A Complete Solution To SEE: Unit: 8 Economic Activities Lesson: Economic Planning

A complete solution to SEE
Unit: 8 Economic activities Lesson: Economic planning

Very Short questions
1. What is economic planning?

 A document that has certain targets of development of various sectors of a country by
maximum uses of resources that should be achieved within a specific time frame.
2. Define current plan
 Any activity with specified planning that is undergoing at present time and is to be
completed within the mentioned duration and resources
3. Which plan is operational in Nepal?
 14th Plan (2073/074-2075/076)- Begins at 2073/074 and ends at 2075/076.
4. When did the first economic plan start in the world? Which country started it?
 Union of soviet Socialist Republic (USSR), 1928 A.D.
5. What is the Vision of the current plan?
 To make Nepalese economy Independent, prosperous and Socialism oriented
6. What is the Goal of the current plan?
 Make Nepal a middle income country and public welfare state with social justice
7. What is the objective of the current plan?
 To alleviate property through high economic growth
8. Target of 14th plan
 Expected Economic growth- 7.20%
Expected life expectancy- 72 years (now it is 71 years)
Expected Electricity generation- 2279 MW
Expected poverty line- 17.60% (now it is 21.60%)
9. What is National planning commission?
 It is an apex advisory body of the government of Nepal for formulating periodic plan and
national vision for the overall development of the nation.
10. When was National planning commission established?
 2029 B.S.
11. When was first five year plan launched in Nepal?
 2013 B.S.
12. What is developmental plan?
 Planned development is an organized, conscious and continual attempt to select the best
available alternative to achieve a specific goal.
13. Mention any one challenge and one prospect of current 14th plan.
 The major challenge is to construct and develop physical infrastructure
The major opportunity is that the healthy and educated manpower is being developed.
14. What is economic holiday?
 State of not having any economic plan in the nation due to any political, economical or
natural difficulties
15. Write any two characteristics of economic planning.
 It is periodic designed for certain time
It has definite goals and budget
16. By when Nepal has envisioned itself to promote from least developed country to developing
country?
 By 2022 A.D.
17. Who is the Chair person of the National planning commission?
 The prime minister is the chair person of the National planning commission.
1 Social Studies Manual Grade 10 Economic Activities

Short questions
1. Mention the need and importance of economic planning.

 Planning is just a program of action and its not a guarantee for action. But still, a country
can gain enormous if economic plans and formulated and implemented effectively.
 To achieve higher rate of economic growth and greater degree of economic equality
 Fuller employment opportunity for the growing labor force
 Creates larger provision for capital formation
 Maximum utilization of means and resources
 Helps to minimize the cost of development
2. What are the characteristics and priorities of the current economic plan?
 The 14th three year periodic plan is effective from 2073/074 with the following
characteristics
 It has a set target of achieving 7 % economic growth rate
 Principle of social justice and poverty reduction is highlighted
 It aims to support the government in achieving all the sustainable development goals
by 2030
 It embarks to uplift Nepal to a middle income country
3. Most of the 5 year planning couldn’t get targeted achievements till now. What should be
done to make it more effective?
 Nepal started planned Development more than 60 years ago. Currently, we are set to
implement the 15th periodic development plan. But most periodic plans have failed in
Nepal
The main reasons for the unsuccessful of periodic plans in Nepal are:
 Vague and ambitious plans with unrealistic time frames and tasks
 Underdeveloped institutions for enterprise and development
 Centralized government, Wide spread corruption poor governance
 Imperfection in the authority of the government and unstable political system
 Dependence on foreign aid
 Centralized planning nit not personalized and planning is done on the basis of the
election constituencies
 Lack of sufficient resources, skilled manpower and organizational support
 High gap of plan formulation and implementation
The capacity to implement plans in Nepal is very poor, characterized by starkly low utilization of the
resources. This has resulted in diminished outcomes in building infrastructure critically needed for the
development of the country. The following things should be done to make the plans more effectively
 Achievable plans should be made according to the capability of the country

 Plans should focus on fulfilling the basic needs of the people first
 Priority should be given to utilize the available natural and human resources
 Reliable statistical data should be used
 The objective should be definite and laid down in an order of priority
 Administrative mechanism with high degree of efficiency and honesty.
 There should be mechanism and process to strike a linkage between the country’s needs and
development planning so that appropriate projects are identified and selected.
4. Normally economic plans are devised for 5 years. But why some plans they are devised
for 3 years in Nepal?
 Some economic plans are devised for 3 years in Nepal because:

 Country experienced a radical political change

 Country was in transition period
 Political instability and lack of clear majority by any political parties
 Provision of interim government and interim constitution
5. Mention any four problems that can arise while making a plan.
 The following problems may arise while making a plan
 Political pressure may influence the plan and thus development process
 Political instability hampers the implementation of plan
 Social and racial conflicts invite problems while making a plan
 Unequal distribution of natural resources creates difficulties in making a plan
 Accurate statistical data may be unavailable
Long questions
1. What are the opportunities, challenges and strategies of current 14 th periodic plan?
 In a least developed country like Nepal, economic planning is deployed as a tool for
eliminating poverty, reducing inequality and lowering unemployment. The same is
the case is with the 14th plan.
 The opportunities of current periodic plan are:
 There is political stability with the newly framed Constitution of Nepal 2072
 Healthy and educated man power is being developed
 Half of the economically active population is associated to co operative and
community system
 Non -resident Nepali are being attracted to the investment in Nepal
 Skills and remittance received from foreign employment has helped to mobilize
technology and capital
The strategies adopted by the 14th plan are:
 Increase production through transformation of agriculture sector, expansion of
tourism, industry and small and cottage business
 Build infrastructure of developing energy, road and air transportation, information
and communication
 Sustainable human development reform by emphasizing social development, social
security and social protection
 Promotion of overall good governance through economic, social and administrative
reforms, fair, transparent and people friendly public service
 Maximum utilization of science and technology, gender equality, inclusion,
environment protection etc.
The challenges of the 14th plan are given below
 To make administration accountable and effective by building capacity for
development
 Complete the work of restricting the state rapidly
 Strengthen implementation of central plans and policies by elected representative for
state and local level leadership
 To construct and develop physical infrastructure, interlink rural and urban
development as a source of economic growth
 To create employment opportunities by expanding economic sectors and make
maximum utilization of human resources

2. The current 14th economic plan aims to transform Nepal into a developing country from
the least developed country by 2022. Keeping in mind the past experiences and ongoing
political situation, how optimistic are you and what are your suggestions?
 Till now 14th plans have been implemented in Nepal till now. These all plans were
board and ambitious and the long term plan envisages traditional pathway, lacks
timely implementation to achieve the set targets. I doubt Nepal will be able to
achieve the target of 14th plan to develop Nepal as a developing country.
 The world is confronted with the emergence of new knowledge economy and
dynamism of socio economic transformation which Nepal has failed to address.
Nepal should address this problem.
 State run big priority projects are not contributing to economic sustainability because
of escalating costs, poor monitoring and implementation delays. They should be
completed on time.
 Nepal is facing a serious challenge from importing foods from India. This concern
should be a primary consideration for development planners.
 New economic opportunities are limited in Nepal. Nepal should explore new
opportunities for economic collaborations with dominant economies of the world for
greater access of Nepali niche products in the world market and develop world class
physical infrastructure to reduce the transportation costs.
 Nepal is reliant on remittance based economy. Nepal should develop a market based
economy and create conducive political environment for investment.
 Poor governance and political instability is haunting Nepal from decades. Nepal
should implement effective anti- corruption measures and improve quality of
education, human resource and scientific and technological capability.
 Achieving sustainable development goals are a huge challenge for Nepal. It is equally
important to invest in health care system and strive for social development and
equality and improving people’s quality of life.

Unit : 8 Economic activities Lesson: Tourism- Importance and probability
1. What kind of vision has the current plan devised for the development of tourism
industry in Nepal?
 The current plan has devised to develop Nepal as one of the best tourist destination in
the world.
2. What is hiking?
 Hiking is a long vigorous walk usually on trails in the country side
3. What is the Great Himalayan Trail?
 It is one of the longest ad highest footpaths on earth that is extended from east to west
of Nepal in the shadows of the world’s highest peaks.
4. Name popular tourist destination of Eastern Nepal that fall on The Great
Himalayan Trail.
 Kanchenjunga Conservation Area, Makalu Barun National Park and Sagarmatha
National Park
5. What is ecotourism?
 It is the responsible travel to natural areas that conserves the environment, sustains
the well-being of the local people and involves interpretation and education.
6. What is rural tourism?
 It is a form of tourism that showcases the rural life, art, culture, heritage at rural areas
which benefits the local community socially and economically
7. What is adventure tourism?
 It is an exploration with some potential for physical danger such as skydiving,
rafting, bungee jumping, paragliding etc.
8. How is 2020 going to be observed?
 It is going to be observed as Nepal visit year
9. What is the aim of Rara Karnali Visit year 2075?
 To increase more than 1.5 lakh tourists in the main tourist destination Rara in 2075
10. Write any one feature of Rara Lake.
 Changes color according to the season.
11. How foreign tourists differ from domestic tourists?
 Foreign tourists are the tourists from abroad but domestic tourists are the tourists
from within the home country.
12. Why tourism is a service oriented industry?
 It is a service oriented industry because its main objective is to provide services to the
people who come to visit different places of Nepal.
13. Why do you think fewer tourists visit in Nepal in the year 2015?
 Because of devastating earthquake and the economic blockade by India.
14. What is rafting?
 Rafting is sailing in small boats on large fast flowing rivers for the purpose of
adventure.
15. Name the place of Nepal where people can enjoy:
 Rafting: Bhote Koshi River, Trishuli
Paragliding: Pokhara, Bandipur

Short questions
1. What is the difference between the International and domestic tourists.

