 50, ICT 25, Banking Laws 25). Stage 3 is an oral interview carrying 40 marks.
Time limit: 90 minutes (Stage 1 pre-qualification); 3 hours per Stage 2 written paper
Exam / certification fees: NPR 1,000 (plus NPR 400 per additional inclusive group) Official sources

Using Our Practice Resources

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NRB Assistant Director: Suggested Study Strategy

1Master the NRB Act 2058 and BAFIA 2073: know key sections on NRB's governance, objectives, board constitution, and BFI regulatory classifications.

2Understand current monetary policy instruments used by NRB, including the Interest Rate Corridor, Standing Liquidity Facility (SLF), and Standing Deposit Facility (SDF).

3Practice quantitative questions such as compound interest, combinations, regression coefficients and ratio analysis by hand; calculators are not allowed in the objective pre-qualification test.

4Review the Constitution of Nepal, specifically fundamental rights, directive principles of state policy, and distribution of powers between federal, provincial, and local levels.

5Keep track of 20% negative marking during the 100-MCQ pre-qualification stage: avoid blind guessing on questions where multiple options remain uneliminated.

Frequently Asked Questions

What is the examination scheme for the NRB Assistant Director position?

The examination comprises three stages: Stage 1 is an objective pre-qualification test of 100 MCQs (100 marks, 90 minutes, pass mark 40, 20% negative deduction). Stage 2 consists of three subjective written papers of 100 marks each (Economics, Management, and Research/ICT/Laws). Stage 3 is an oral interview carrying 40 marks.

Do Stage 1 pre-qualification marks count towards the final merit list?

No. Under the official syllabus approved on 2080/05/07, Stage 1 marks are purely for screening candidates to qualify for the Stage 2 written examination. The final merit ranking is determined strictly on the combined scores of Stage 2 written papers (300 marks) and Stage 3 interview (40 marks).

What is the educational qualification required to apply?

Candidates applying for the general Administration Service Assistant Director post must hold a Master's degree in Economics, Management, or Public Administration from an accredited university recognized by the government of Nepal.

What are the official assessment languages for the NRB examination?

The question papers are set in both Nepali and English. Candidates are permitted to write their responses in Nepali, English, or a combination of both languages. This practice bank is an English-language study adaptation.

Is this question bank an official NRB practice test?

No. This question bank provides independent study practice created by OpenExamPrep. It is an English-language MCQ study adaptation reflecting the curriculum outlined in the official NRB 2080 syllabus.