Economic Policies and Reforms Questions with Answers (Board Questions)
Group A: Very Short Answer Questions
1. (2023 Fall Q. No. 3, 2021 Spring Q. No. 2, 2020 Fall Q. No. 9) Mention any four methods of privatization.
Answer: Some important methods of privatization are as follows:
i. Assets sales
ii. Business sales
iii. Share sales
iv. Management contract
v. Lease assets
2. (2023 Fall Q. No. 8) Differentiate between monetary policy and fiscal policy.
Answer: The differences between monetary policy and fiscal policy are:
| Aspect | Monetary Policy | Fiscal Policy |
|---|---|---|
| Definition | Management of money supply and interest rates by the central bank. | Use of government spending and taxation to influence the economy. |
| Authority | Implemented by the central bank (e.g., Nepal Rastra Bank). | Determined by the government. |
3. (2023 Spring Q. No. 3, 2018 Spring Q. No. 3) Define the term Liberalization in brief.
Answer: Liberalization is when a government reduces rules and restrictions on businesses and the economy to allow for more freedom and competition. This means making it easier for people and companies to trade, invest, and operate without too much government control.
4. (2023 Spring Q. No. 7, 2021 Spring Q. No. 1) List down any three objectives of tourism policy in Nepal.
Answer: Some of the key indicators that can be used for environmental analysis are:
i. To develop tourism as an important sector of the national economy by developing linkages between tourism and other sectors.
ii. To improve the natural, cultural, and human environments of the nation to develop and expand the tourism industry.
iii. To develop and promote Nepal as an attractive tourism destination.
5. (2022 Fall Q. No. 2) What do you mean by Fiscal policy?
Answer: Fiscal policy refers to the use of government spending and taxation to influence a country’s economic activity. It is a key tool used by governments to manage economic fluctuations, promote economic growth, and achieve specific economic objectives.
6. (2022 Fall Q. No. 8) List out any four objectives of privatization policy of Nepal.
Answer: The objectives of privatization policy of Nepal are as follows:
i. To help the economy grow by spending money on things that create jobs and boost businesses.
ii. To plan how the government will earn money through taxes and other sources to pay for its activities.
iii. To raise cash through a share of the equity sale.
iv. To reduce the operating deficit of the government.
7. (2019 Fall Q. No. 2) Explain the meaning of the duty-free drawback facility.
Answer: The duty-free drawback facility is a program that lets exporters get back the customs duties they paid on imported goods that they later export. This helps lower costs for exporters and encourages them to sell their products in other countries.
8. (2019 Fall Q. No. 10) State two economic and monetary targets of current Monetary Policy of Nepal.
Answer: The economic and monetary targets of current monetary policy of Nepal are:
i. The NRB aims to maintain inflation within a target of 5.0% for the fiscal year 2024/25.
ii. The BoP is projected to remain in surplus, supporting overall economic stability.
iii. The restriction on opening new BFIs is continued.
9. (2019 Spring Q. No. 2) Explain the meaning of single print center.
Answer: A single print center is a one-stop place where one can print things. They offer many services, like printing documents, photos, posters, and even large signs. One can also get help with design for things like brochures and business cards.
10. (2019 Spring Q. No. 8) Enlist the five provisions of current monetary policy of Nepal.
Answer: The major provisions of current monetary policy of Nepal are as follows:
i. Inflation to be restricted to 5%.
ii. CRR and SLR increased.
iii. Restricted credit expansion.
iv. Additional limit on the margin nature loans against the collateral of shares removed.
v. No restriction on share transactions of merging banks.
11. (2018 Spring Q. No. 7) What are the different types of economic policies?
Answer: The different types of economic policies are as follows:
i. Monetary Policy
ii. Fiscal Policy
iii. Industrial Policy
iv. Foreign Investment Policy
v. Privatization Policy
12. (2018 Fall Q. No. 3, 2018 Fall Q. No. 6) Write the vision of Industrial Policy, 2010.
Answer: The vision of Industrial Policy, 2010 is to make remarkable contributions to the national economy through sustainable and broad-based industrial development in an effective, coordinated, and collaborative partnership of public, private, and cooperative sectors thereby supporting poverty alleviation.
13. (2018 Fall Q. No. 5) Define monetary policy.
Answer: Monetary policy is the process by which a central bank or monetary authority manages the supply of money, interest rates, and credit in an economy to achieve specific economic objectives. These objectives typically include controlling inflation, managing employment levels, stabilizing the currency, and fostering economic growth.
14. (2017 Fall Q. No. 4) Define the meaning of one window policy.
Answer: The “One Window Policy” is a system that makes trade processes easier for businesses. It provides a single place for businesses to go to when they need help with import and export procedures from government agencies.
Group B: Descriptive Answer Questions
1. (2023 Fall Q. No. 15, 2018 Fall Q. No. 16) Define Privatization. Explain the privatization policy and practices in Nepal. – Answer (Click Here)
2. (2023 Spring Q. No. 15) Economic liberalization plays a vital role for enhancing the financial and capital market sectors of Nepal. Analyze with your views. – Answer (Click Here)
3. (2021 Spring Q. No. 11) Economic reform was considered the remarkable decision to take Nepalese economy at the current scale. What are the impacts of reform decisions taken in 1990’s? Explain. – Answer (Click Here)
4. (2021 Spring Q. No. 12) Why remittance is called as a backbone of the Nepalese economy? And, what are the upcoming challenges in the Nepalese remittance economy due to the Russia-Ukraine war? – Answer (Click Here)
5. (2021 Spring Q. No. 13) Prepare a descriptive SWOT analysis of the tourism sector of Nepal and write down the contributions made by the tourism industry in the employment and labor force. – Answer (Click Here)
6. (2018 Spring Q. No. 12) Explain the different forms of privatization in Nepal. How do you see the effect of a privatization country like Nepal? Explain. – Answer (Click Here)
7. What is privatization? Explain the role of private sectors in economic development of Nepal, according to privatization policy. – Answer (Click Here)
Click Here: Business Environment in Nepal Questions With Answers