 The differences between the International and domestic tourist is given below:
Domestic Tourists International Tourists
Travels within the country Travels outside the country
Less hassle as no language and cultural More hassle as language and cultural
differences differences
No need legal documents such as visas or Need legal documents such as passports
passports and Visas
Given less priority and less preferred over Given more priority and more preferred to
International tourists domestic tourists
2. Why do people travel? Discuss.
The purposes of tourism are given below:
 Learning language, culture, history, geography, economy etc. is a strong reason
why people like to travel
 Building and strengthening relationships and enjoy more quality time together
 Having both luxury and an adventure to challenge themselves
 Escaping a demanding job, hectic and busy life
 Relaxing, celebrating and rejuvenating
 Enhancing trade and business and for religious purpose as well.
3. Discuss the possibilities of developing adventure tourism in Nepal.
 Though small geographically, the country is rich in multitudes of terrain landscape,
facilitating some of the best adventure sports to take place. It is estimated that more
than 60% of the international tourists visiting the country come here for adventure
tourism. Home to hundreds of peaks including 8 of the highest mountains in the
world, scores of trekking routes and rivers originating in the Himalayas, Nepal has
been a paradise for adventure seekers offerings them the ultimate challenges. The
world recognizes Nepal for its vast array of natural resources, majestic snow capped
mountains and floras and faunas Nepal’s geographical diversity provide an ample of
adventure possibilities like skydiving, mountaineering, high altitude trekking, rock
climbing, paragliding, mountain biking, bungee jumping, snow skiing, white water
kayaking etc. are the major attractions of Nepal. Nepal offers an astonishing diversity
of sightseeing attractions and adventure opportunities that are found nowhere else.
4. Why do the foreigners wish to visit the rural parts of Nepal?
 Nepal where major chunk of area is occupied by villages has tremendous potential in
rural tourism. Most foreigners are keen to visit pristine rural areas with great natural
scenery.
 Most foreigners want to involve in rural community life and activities
 Rural people are very hospitable and warm.
 Villages are rich of culture, life style, values and tradition
 Untouched by modernity, Nepalese villages are really beautiful with snow
capped mountains, green lush agricultural fiends and cheap as well
 Great tourism experience such as Home stay, organic farm stay, voluntarism,
wellness tourism is found in Nepalese villages.
5. There is a great possibility of developing cultural tourism in Nepal. Justify.
 The ethnic and cultural diversity of Nepal is unparalleled considering its size in the
world map. There are 125 ethnic groups who speak 123 different languages and

follow more than 10 religions in the tiny Himalayan nation. Nepal is one of the most
beautiful and peaceful multi religious, multi ethnic and multi- cultural countries in
the world. The ethnic unity and religious harmony maintained by the Nepalese
against such diversity are truly remarkable and have been recognized internationally.
There are several cultural beliefs and customs. The many cultural heritage of Nepal
are included in the world heritage site. One of the interesting ways of understanding
the beauty and richness of Nepali culture is through festivals. Participating in the
local festivals gives visitors an insight into the life of the Nepali and makes their stay
in Nepal more colorful. The different ruling dynasties patronized Nepali culture, but
in essence, it has been a people culture and a culture nurtured by the people through
the ages.
6. There is a great possibility of religious tourism in Nepal. Justify.
 Another lucrative area of prompting Nepalese tourism lies in exploring pilgrimage
destinations scattered throughout the nation. Generally the beginning of tourism in
each country started with religious tourism. Even now, especially in Asia, religion is
the strongest motive to travel. Foreigners have been visiting Lumbini from last 2000
years. The devotees of Pashupatinath from the nearby countries had been visiting
Nepal for hundreds of years. The religious minded pilgrims or tourists are not only
interested in their religious objects but they are also interested in the culture of the
country, e.g. habits, languages, customs, historical monuments, arts and festivals of
the people. They exchange the experiences with the local people, which can be of
great informal educational value. Nepal has enormous ancient pilgrimage sites.
Nepal is generally known as the birth place of Sita and Buddha. It is also known as
the abode of Lord Shiva and the country of living goddesses. Nepal is also known as
Shangri-La. There are places of great natural beauty, medieval age culture with great
mythological base such as Baraha, Tengboche, Manakamana, khaptap etc.
Moreover, there is high potentiality of developing spirituality tourism as the
Himalayas have always been considered the seat of spirituality since ancient times.
7. What should be done to increase the number of tourists in Nepal?
 In more than 70 years of tourism development, we are still struggling to bring 1
million tourists despite the fact that we have numerous unparalleled tourism products
and destinations. What has paralyzed our tourism sector? In my opinion, the
following things should be done:
 Diversify the tourism sector: We are largely confined to nature-based tourism
and have put other potential sectors – culture, heritages and leisure activities -on
the back burner. We have failed to develop new destinations and products. The
range of products should be diversified by opening new areas and locations.
 Infrastructural development: Accessibility, accommodation and attraction are
the basic components of tourism development. A single international airport,
poor state of air network, bad roads and weak road networks are some serious
impediments to tourism development. Trekking routes lack resting places and
good accommodation facility. Enough infrastructural development should be
established to attract the tourists.
 Marketing Strategy: Traditional marketing strategy has been adopted to
develop tourism sector in Nepal. It has largely failed to develop and manage
tourism products and market it in the international arena. Lack of research,
innovation and outreach strategies is one of the impediments to tourism
promotion. We must put advertisements in popular international media to
promote Nepali tourism internationally. Use of social media sites, interactive

websites, mobilization of Non Resident Nepali and embassies are some of the
tools to reach out to tourists.
 Attract new Investment: A poor investment environment stems predominantly
from political and administrative instability, a lack of consistent planning and
implementation, insufficient government support arrangements and escalating
labor disputes.
 Political stability: Political instability gives rise to a number of broad
uncertainties and encourages certain behaviors, which both cause challenges for
private sector investment and operation. Specific challenges related to this
include events such as strikes and closures, which prove costly to tourism
businesses as well as damaging to the image of the country.
8. Write about the Great Himalayan Trail.
 The Himalayan region from Mt. Kanchenjunga to Mt. Saipal is called the Great
Himalayan Trail. It was between these two boundaries 8 peaks above 8,000 meters,
1300 peaks of more than 600 meters and 240 peaks above 5000 meters lie here. It
was announced on Nepal Tourism year 2011, the year which was marked officially as
the Nepal Tourism year. Appa Sharma completed it for the first time. Other
Important touristic sites like Kanchenjunga National Park, Malaku Barun National
Park, Sagarmatha National Park, Manang, Mustang, Dolpa etc. lies here.
9. What is the strategy to develop tourism in current 14th periodic plan?
 The strategies to develop the tourism in current periodic plan are:
 Promoting tourism with the collaboration with private sector
 Creating additional touristic destination and create employment opportunity
through village tourism
 Publicity focusing to neighboring and other countries
 Prioritizing for sustainable tourism development by encouraging internal tourism.
10. What negative impacts are brought by the tourists in the local areas and what are
the measures to check problems?
 The negative impacts brought by the tourists in the local areas are:
 It creates Overcrowding of local area
 It increases the pollution and creates environment hazard
 It spoils the local typical culture and traditions due to the arrival of many tourists
from different background and increases social crimes
 Increment in goods price and lack of basic commodities
 There may be the spread of diseases and drugs and threat to national security as
well
The following measures must be done to check these problems:
 Number of tourists must be limited
 New destinations must be explored
 Strict law for eco-tourism must be supervised and implemented
 Promoting environmentally friendly ways of disposing waste and proper
disposition and sanitation must be arranged.
11. What specific efforts are being made in Nepal to promote tourism in Nepal?
 The specific efforts being made in Nepal to promote tourism in Nepal are:
 Nepal has started a campaign “Visit Nepal year 2020” with a tag line life
time experience which aims to bring 2 million tourists by 2020.
 Nepal Government celebrated 2011 as Visit Nepal year and 20102 Visit
Lumbini year

 Nepal government has adopted tourism policy 2065, tourism act 2035, and
mountaineering expedition rules 2059 to manage the tourism industry in
Nepal
 Nepal has been promoting tourism in the international arena through
different Medias and slogans.
12. Write about Visit Nepal year 2020.
 The Nepal government has planned the 2020 as the Visit Nepal year aiming to bring
2 million tourists in the country and earning 200 billion. The announcement of the
Visit Nepal year will give a positive message to the world and the campaign will
attract more tourists to Nepal. The government has been planning a wide range of
tourism promotion and related developmental activities across the country. The
government has already selected 100 destinations in 2018 and now it is adding 10
more destinations in every province. For improved connectivity it is going to start
two international airports- Pokhara and Lumbini. Nepal tourism board has hosted
special road shows in UK. Nepal appointed veteran Indian actress Jaya Prada as the
good will ambassador to India to promote tourism. 8 new bog hotels are going to be
started soon. Air service agreements with New Zealand, UAE and Turkey is being
finalized. The authorities concerned should work hard to upgrade existing roads and
develop newer road connectivity at the earliest, keeping the Visit Nepal 2020 project
in mind.
13. What is the prospect of Sports tourism in Nepal?
 The climate of Nepal is favorable for sport tourism. The Elephant polo is the only
game played in Nepal. Snow capped Himalayas can be developed as the possible
centers for alpine skiing, snowboarding, ski jumping, and figure skating etc. Bike
racing and horse riding can be developed in Hilly region. The perennial rivers can be
used for kayaking and rafting. The huge pasture land in the hills may be used for
games like gulf.
14. How can we minimize the bad effects of tourism industry?
 The bad effects of tourism industry can be minimized by the following ways.
 Exploitation of natural resources by the tourism industry can be managed by
developing eco tourism
 Drug dealings, sex trade and social crimes can be minimized by
implementing strict rules and regulations and managing open boarder with
India
 Overcrowding should be managed by limiting the number of tourists in one
particular time.
 Imitation of new culture by local people must be discouraged through public
awareness.
Long Questions
1. Why tourism is important for a country like Nepal?

 As one of the world’s largest economic sectors, travel and tourism generates
approximately US$ 8.8 trillion annually and contributing 319 million jobs to the
world economy. So it continues to make a real difference to the lives of millions of
people by driving growth, reducing poverty and fostering development. Tourism has
become one of the main income sources for many developing countries like Nepal.
Nepal has great potential to become a top destination for tourists as the nation is
famous for its snowcapped mountains, abundant flora and fauna, exciting trekking

routes and rich cultural and religious diversity. For Nepal, tourism is the main
instrument for regional development with positive economic impact on the income,
employment and production.
Significant source of Income: More than 7.5% of Nepal’s GDP relies on tourism i.e.
220 billion Nepalese currency. Nepal is ranked 137th country to where tourism
directly contributes to country’s GDP.
Employment opportunities: 3.2% of employment in Nepal is generated by tourism
i.e. nearly 5 % of the total employment.
Upliftment of living standard: In 2017 alone the internal tourism consumption was
Rs.168 billion. The expenses is local places is likely to boost up the living standard of
the people
Preservation of cultural heritage and cultural exchange: Cultural heritage are
being reconstructed, renovated and preserved for the development of tourism purpose
in Nepal.
Strengthening relation between the government and citizens: Religious tourism in
Nepal has helped to preserve the century long relation between people of different
countries. For instance, the common faith of Hinduism has helped to increase the
friendship between citizens of India and Nepal.
Publicity of hidden treasures: There are many heavenly places in Nepal such as
unexplored trek route, new river for rafting, a new place for paragliding and so forth.
These hidden treasures can be exposed to the world through the publicity which is
best done by the tourism.
Publicity of nation: Nepal is a small country, difficult to be located in the world
map. Tourism helps to publicize the country and its art, culture, skills, tradition,
beauty and hospitality in different parts of the world.
2. Describe the challenges faced by tourism industry and the measures to solve them.
 Nepal with rich ancient cultures set against the most dramatic scenery in the world is
a land of discovery and unique experiences. Despite the high possibility of tourism
development in Nepal, it has been developed as expected. But so many challenges are
hindering the development of tourism in Nepal.
1. Lack of infrastructures and facilities of tourism: Nepal has poor prerequisites
developed for tourism. Failing to meet the basic requirements of transportation,
communication and accommodation are hindering to attract tourists to Nepal. Poor
connectivity of road, no connectivity air routes, no reliable means of communication
in remote places are the major problems.
Solution: Proper and well managed developmental plan is needed to develop the
infrastructure of the country.
2. Lack of preservation of cultural and heritage sites: Though Nepal is enriched with
cultural and religious heritages, they have not been preserved, promoted and
renovated well spreading bad message to the world about poor touring in Nepal.
Solution: The government has to make clear plan to reconstruct and maintain the
demolished heritages like temples, places, etc.
3. Lack of entertainment facilities: Tourists wants various entertainment facilities and
services in the places wherever they tour. There are very limited places in Nepal that
can provide such facilities.
Solution: Various modern entertainment facilities and services should be maintained
in the tourist’s hub

4. Lack of systematized tourist centers and trained guides: Nepal doesn’t have
tourist centers to provide help and reliable information to the tourists. Most of the
tourist’s guides in Nepal are untrained and themselves lack proper knowledge and
information.
Solution: Organized tourist information centers and proper guides should be
prepared through trainings and work shops
5. Lack of Publicity: Advertisement and publicity is the key to attract tourists but we
have been lagging behind in this regard. International marketing is not done at all in
an integrated manner.
Solution: Nepal should do international marketing campaigns, appoint ambassadors
and celebrities to make a tourism brand.
6. Political stability: Political instability gives rise to a number of broad uncertainties
and encourages certain behaviors, which both cause challenges for private sector
investment and operation. Specific challenges related to this include events such as
strikes and closures, which prove costly to tourism businesses as well as damaging to
the image of the country.
Solution: All political parties and the government should be responsible to make
Nepal strike and ‘Bandha’ free and make tourism friendly policies
7. Diversify the tourism sector: We are largely confined to nature-based tourism and
have put other potential sectors – culture, heritages and leisure activities -on the back
burner. We have failed to develop new destinations and products. The range of
products should be diversified by opening new areas and locations.
Solution: The concept of eco tourism sports tourism, home stay, agro- tourism, rural
tourism must be introduced to diversify the tourism sector.
3. Nepal has high potentiality for tourism development? Describe each of them in short.
 Nepal offers an astonishing diversity of sightseeing attractions and adventure
opportunities that are found nowhere else. Nepal with rich ancient cultures set against
the most dramatic scenery in the world is a land of discovery and unique experiences.
It is unsurpassed that the sheer diversity Nepal boasts, from steamy Jungle and Terai
to the icy peaks of the world’s highest mountains. Trekking, mountaineering, rafting,
religious spirituality etc. and many more things Nepal can give. Few of the prospects
of Tourism are given below:
1. Adventure Tourism: Though small geographically, the country is rich in
multitudes of terrain landscape, facilitating some of the best adventure sports to
take place. It is estimated that more than 60% of the international tourists visiting
the country come here for adventure tourism. Home to hundreds of peaks ,scores
of trekking routes and rivers originating in the Himalayas, Nepal has been a
paradise for adventure seekers offerings them the ultimate possibilities like
skydiving, mountaineering, high altitude trekking, rock climbing, paragliding,
mountain biking, bungee jumping, etc.
2. Cultural Tourism: The ethnic and cultural diversity of Nepal is unparalleled
considering its size in the world map. There are 125 ethnic groups who speak 123
different languages and follow more than 10 religions in the tiny Himalayan
nation. Nepal is one of the most beautiful and peaceful multi religious, multi
ethnic and multi- cultural countries in the world. The ethnic unity and religious
harmony maintained by the Nepalese against such diversity are truly remarkable
and have been recognized internationally.

3. Religious Tourism: Another lucrative area of prompting Nepalese tourism lies

in exploring pilgrimage destinations scattered throughout the nation. Foreigners
have been visiting Lumbini from last 2000 years. The devotees of Pashupatinath
from the nearby countries had been visiting Nepal for hundreds of years. Nepal is
generally known as the birth place of Sita and Buddha. It is also known as the
abode of Lord Shiva and the country of living goddesses. Moreover, there is high
potentiality of developing spirituality tourism as the Himalayas have always been
considered the seat of spirituality since ancient times.
4. Bio Diversity and Natural Beauty: Bio diversity exits in Nepal due to varied
landform and climatic condition. National parks and wild life reserves has been
developed well amidst these varieties. Tourists have been fascinated by the
panoramic view of Himalayan ranges, beautiful hilly areas, topographical
varieties, landscapes, Lakes, Rivers etc. Such picaresque features of nature
cannot be excelled by anything in the world.
5. Village tourism: Nepal where major chunk of area is occupied by villages has
tremendous potential in rural tourism. Most foreigners are keen to visit pristine
rural areas with great natural scenery and untouched by modernity with great
hospitable people. The variant of life style in the village can be attracted to the
tourists. Nepal tourism year 2011 has introduced the concept of Home stay too.
6. Hospitable Behavior: The Nepalese are hospitable by birth and polite by nature.
They respect guests as god and treat them in a friendly manner. They have rituals
of offering what they can to their guests guided by the concept of “ Atithi Debo
Bhawa”.
7. The Great Himalayan Trail: The Himalayan region from Mt. Kanchenjunga to
Mt. Saipal is called the Great Himalayan Trail. It was between these two
boundaries 8 peaks above 8,000 meters, 1300 peaks of more than 600 meters and
240 peaks above 5000 meters lie here. It was announced on Nepal Tourism year
2011, the year which was marked officially as the Nepal Tourism year. Other
Important touristic sites like Kanchenjunga National Park, Malaku Barun
National Park, Sagarmatha National Park, Manang, Mustang, Dolpa etc. lies
here.

Unit: 8 Economic Activities Lesson: Water a Major source of Power

1. What is the potential of hydroelectricity in Nepal?

 83000 MW (as per Hari Man Shestha in 1967 A.D.)
2. What is the technical and economic hydroelectricity potential of Nepal?
 44,370 MW
3. Write any two sources of energy.
 Water and Sun
4. How the rivers in Nepal are good for power generation?
 Most of the rivers of Nepal are snow fed, fast flowing and perennial in nature
5. a)Theoritical hydro potential of b) Technical and economic Hydro electricity potential of
 Koshi- 23.350 MW Koshi- 10,800 MW
Gandaki- 20,650 MW Gandaki- 5,270 MW
Karnali & Mahakali – 36,000 MW Karnali & Mahakali-27,360 MW
6. How much electricity production is the target of 14 th plan?
 2279 MW
7. Which was the first hydro electricity plant of Nepal?
 Parphing( Chandra Jyoti) established in 1968 B.S. producing 55 KW
8. Name any two traditional sources of power used in Nepal?
 Firewood and Biogas
9. What is meant by Public private partnership?( PPP Model)
 The long term contract between a private party and the government entity for
providing public service in which the private party bears significant risk and
management responsibility.
10. What is IPP , PPA and DPR
 Independent power producers / power purchase agreement/ Detailed project report
11. What can be the two ways to utilize the water resources available in your local level?
 Hydro electricity and irrigation
12. Define water resource
 The natural Sources of water that is potentially useful for agricultural, industrial,
household activities
Short questions
1. “Nepal has a huge potential for hydropower generation”. Justify the statement.
 Nepal is a country endowed with huge potential for renewable energy specially water
resources. There are more than 6000 rivers and many underground and surface
sources of water. It is estimated that 70% of dry season flow and 40% of annual flow
of Ganga River came from Nepalese rivers only. According to FAO(2003), Nepal
ranks 44th in terms of annual resource availability. Most of the rivers are steep
gradient, snow-fed, fast flowing and perennial in nature. Such rivers are very suitable
for hydro electricity generation. The estimated hydropower generation is
approximately 83,000 MW which is about 2.26% of the world’s hydropower
generation of which 42,000 MW is considered to be technically and economically
feasible. Karnali and Mahakali river system has potential of 36,180 MW, Gandaki
has potential of 20,650 MW and Koshi has potential of 22350 MW. Nepal receives

1500 mm of annual rainfall. Since, hydro turbines are driven by the force of water
against their blades, Nepalese rivers are suitable for it. The topography, with its high
relief and high river flow, provides potential for abundant hydropower development
through runoff water mechanism. The annual consumption of electricity in Nepal is
only 100 KWh per person which is way too low compared to electricity use in other
countries. So there is enormous chance of exporting the surplus hydro electricity
from Nepal.
2. Mention the measures to remove energy crisis in Nepal.
 Nepal has been suffering from the chaotic energy crisis for almost 2 decades now
despite having a potential for generating 43000 MW of hydroelectricity, 22000 MW
of solar power and 3000 MW of wind power.
The measures to remove the energy crisis in Nepal as as follows:
 Alternative energies such as Mini-hydropower, solar and some wind power
could potentially play a very significant role in Nepal’s energy mix in the
years to come
 Mobilize remittance under public private partnership model to construct
hydropower projects
 Develop basic infrastructures such as transportation, communication,
transmission line etc.
 The government should formulate a long term policy and action plan to make
the country self reliant in energy
 Foreign investment should be attracted in mega hydro power projects
 Alternative energy should be promoted.
3. How can Nepal be benefited from the hydropower generation?

 Nepal can be benefited from the hydropower generation as follow:
 Hydropower helps to solve the current energy crisis of Nepal
 It helps to reduce the massive exploitation of traditional sources of energy
such as wood, coal and petroleum products
 It helps to earn foreign currency by exporting the surplus electricity to
foreign countries
 It helps in modernization by developing transportation and communication
 It saves states revenue to buy petroleum products
 It offers employment opportunities to many and also develop the living
standards of rural areas of Nepal where there are hydropower sites
 It can play positive role in the development of industry in the country
 Construction of large dams and other installations may improve multipurpose
programs like irrigation, fishery, navigation, tourism, water sports; aqua
industry, preventing floods etc. can be developed.
 Electricity is invisible fuel which is clean and easy for consumers to use at
the flick of a switch unlike coal and oil which are bulky and dirty. It can be
transformed even to sparsely populated upland areas by means of wires.

4. Will Nepal be capable to produce hydro electricity in surplus and earn foreign currency by
exporting it? Give your opinion.
 I think Nepal soon will be a hydropower exporting country backed by its huge
potentiality to produce 83000 MW of hydro electricity. A 20 year plan for
hydropower development has been introduced in Nepal since 2067 Asar.
 No license is required to produce hydro electricity up to 100 KW which will
engage many small investors to set up plants at rural parts of Nepal.
 100% foreign investment can be done in hydro electricity in Nepal which is
increasing big firms abroad to set up huge hydro electricity plants in Nepal
 There is a provision not to nationalize the hydro electricity projects set up by
the private sectors
 The royalty is kept minimum to be paid to the government i.e. only Rs. 100
per KW per annum. And it is also exemption to pay income tax for 15 years
from the date of production
 Within Nepal there is growing institutional knowledge, technical know –how
and capacity to produce hydro power because enough projects have
proceeded in Nepal. Eg. Upper Tamakoshi
 Now political stability is in the country with a newly drafted constitution and
the government of 2/3 rd.
 With a number of share opening for hydropower projects from the public and
private sector, this sector is able to attract huge investments.
 Currently, around 3000 MW of hydropower projects are being run and Budhi
Gandaki alone has capacity to produce 1200 MW of hydro electricity.
5. What efforts have been done by the Government of Nepal to promote hydro power
development in Nepal?
 The efforts done by Nepal to promote hydro power development in Nepal are as
follows:
 Electricity act was introduced in 2049 B.S.
 There is a provision of not to take license and no need to pay tax for the production up
to 100 KW of electricity
 Hydropower investment and Development bank was set up in 2068 B.S.
 Alternative energy promotion centre is established by the government
 Nation electricity crisis plan was in effect from 2065 B.S.
 Nepal civil service hydro electricity Development Company was established in 2069 B.S.
6. Enlist three traditional and three modern sources of energy.
 Traditional sources- Firewood, Cow dung, Stalks of plants
 Modern sources- Hydroelectricity, Solar power, Thermal and nuclear power
Long questions
1. What are the problems and challenges for developing hydropower in Nepal and how can
they be solved?
 Nepal can potentially generate over 83000 MW .Despite having such huge
hydropower potentiality; Nepal only generates around 847 MW from its hydro
resources. Today nearly half of Nepal’s population has no access to grid connected
power. The shortage of power hinders the industrialization and economic progress.
Despite having huge hydro energy, only 1% energy need of Nepal is fulfilled by the

hydropower. The problems and challenges of hydropower generation in Nepal is

given below with possible solution measures.
a) There is a lack of proper planning for hydropower development.
Solution: It is highly recommended to make a hydropower master plan covering all
four major river basins and to prioritize projects based on different factors, including
technical economic, proximity to the load centre etc.
b) Limited hydropower sites: There are very few rivers with high base flow and
low seasonal variation. Ideal sites are difficult to find because of difficult
geographical grid. Himalayan rivers also contains high sediments with high
abrasive particles
Solution: Nepal needs more reservoir projects for reliable projects for reliable power
supply throughout the year. Reservoir store water when there are high flows during
the monsoon season, which will be used to generate power when there river flow is
low in the winter.
c) Less infrastructural development: Hydropower sites need good transportation
connectivity to the sites which always has been a problem by virtue of the
difficult geographical topography of Nepal and distant situation of hydropower
plants.
Solution: The government should create a favorable environment by investing in
such infrastructure such as roads and transmission lines. Roads are not only for
hydropower but this will make the hydro projects including reservoir projects, more
attractive to develop.
d) Production leakage and loss: The system has over 30% loss in transmission and
distribution system.
Solution: Improvement in substation, transmission and distribution lines as well
controlling theft of power needs to be in effect with strong regulations.
e) Political and policy problem: Unstable political environment, frequent change
of government, inefficient and extremely politicized bureaucracy and unclear
regulations are impediment to hydropower production. Even securities threats are
there in Nepal with some hydropower being vandalized recently. India dominant
silent features in all Nepali affairs also play big games in Hydropower.
Solution: A strong frame work needs to be designed with stable acts and one
door policy of the government for potential investors. The government should
ensure 100% security of the hydropower plants. There should be no foreign
interference at all.
f) Benefit sharing: The idea of benefit sharing is to make sure that parts of the
benefits that power produces derive out of their hydropower projects also accrue
to the local in some way for what they have to give up their land, sources of
livelihood and environmental safety. So, local people obstruct the projects with
their unnecessary demands delaying it and making the cost higher.
Solution: Proper regulatory frame work regarding benefit sharing mechanism
must be developed on what the locals can demand from the developers, what the
developers are supposed to give back and what role the government has to play to
in terms of mitigating the conflicts between the two parties
g) Institutional challenges: Numerous regulatory hurdles and slow bureaucratic
approvals dissuade foreign investors. There is a potential hazards lurk within the
legal structure which is out of date.
Solution: One door policy should be introduced giving Nepal Investment board all
the rights to regulate the foreign investment in hydro power.

Unit : 8 Economic activities Lesson: Foreign employment

Very short questions
1. Define foreign employment.

 Working abroad for earning money is known as foreign employment.
2. What is meant by remittance?
 Remittance refers to money that is sent or transferred to another country especially by
foreign migrants. The term is derived from remit which means to sent back.
3. What is 3D jobs?
 Dirty, dangerous and difficult jobs are called as 3D jobs
4. When was the foreign employment act introduced in Nepal?
 2064 B.S.
5. Who two state bodies regulate foreign employment in Nepal?
 Ministry of labor and employment and foreign employment promotion board
Short Questions
1. What are the advantages of foreign employment to Nepal? Explain.

 Labor mobility has been an important and essential feature of economic and social
development throughout the human history. Labor migration for overseas
employment has rapidly increased, particularly after globalization. The Nepalese
economy is increasingly becoming dependent on remittance sent home by migrant
workers. The overseas migration and remittances have been instrumental in poverty
alleviation as well as for improving the living standards of the people. Some of the
importance of Foreign employment are:
 Migration touches the lives of majority of Nepali, whether directly or through family
members: 55% of Nepali households receive remittances, which contributes 29% of
Nepal’s GDP. Nepal received 784 billion Rs. remittances in 2075/76. Remittance has
surpassed the export as the top contributor in terms of foreign exchange earnings.
 It has helped to reduce poverty and reduce economic inequality in Nepal. An average
increases by 10% in remittance would reduce the poverty by 0.9%.
 The remittance money is utilized to improve the living standard of the people and
raising socio- economic status. People have got chance to invest in education,
housing and trading
 It has been the best solution to present unemployment solution of nation. 512
thousand (1403 each day) Nepalese youth enter the job market each year and out of
them 468 thousand (1300 each day) leave the country for foreign employment. About
45 million foreign employees have left the country; out of them 1.5% are skilled,
23% semi skilled and 75.5% unskilled.
 Modern and new cultures, techniques and concepts are learnt from developed
countries. So many new business concepts are introduced in Nepal.
 Nepal has foreign employment agreement with 110 countries which improves the
international relation of Nepal
2. For what reasons do Nepalese go abroad?
 Everyday around 1400 Nepalese go abroad for foreign employment. The main
reasons are
 Limited employment opportunity due to the slow pace of industrialization
 To get rid of poverty and pay back the loans

 Deteriorating agricultural productivity

 Political instability and a decade long Maoist insurgency
 Influence of well wishers, friends and relatives , social pressure and early marriage
 Temptation to better payments and facilities
3. How can more employment opportunities be created in Nepal?
 No one disagrees that foreign employment is not a permanent solution to keep the
economy afloat. The government should come up with long term plans to gradually
reduce the dependence on foreign employment by creating employment opportunities
at home. People below 35 years of age is 70 % in Nepal as per 2011 census and its
up to the government how to use this youth force. The employment opportunities can
be created in Nepal by the following ways:
 Formal education should be oriented towards skill- oriented education by
promoting vocational education.
 Transformation of informal employment into formal employment must be
done
 Employment friendly investments must be encouraged by developing large
scale industries
 Stress should be laid on generation of employment at local level by
developing the infrastructures of hydro powers and energy sources
 Employment exchanges agencies and other employments shops should be
encouraged to operate
 Opportunities should be created at tourism sector by opening new trekking
routes, development of virgin tourist’s destinations
 Entrepreneurial and self employment training should be given in all 77
districts.
4. How can the money received through remittance be properly utilized?
 The remittance coming from the sweat and dedication of outbound workers continues
to be the life blood of Nepalese economy. Increasing underperformance of the key
sectors of the domestic economy like agriculture, industry has compelled most
Nepalese to go abroad. Remittances do not automatically contribute to national
development. To carry out effective and efficient public policies to channel
remittances into productive projects The remittance must be utilized in a proper way
by the following way:
 The government should exempt tax for remittance income
 Social finance institutions and credit unions should be encouraged to attract,
channel and administer the remittance as many rural parts of Nepal don’t
have financial institutions. Higher interest rate should be given to attract
remittance receipt in banking system.
 Remittances can be attracted to strategic sectors based on locally available
resources with potential for productive investment for increasing
employment and production.
 Use of remittance on consumer goods (Which is 80% in Nepal) must be
reduced and bring some policies to use them in capital production (Which is
3% in Nepal).
 The remittance must be encouraged to invest Public private ventures like of
hydropower.
 The government should ease regulations and control with attractive deposit
schemes and bonds.

 The opportunity to promote self-employment and small business formation

amongst returning migrants and their relations back home should be
acknowledged by the government and schemes must be targeted to support
investment in business activities
 Provide matching funds to the collective remittances sent by migrant
organizations abroad.eg. Mexico allocates $2 for every dollar migrant
organizations remit back in their communities. The pooled funds are
normally used to finance infrastructure and social projects.
5. List the various preparations and precautions that a Nepali citizen interested in foreign
employment should apply while proceeding.
 Foreign employment has both prospect and risk. Job seekers who had to travel abroad
have to suffer due to various reasons. So following precautions must be made:
 He/she must ensure that the destination country is among the 110 countries
opened for foreign employment and he is minimum 18 years and she is
minimum of 24 years of age.
 Planning in advance and getting the reliable information about the type of
work, the skill required, destination country, authorized employment
agencies etc. must be done. Accurate, authentic and reliable information can
be obtained from the Department of foreign employment, ministry of labour
and employment.
 Mental readiness: Job seeker must be physically fit and healthy. He/she
should get health certificate from the government authorized medical
institutions
 He/she needs a passport which can be made if the citizenship is with him/her.
 Job seeker can contact the authorized and licensed man power agency with
their documents including educational, work skill and experience certificate.
 Information regarding the cost, type of work and other privileges must be
obtained from the man power agencies.
 It is mandatory to obtain the pre-orientation training from the specialized
agencies
 One must take the permission letter from the foreign employment
department.
6. Show in a table the roles to be played by the government, man power agencies and civil
societies in properly managing the world of foreign employment.
 The roles to be played by the government, man power agencies and civil socities are
given below:
Government’s role Man power agencies role Civil society’s role
Easing passport and visa Obey the law strictly Rescue and rehabilitation
program for victims
Identify attractive destination Skill development program Advice and guidance
Mobilization of remittance Fair recruitment procedure Protest against exploitation
Management of Insurance Follow business ethics and Publicity of government laws
and labour attaches morality
Plan, policies and regulations Coordinate with government Public awareness companies
to make it safe and reliable timely to avoid any frauds
7. What are the efforts being made by Nepal to solve the problems of foreign employment?
 The efforts made by Nepal government to solve the problems of foreign employment
are given below:

Labour act was introduced in 1992 A.D.

Foreign employment act 2064 B.S. and Foreign employment policy 2068
BS.S are in effect
 Foreign employment department and foreign employment promotion board is
set up
 Labour contract is done with 110 destination countries to send Nepalese
workers
 EPS( Employment permission service) agreement is done with Korea to
send Nepalese workers and a similar agreement recently is signed with the
Japanese government.
8. How can a person benefit from pre-orientation training?
 It is mandatory to receive pre –orientation training from the specialized agencies. It
has several benefits such as:
 Getting legal information about foreign employment
 Informs about the documents requirements for travel
 Makes familiar with the department procedures
 Gives induction to the legal and cultural procedures of destination countries
Long questions
1. What are the challenges seen in the foreign employment sector. Enlist them.
 Many challenges remains in foreign-employment which includes:
 Enhancing the capacity of workers so that they will get a good job
 Expanding training and skill to increase competitive capacity as per the work
demand
 Increase coordination and cooperation between the man power agencies and
the destination countries
 Minimize migration related expenses and fraud
 Empowering and strengthening diplomatic missions and operating new
diplomatic mission at destination countries and strengthening relation with
countries of employment.
 Ensuring protection for undocumented worker
 Protecting best interest of workers and rescuing workers those are in problem
 Protection of women worker and also their basic human rights,
 Receiving remittance through proper channels and using remittance on
productive sectors; reducing social cost for foreign employment.
2. Write about the positive and negative aspects of the foreign employment.
 The positive aspects of foreign employment are given below:
Labor mobility has been an important and essential feature of economic and
social development throughout the human history. Labor migration for overseas
employment has rapidly increased, particularly after globalization. The Nepalese
economy is increasingly becoming dependent on remittance sent home by
migrant workers. The overseas migration and remittances have been instrumental
in poverty alleviation as well as for improving the living standards of the people.
The positive impacts of Foreign employment are:
 Migration touches the lives of majority of Nepali, whether directly or through
family members: 55% of Nepali households receive remittances, which
contributes 29% of Nepal’s GDP. Nepal received 784 billion Rs. remittances in

2075/76. Remittance has surpassed the export as the top contributor in terms of
foreign exchange earnings.
 It has helped to reduce poverty and reduce economic inequality in Nepal. An
average increases by 10% in remittance would reduce the poverty by 0.9%.
 The remittance money is utilized to improve the living standard of the people and
raising socio- economic status. People have got chance to invest in education,
housing and trading
 It has been the best solution to present unemployment solution of nation. 512
thousand (1403 each day) Nepalese youth enter the job market each year and out
of them 468 thousand (1300 each day) leave the country for foreign employment.
About 45 million foreign employees have left the country; out of them 1.5% are
skilled, 23% semi skilled and 75.5% unskilled.
 Modern and new cultures, techniques and concepts are learnt from developed
countries. So many new business concepts are introduced in Nepal.
 Nepal has foreign employment agreement with 110 countries which improves the
international relation of Nepal
But, foreign employment has some negative aspects as well:
 Affect labour supply as since remittance recipients house hold may
choose more leisure than labour
 Over dependence on remittance has spurred consumption and jacked up
inflation
 It has created shortage of industrial work force. Large swathes of land
have been left fallow as youths are leaving for foreign job markets
 Rise in consumption level of Nepalese led to increment in imports
eventually leading to trade deficit. Luxurious items such as gold, alcohol,
tobacco has increased.
 Social and psychological cost of foreign employment is high. Family
destruction, women bearing more workload, children depriving from
love and care of parents, divorce etc. has been a common case.
 Deterioration in cultural values and norms including carrying of
communicable diseases
 Risk of one’s life and lack of safety and security abroad.
3. What are the problems seen in the foreign employment? What are the possible solutions to
it?
 The problems seen in the foreign employment are given below:
 Individuals those are willing to depart abroad for foreign employment are facing
insecurity due to lack of proper information. Individuals are forced to seek
employment opportunity for their livelihood and are being exploited
 workers are unable to receive remuneration and facilities as per signed contract
or are forced to work other than designated work or hazardous work
 increasing vulnerability of trafficking and exploitation for Nepali workers
 due to false documents or applying wrong procedure, increasing trend to go to
foreign employment through open border without approval, and also using visit
visa or entry visa and not having labour approval which has increased the
vulnerability of human trafficking and exploitation
 Most are influenced by unauthorized agents, use of false documents or applying
wrong procedure with fake promises.

 Individuals are being vulnerable and are being victim due to difficult and
dangerous jobs because 75% people who go for foreign employment are
unskilled.
 Diplomatic presence in limited countries only has hindered the rescue operation
and help Nepalese abroad in difficulties. Only 25 countries out of listed 110 have
diplomatic missions.
 Negative social approach toward female including physical and sexual
exploitation and harassment who through illegal route as domestic workers.
 Increasing social cost by family destruction, women bearing more workload,
children are deprived from love and care of parents , divorce and bearing
psychological impact
The solution to current employment problem can be solved by the following ways:
 The government should forbid our nationals to work under danger and
difficult situations and barring migrants from working in countries where the
security threat is high.
 Effective administrative mechanism must be introduced to check illegal
migrants.
 Dismantling the base of the foreign employment agents and punishing those
engaged in corruption and malpractices should be punished. Despite
government’s decision to implement a free visa and free ticket policy for
outbound workers, workers are being duped by clandestine agents.
 Arrangements of appropriate trainings and pre- departure job orientation to
familiarize the labour migrants with the employment policies of the
destination countries should be imparted.
 Proper registration ,monitoring and regulations of man power agencies
should be done in a consistent basis
 Government needs to address concerns of female workers on labour market
and ensure their rights in overall migration cycle.
 Diplomatic mission shall be mobilized in the direction of financial diplomacy
by empowering them with resources and capacity to promote and systematize
foreign employment.
 Human smuggling and trafficking during foreign employment shall be
controlled. Rights of Nepali workers shall be protected and promoted.
 Foreign employment related curriculums shall be introduced at
school/college level.
 Effort shall be made to execute bilateral agreement to return Nepali workers
those are in prison at foreign jail for foreign employment related crime and
arranged sentencing remaining period in Nepal
 Human rights activist, NGOs, international organization and networks along
with NRNs shall be mobilized against discrimination and exploitation with
foreign employees and protect their basic human rights

Unit: 8 Economic activities Lesson: Cooperative

Very Short questions:
1. What is meant by cooperative?

 Autonomous association of persons united voluntarily to meet their common economic,
social and cultural needs and aspirations through a jointly owned and democratically
controlled enterprise.
2. Full form if ICA- International cooperative association formed in 1895 A.D.
3. Father of cooperative movement of the world- British Social activist Robert Owen
4. Name few traditional practice of Cooperative in Nepal- Guthi, Dharma, Bhakari,parma,
Devali
5. Which was the first Sahakari and when was it established? – Bakhan Sahakari, chitwan, 2013
B.S.
6. When was Cooperative act enforced in Nepal- Bhadra 14th, 2016 B.S. and later amendment in
2048 B.S.. New act is effective from 2017 A.D.
7. What is the main function of cooperative act?
 To regulate and systematize cooperative enterprises in the country
8. When was co operative bank established in Nepal?- 2020 B.S.
9. How has government of Nepal regarded the Sahakari?- As the third pillar of economic
development
10. Give examples of two types of Cooperatives- Saving and Credit and Multipurpose Cooperative
11. When was Department of Cooperative established in Nepal- 2010 B.S.
12. Which country is known as the country of Cooperatives? – Denmark
13. When is international Cooperative day celebrated in Nepal? – 6th July.
14. Which is the first successful cooperative enterprise in the world?- Rochdale society of 1844
15. Name two entities established for promoting cooperatives in Nepal- National Cooperative
Development Board and Cooperative Department
16. What is the literal meaning of cooperative? - A business running together.
17. Why are cooperative called an autonomous? – It is self help organizations democratically
controlled by their members.
Short questions
1. What are the conditions for establishment of Cooperative in Nepal?

 The conditions for establishment of Cooperative in Nepal are given below:
 At least 25 members of the particular place are required
 An application to the office of Registrar for registration
 Two copies of by-law and work plan
 Detail description of share holders and the number of their shares
 Citizenship, photography and signature of all members
 There should be preliminary meeting held before applying for the registration
2. What are the principles of cooperative?
 The principle of cooperatives are :
 Voluntary and open membership
 Democratic and member control
 Autonomy and independence
 Education, training and information

 Cooperation among cooperatives

 Concern for community
3. What are the types of cooperative in Nepal? Describe them in brief.
 There are four types of cooperatives in Nepal:
Saving and credit cooperative: It works under cooperative principle and adopt policies
directed by cooperatives act. It motivates members for saving money for productive,
skillful and income generating program
Multi-purpose cooperative: It collects savings from members and use it for different
purpose and program like cooperative education, business etc.
Cooperative society licensed by Nepal Rastra bank: It has limited right of banking
transaction. It accepts saving and provide loans to its members and other persons. It
facilitates of opening account into Nepal Rastra Bank for daily transaction. It also has the
right to exchange foreign currency by obtaining license from Nepal Rasta Bank. Its rules
and regulations are supervised by the Rastra Bank.
Financial co operatives: It is huge capital oriented cooperatives. It can save and open
account to other people in addition to member. It provides housing, leasing and other type
of hire purchase loan. It is under Nepal Rasta bank supervision and classified as D
category Bank.
4. What are the major services being provided by the cooperatives in your community.
 The major services being provided in my community by the cooperatives are:
 Collects deposits and help in the capital formation
 Release loan for expenses and investments
 Invest and manufacturing
 Produce essential goods and services
 Transfer money
5. Differentiate between the cooperative enterprise and the private enterprise.
 The main differences between the cooperative and the private enterprise are:
Cooperative enterprises Private enterprise

Runs according to the cooperative act Runs according to the private enterprise act
Every person involved has equal share Only Investors share and not employees
It is fully democratic and free from The owner has supremacy over his
exploitation employees
It is Service oriented It is Profit oriented
6. What are the problems of cooperatives in Nepal and what are the possible solutions?
 The major problems of cooperative in Nepal are:
 Providing more loans to the kith and kin
 Appointing the members of same family in executive posts
 Mobilizing the fund incorrectly even against the rule. Most executives have been
found to have used the depositor’s money in housing, real estate which
cooperatives are not allowed to be engaged. Collecting deposit from ordinary and
providing loan to big enterprises
 Not getting the account audited and not maintaining the economic transparency
 A person, being involved in many cooperatives
 The operators running way by collecting huge sum of money from ordinary
people. E.g. there are more than 1600 cooperatives in Kathmandu only and they
scammed 11.41 billion Rs. of people.

 Lack professional management and plagued by the lack of adequate knowledge,

principle and practice of cooperative
The solutions to the problems of cooperative in Nepal are: (what should be done to raise
positive attitude among people about cooperatives?)
 Effective implementation of cooperative act should be done
 Discouragement for the investment in risky areas where there are no returns
 Providing facility to the depositors
 Prohibiting the sale of share out of scope
 Making the provision of effective monitoring and auditing
 Establishment of cooperative training centers at appropriate levels.
7. What is the effect of cooperatives in the socio-economic development of Nepal.( Importance)
 Cooperatives are community based, rooted in democracy, flexible having
participatory involvement which makes them all suited for socio- economic
development of the nation. The Constitution of Nepal has defined public, private
and cooperatives as three pillars of the economy which help contribute to
prosperity of the nation.
 It has great role to strengthen the economic system of the country and reduction
of unemployment. Cooperatives are mobilized in the activities of employment
generation. It is believed that around 6 million people are members of
cooperatives in Nepal in around 34,500 cooperatives and more than 60,000
people employed by cooperative directly in Nepal and among them more than
51% are females. The total share capital is 63 billion and saving worth is of Rs.
200 billion. The sector contributes to 4% of GDP of the country equal to that of
tourism industry.
 In Nepal, multipurpose cooperative are in practice which inspires the villagers for
modern agriculture system, to grow up seasonal vegetables and professional
animal husbandry. It promotes the product in the market and sale them in the
reasonable price.
 Cooperative is working for social welfare also. It is acting for the development of
leadership skills of the women in education, providing health service through
health campaign and other skill-oriented training is also arranged for rural
women. Thus, cooperative organizations are actively participating for bringing
revolutionary change in the life of the rural women.
 It has helped to develop product oriented attitude in rural society. Most people in
Nepal are dependent on agriculture and rural based. It empowers farmers,
commercializes agriculture, enhances food security, transforms socio-economic
conditions and contributes to rural development in Nepal. It is regarded as an
engine of economic growth of rural areas of the country.
 It has contributed in raising the living standard of the people and developing
entrepreneurship. Access to capital and market with equitable benefit sharing has
positively contributed to poor household. The scattered capital is collected at
local level to form high capital. It has helped for the Mobilization of means are
resources and promotion of self dependency by reducing the poverty.
8. What are the main disadvantages of cooperatives?
 The main disadvantages of cooperatives are :
 It has limited resources
 Most lack efficient management
 There is lack of secrecy

 It mostly depends on cash trading

 Excessive government interference
 There are always disputes and differences among the members
9. What are the roles played by the cooperatives for the promotion of local products?
 Today in an era when many people feel powerless to change their lives, cooperatives
represent a strong vibrant and viable economic alternative.
 People can take loan from cooperative and run small and cottage scale industries.
 Most Cooperatives provide low cost credit to purchase the equipments for
farming and household needs which enhances to market local products.
 Nepal is a country with 83% rural population most depending on agriculture for
livelihood. Being social network of likeminded people for noble purpose, it
encourages members to take a positive step towards investment and promote
local products.
 Invest in various local resource based fields such as crop farming, cattle raising,
fruit and vegetable farming and bee-keeping etc are being promoted by
cooperatives.
 They buy local agricultural and industrial product and sell them to further
markets. Some cooperatives even provide better qualities seeds, fertilizers and
pesticides to farmers.
10. Trace in short, the origin and development of cooperative in Nepal.
 The concept of cooperative is very old in Nepal. Arma Parma, MangkaKhala , Dhikuri,
Guthi, Kulayan Dewali etc were the traditional cooperatives. After the establishment of
democracy in 2007 B.S., people as well as government made effort towards improvement
of rural farmers’ standard of living. For this purpose Cooperative department was
established in 2010 B.S. ‘Bakhan Sahakari’, the first cooperative of Nepal was
established in 2013 B.S. in Chitwan. Cooperative society act was passed in 2016, Bhadra
14th. First cooperative bank was established in 2020 B.S. After the establishment of
Nepal cooperative board in 2048 B.S., which marks the official registration of
cooperatives under the law of Nepal, the trend of opening cooperatives has rapidly
increased.

Unit : 8 Economic Activities Lesson: Financial education

Very Short Questions
1. What is finance?
 It refers to the science of money management. It is a field that is concerned with the
allocation (Investment) of assets and liabilities over space and time, often under condition
of risk or uncertainty.
2. In how many categories is Finance divided?
 It is divided into 3 categories- Public finance, corporate finance and personal finance
Public finance- Public spending, budgeting, source of income etc.
Corporate finance- Source of funding, capital structure, cash, inventory debtor etc.
Personal finance- Transfer of family wealth, development of saving plan for health, education,
financing real state, buying insurance etc.
3. What is financial education?
 It is the understanding of various financial areas that includes the knowledge of making
appropriate decisions about personal finance such as investing, insurance, real estate,
budgeting, tax etc.
4. Which is the central bank of Nepal? When did it start to issue notes?
 Nepal Rastra bank is the central bank of Nepal. It started to issue notes from 2016 B.S.
5. What is automated teller machine (ATM)?
 A computerized device that provides the clients of the bank with access to financial
transactions without the need for a cashier or bank teller
6. What does ATM do perform?
 ATM can dispense cash; take deposits, transfer money between bank accounts and other
financial services
7. What is credit card?
 An electronic card issued by the bank that gives the holder an option to borrow funds,
usually at shops.
8. What is bank account?
 It is a type of financial account offered by a financial institution in which the customer
can deposit, save and withdraw money.
9. Name three types of accounts.
 Fixed account, saving account and current account
10. What is currency?
 It is the medium to exchange and the determiner of value, and it is a way to make
payment and safe way to store wealth.
11. What is security?
 A financial instrument issued by a company or government agency to collect or raise
certain amount.
12. Define share.
 A certificate giving the person or company listed a portion of ownership in a stock,
mutual fund or some other investment vehicle.
13. What is SMS Banking?
 It is a form of mobile banking used by financial institutions to send notifications or alerts
to costumer’s mobile phones using SMS messaging.
14. Define e-banking.

 It is an electronic payment system that enables customers of a bank or other financial

institution to conduct a range of financial transactions through the financial institution’s
website.
15. What is piggy bank?
 Money saving material at home made from wood, clay, tin etc.
Short questions
1. Write down the importance of financial education.

 The importance of financial education are given below:
 Make people understand the importance of money
 To become responsible in the mobilization of capital
 To find out the right area of investment
 To pay tax on time and know the negative impact of tax invasion and tax
avoidance
 To make balance between consumption and saving
 To ease human activities
 Inform about risks and make responsible choices in an even more sophisticated
financial market
 To help ensure consumers save enough to provide an adequate income in
retirement while avoiding high level of debt that might result in bankruptcy
 Navigate to understand today’s complex market
2. What are the three types of bank accounts? Describe each in short with their
advantages.
 There are three types of bank accounts. Their short description is given below:
Current account: It is a transactional non-interest bearing account where in a deposit is
placed with the bank for an unspecified period of time and the depositor can withdraw or
transfer the funds when ever required. Facility of cheque, debit, online banking service
are provided and it can be opened in both local and foreign currency.
Benefits: Convenience and security
 Access to online banking service
 Any branch banking service
 Free cheque book
Saving account: It is a transactional interest bearing account where in a deposit is placed
with the bank for an unspecified period of time and the depositor can withdraw or
transfer fund whenever required.
Benefits: Easy to open and use
 Opened in zero balance
 Interest can be obtained
 Doesn’t need more as minimal balance
 Any branch banking service
Fixed account: The savings account at a banking institution from which money can’t be
withdrawn for a term of period of time pre fixed is known as fixed deposit account. This
period is known as the maturity date.
Benefits: Yields higher interest
Suitable for those who wants to save money for fixed term.

3. Write about the financial system in Nepal.

 Nepal bank limited was established in 1994 B.S. which traced the origin of modern
financial system in Nepal. Nepal’s financial system consists of Banking and non banking
sector. Banking sector consists of 1 central bank and 31 commercial banks in Nepal. Non
banking sector consists of 7 Developmental banks, 59 financial companies and 35 micro
finance developmental banks, insurance companies, employees’ provident fund etc.
Nepal Rastra bank is the central bank of Nepal which carries out activities like issuing
currency and managing international reserves.
Commercial bank refers to that bank which accepts deposits and grants loan against
securities.
Development bank is established for the development of various sectors like agriculture,
industrial etc. by providing financial and technical assistance.
4. What is bank account? What are the things required to open a bank account?
 Bank account is an arrangement with bank for transaction of money. It is the details of an
individual or organization registered in the bank for financial transactions.
The things required to open a bank account are:
 Identification document like citizenship, passport, etc.
 Recent passport size photographs
 Name of beneficiary
 Estimated income statement
 Signature of account user
 Sketch of map to user’s home or residence
 Know your customer (KYC) details with supplementary profile
 Guardian citizenship, photo and an application on case of minors
5. What are the benefits of saving habit?
 We must gain control over our money or the lack of it will forever control us. Saving
money can help us to get money when we need it . The advantages of saving habits are:
 It helps in the capital formation and expansion of entrepreneurship
 It helps to control expenditure and extravagance
 Saving maintained for interest is a kind of investment
 It helps us in emergency case
 It gives securities to one’s earned property
 It helps us to become financially independent
6. What are the advantages of E-banking?
 The advantages of E- banking are :
 It discourages people to carry cash
 It is less time consuming
 It helps to transfer money immediately within a click
 It can be access anywhere and anytime with the help of internet
 It gives permanent access to bank
 It is safe and secure method with lower transaction costs
7. What precaution should E- banking customer make?
 The following precautions should be taken by the E- banking customers
 Never give your cards, account number to anybody
 Update your anti-virus program regularly
 Don’t use public computer for e-transactions
 Don’t give your information in the websites which you don’t know

 Before visiting any website, check the certificate and don’t continue unless you
feel it is from the trusted site
 Use passwords which are difficult to guess
 Regularly check your account status. If you feel something is wrong, let this be
known to your bank
 Use password which are difficult to guess
8. What are the advantages of having a bank account?
 The advantages of having a bank account are given below:
 It encourages financial discipline
 We don’t need to worry about the safety of the earned money
 Payments of various kinds of bills can be made through the bank account
 It encourages us to save money regularly
 Reviews of income and expenditure can be made by studying bank statements
 Travelers don’t have to carry huge amount of cash
 Regular interest can be earned.
9. Which bank is called the Bank of the Banks? What are its functions?
 Nepal Rastra Bank is known as the Bank of Banks. The functions of it are:
 To issue currency
 To provide banking service for all other banks
 To enforce monetary and financial policy of the state
 To render financial advice to the government
 To maintain financial stability in the country
 To monitor financial activity in the country.
10. List out some of the advantages and disadvantages of ATM .
 ATM is the computerized device which provides financial services to the customers.
The advantages of ATM are:
 Access bank at any part of the world offering convenience of multiple locations
 Allows to withdraw cash anytime
 Doesn’t have to queue for cash and enhances promptness
 Checking balance and printing statement can be made additional to cash
withdrawal
 Doesn’t let the user to go into debt as only the amount in balance can be
withdrawn
 It is protected by pin keeping the money safe
The disadvantages of ATM are:
 Only small amount can be withdrawn at a time
 High risk of theft of ATM card
 Encourages being extravagant as money can be withdrawn and spend anywhere
 Charges additional fees for it’s issue , renewal or other transactions
 One can’t with hold payment in the event of dispute as payment is made
immediately
 Lost personal touch with the bank
 It may not access to rural areas to all the people
11. Differentiate between debit and credit card.
 The difference between debit card and credit card is given below:
Debit Card Credit Card
Allows to withdraw an amount already Allows to withdraw an amount first & pay

deposited it later
Money withdrawn is deducted Money used is added to cardholder’s
account as a loan to be repaid
Can be used for shopping or payment and Used for paying at stores, restaurants, or
for withdrawing too online payment
Cash is obtained by users Cash can’t be obtained by users
Payment is made before withdrawal Payment of used money is made later
Interest is not charged Interest is charged
Safer for issuer and unsafe for user Safer for the user and not safe for the issuer

Unit : 8 Economic Activities Lesson: Financial instruments
Very Short Questions
1. Financial instrument: The devices used in circulation and transactions of money

2. Clean note policy: Policy adopted by Nepal Rasta Bank not to write dirty and stich
on the notes to make it safely handed.
3. Secured loan: Loan obtained with collateral( Dhito)
4. Unsecured loan: Loan obtained without collateral. e g. Credit card, over draft or
bonds
5. Demand loan: Is a secured loan but can ask for repayment anytime
6. Hundi : Informal and illegal alternative remittance transfer channel
7. Forex rate: is a particular value of a nation’s currency in terms of it’s capacity to
exchange with foreign currencies
8. Bonds: Financial device used by government or companies to raise money and
finance a company
9. Stock market: Place where shares of public listed companies are traded
10. Stock exchange: organized market for the trading of financial securities. It is called
share market.
11. Two examples of security in finance: Bank note and debenture
12. Safe note: Is a paper money. It is a convertible security that like a warrant, allows
the investor to buy shares in a future priced round.
13. Bank Loan: It is the money taken from the bank which has to be returned after
certain period with interest.
14. Objective of clean note policy- Is to give good quality currency notes and coins to
the citizens of the country by avoiding the circulation of spoiled notes in the
economy.
15. IPO stands for Initial public offering which is the very first sale of shares issued by a
company to the public. This is also known as primary share.
16. Secondary share: Refers to the existing shares of common shares that are sold to
investors in offerings. Selling of these shares may be from existing share holder.
17. Debentures: Is a type of debt instrument unsecured by collateral used to raise short
term capital for upcoming expenses. Debentures are bonds. Whenever a bond is
unsecured, it is called debenture. So, all debentures are bonds but all bonds are not
debentures.
Short Questions
1. Why should we handle the note safely?

 Nepal Rastra Bank has brought clean note policy in order to bring clean notes in
circulation withdrawing soiled and mutilated notes from the market. We shouldn’t write
or scribble on notes, tear, excessive folding , use sticky tape or staples, etc. It should be
handled safely because:
 Notes can not be stored for a long time and have to be replaced sooner
 It may not be accepted by everyone
 It tarnishes the image of the state
 It may not be accepted by everyone
 Reprinting them will cost a lot

 It defame our civilization, culture, custom and habit

2. Write down the importance of clean notes.
 The Importance of clean notes are given below:
 It conveys the identify to our country
 It reflects our nature, society, art and culture
 It values the image of the state
 It increases the importance of ATM
 It doesn’t carries a whole bunch of genetic materials from micro-organisms-
bacteria and viruses
3. Why should be loan be paid back on time and utilized properly?
 We should utilize the loan properly because:
 Finance may collapse and can’t repay the loan and will be bankrupt
 If can’t be repaid on time, fine will be charged
 When lender blacklists, borrower may lose social prestige and financial trust
 Mortgaged property may be confiscated by bank and receivable amount may be
recovered by auction of mortgaged property.
4. Why doing transaction through ‘ Hundi’ is illegal?
 Hundi is illegal and informal alternative remittance transfer channel. It has no reliability,
validity and legality because of the following reasons:
 It is not permitted by government
 It is less productive investment
 Client is often charged more than the formal transaction
 Risky regarding the safety of the money
 Doesn’t contribute to national economy by increasing tax evasion
 Negatively affects governance and exchange reserves
5. What is foreign exchange (Forex)? Why is it important?
 Foreign exchange is the exchange of one currency for another. It is the market in which
currencies are traded. It is the largest financial market in the world.
 It has huge trading volume becoming the largest trade assets
 It has continuous operation for 24 hours
 Low margin of relative profit
 It has geographical dispersion. It is huge in size and operates across different
time zones
 Forex market provides an environment with low transaction costs
 It provides flexibility to marketers as there is no restriction on the amount that
can be traded
 There is high liquidity. Liquidity is the ability of an assets to be converted into
cash easily
 There is potential profit from rising and falling prices.
6. What is security bond? Why it is important?
 Securities include bonds, debentures, notes, shares and warrants. Bond is also a type of
security. Bond is debt instrument which is a fixed income security used by government or
companies created for the purpose of raising capital. Its importance are:
 Bonds are often liquid which is converted into cash easily
 Bond holders enjoy a measure of legal protection. If a company goes bankrupt,
bond holders will get recovery money

 Shareholders gets dividend. It is a part of profit distributed to its share holders

either in the form of cash or share
 It can also give capital gain and bonus share
 It can be used as assets for loan as banks accept them as security
 Bonds can be useful for those who want to reduce their tax.
7. Differentiate between the bond and loan.
 The differences between the bond and loan are given below:
Bond Loan
Type of loan called debt security Type of debt somebody burrows from
lender
Have a market where it can be sold or Is not usually tradable
traded
General public is lender and companies and Generally public is burrower
government are burrowers
Extra charges/interest is n’t charged to the Interest is charged
burrower
Purchased as an investment as expected to Doesn’t bring gain itself as used as
bring gains expense or to start something
8. What is share? Differentiate between ordinary and preference share.
 Share is the financial security issued by a joint stock company as a means of raising long
term capital. The shareholders of a company are its legal owners and are entitled to share
in its profit. The differences between ordinary and preference share are:
Preference share/ Right share Ordinary share
It has low gain and low risk It has high gain and high risk
Share holders haven’t the right to vote Share holders have the right to vote
Receives their dividend distribution first Receives their dividend at last
Company uses specific rate to calculate the Has no specific dividend rate
dividend on preference share
Share with privilege where it carries a right Standard shares with no special rights or
that gives the holders preferential treatment restrictions
when annual dividends are distributed
Issued at lower price than the current Is not issued at lower price than the current
market value market price
9. What are some of the advantages and disadvantages of share?
 The advantages of share are:
 Share of the company which is listed in the stock exchanges have the benefit of
anytime liquidity
 At times, companies decide to give bonus share to its shareholders which is free
share
 The share holders get ownership in the company and therefore can exercise
control
 Investor is entitled to receive the dividend from the company
The disadvantages of share are:

 There may be crash in share price
 Company may go into liquidation
 When share demand is high, we may not get chance to buy or sell it
 It is not fixed and always fluctuates making the investment always venerable

 Dividend is uncertain
 Share holders have limited control over their share value
10. What are the materials required for applying share?
 The materials required for applying shares are:
 Dematerialized account number
 Photocopy of citizenship and recent passport size photo
 Address of the applicant with Grand Father’s and Father’s name
 Authorized signature
 Bank account if cheque is issued
11. Name different types of financial securities
 Bonds
 Notes
 Shares
 Debentures

Unit: 8 Economic activities Lesson: Insurance
1. Define insurance.
 It is the contract between two parties in which one party promises to pay a certain sum of
money as premium over the loss of life of physical properties and another party agrees to
compensate in case of happening the events. It is a device which provides financial
compensation to those who suffer from misfortune of specified loss, damage, illness,
death, accident, fire and so on.
2. When was Mal Chalani and Beema Company formed?
 2004 B.S.
3. When was Mal Chalani & Beema Company converted into Nepal insurance and transport
company?
 2016 B.S.( Now named as Nepal insurance)
4. When was National company Company act was passed?
 2025 B.S. 1ST Poush
5. When was Rastriya Beema Sansthan established?
 2025 B.S.
6. When was Beema Samiti( Insurance Board) established?
 2049 B.S.
7. Why was Beema Samiti established?
 It is an autonomous body established to develop, systemize, regularize and regulate the
insurance business of Nepal in 2049 B.S.
8. How many insurance companies are there in Nepal?
 39. Among them 20 are life insurance and 19 are non life insurance
9. What is Rastriya Beema Sansthan?
 It is the state owned insurance company established on 1 st poush 2025 B.S.
10. What is insurance policy?
 It is the agreement paper between the insured and the insurer. Description of risk,
insurance premium, detail of injured, maturity period, terms and conditions etc. are
included in it.
11. What is insurance premium?
 It is the amount of money that an individual or business must pay for an insurance policy
12. Who is beneficiary?
 It is a certain person entitled to receive money or property under an insurance policy.
Primary beneficiary is the person who will receive the proceeds of the life insurance
when the insured person dies
13. What is life insurance?
 It is a protection against financial loss that would result from the untimely death or
disability of an insured
14. What is non life insurance?
 It refers to bearing the customer’s risk against the loss of the property
15. What is life guarantee?
 Guaranteed life insurance or guaranteed acceptance life insurance is a life insurance
policy with no health qualifications. It generally comes with higher premium and low
benefits since insured is older
16. Who is eligible to be the member of life insurance?

 People aged between 16-65 years

17. What is third party insurance?
 It is an insurance policy purchased for purchased against the claims of another. E.g.
Automobile insurance.
Short Questions
1. What are the benefits of insurance?

 Insurance is necessary evil at best. It is one of the best social devices ever conceived of
without it, we would not be able to enjoy the quality of life. The benefits of insurance are
given below:
 As every premium needs to be paid before or on the due date, insurance
encourages force saving
 It provides compensation against losses or damages
 It makes life more certain and secure by promoting risk control activity
 Under insurance, dividend is also obtained in addition to the insured amount
 With the sum of money obtained at the completion of the insurance term,
investment can be made on productive fields
 Even loan can be borrowed from the insurance company for the amount of
money already paid already
 It is like pension, pay when you are able and utilize when you are unable
 It helps the family from the financial crisis by providing them the death benefits
if the insured is dead. Death benefits are tax free.
 It reduces social burden
2. Why do you think insurance business is getting more popular in modern time?
 The insurance business is getting more popular these days because of the following
reasons.
 There are greater risk of illness, accident, fire, war and other disasters. People
want to be secure and confident from these dangers.
 People are engaged in diverse types of jobs which are serious and risky. They are
more conscious and want to make their life more secure
 Diverse and attractive schemes and policies are being introduced by insurance
companies which are abundant in number
 Governments are also supporting insurance programs
 Expensive medical services have tend to think about secure medical services
3. Why Nepal government has started Health Insurance?
 Nepal government has started Health Insurance. Citizen has to pay premium of Rs. 2500
annually and will be insured up to Rs. 50,000. If the family is unable to pay the
premium, the government will pay it. The insured shall enjoy services like nutrition,
vaccination, OPD, family planning, safe motherhood etc. It has started from Kailai,
Baglung and Illam and is extended upto 24 districts now facilitating 3 lakhs people till
now. It was done because of the following reasons:
 Every citizen has the right to get basic health care and have equal access to
health. It is guaranteed in the fundamental rights in the constitution.
 Ensuring good health and well being by 2030 A.D. is goal number 3 of the
sustainable development which Nepal wants to achieve
 To give access for preventive, curative and rehabilitative health services
 For the universal health coverage, government has adopted the vision of overall

health improvement of people through social health security.

4. What are the types of insurance in Nepal?
 The types of insurances in Nepal with their description is given below:
Life insurance: Types of coverage that pays benefits upon a person’s death or disability. Person
must be aged between 16-65 for this insurance.
Non- life insurance: It is also known as the general insurance which provides compensation
depending on the loss of physical properties. It is normally done for a year and must be renewed
again
Third party insurance: It is the policy that ensures for the protection of the third parties
involved in an incident. Eg. If you hit someone with bike, cost of damages of other bike would be
covered if you have paid the third party insurance
Health insurance: It ensures your health when you are sick and you don’t have money for
treatment.
5. What are the points to be considered while doing insurance?
 The points to be considered while doing insurance are:
 Should be clear about the aim of doing insurance
 Clearly state the name of your primary beneficiary
 Don’t provide any wrong information
 Be careful about whether you will be able to pay the premium in required time
 Read the insurance document carefully and contact the agent in adequacy
 Know if the insurance agent is registered in the insurance board
 Take the cash receipt after the payment of your premium
 Always inform your family members about the insurance you have done
 Keep all the insurance documents safely
6. What is the provision of non-life insurance in Nepal? What is the importance of Non-life
insurance in the context of Nepal?
 There are 20 non life insurance firms in Nepal. 1 billion paid up capital will let you start
it. Crop and breeding insurance 2069 is issued as per agricultural policy 2061. 75% of the
premium of the insured amount is borne by the government and only 25% is taken from
the farmers. 90% amount of the insured crop is provided to the farmer as compensation to
crop loss. In animal insurance whole amount of security is given to the farmers as
compensation amount when the animal dies. It is important in the context of Nepal.
 To give high priority to agricultural sector which is the backbone of the country’s
economy
 To encourage farmers to expand their agricultural activities as they are de
motivated by the damage caused by natural disaster
 To give them confidence as it compensate for the loss of damaged crops
 To reduce the negative effect of food supply and trade balance.
7. Differentiate between Life insurance and non-life insurance.
 The differentiate between Life insurance and Non Life insurance is given below:
Life Insurance Non life insurance
It is related to human life To protect an individual against losses &
damages other than covered by life
insurance
Long term investment and requires periodic Usually for a year and must be renewed
payments every year
Comparatively high premium Less in comparison to life insurance
Risks covered are premature death, income Risks covered are property loss, damage of

during retirement, illness etc. crops etc.

It is a form of investment and has a It is a contract of indemnity and has no
component in saving such savings
8. Most people aren’t interested to buy insurance. Why?
 Most people aren’t interested to buy insurance because:
 Benefit is received far away in future
 People don’t want to hear about death or illness
 People aren’t conceived about its benefit
 Agent’s continuous follow-up make them fed-up( Insurance agents never retire,
they just expire)
 Expensive people life style or poverty unable to pay the premium
 Lack of trust among people
9. Name any five insurance companies of Nepal.
 The five life insurance companies in Nepal are:
 National life insurance co. Ltd.
 Rastiya Bima Sasthan
 Nepal insurance co. Ltd.
 Everest insurance co. ltd.
 Asian life insurance co. ltd.
10. What are the types of life insurance?
 The types of life insurance are:
 Whole life insurance: The insurance which is done for a long period covering
the whole life insured. The insured doesn’t get direct benefit from it as it is given
to the beneficiary after the death of the insured.
 Endowment life insurance: The insurance which is done for fixed period of
time such as 5 years, 10 years or 20 years.
 Anticipated endowment life insurance: Contract between the insured and the
insurer in which a part of the amount is paid on installment basis to the insured.
E.g. If the life insurance is made for 15 years, the insured will get the first
installment of 25% after 10 years and remaining 50% with bonus at the end of
policy period of 15 years.
 Short term life insurance- It is insurance policy done for a short duration
 Pre-paid life time insurance- Insurance where premium is made in advance for
insurance company.
 Life time insurance- Policy which is guaranteed to remain in force for the
insured entire’s life time.
11. Write down the historical back ground of Development of Insurance in Nepal.
 Mal Chalani and Beema Company was established in 2004 B.S. and converted into
Nepal insurance and transport company private limited in 2016 B.S. now named as
Nepal insurance. National insurance company act was passed on 1st poush 2025 B.S.
and in the same year and same date Rastriya Beema Sansthan was established. It was
established as a private company in 2024 B.S. and later converted into public company. It
is the state owned insurance company. It started non life insurance from 2024 B.S and
life insurance from 2029 B.S. Beema Samiti ( Insurance Board) was established in
2049 B.S.

Unit: 8 Economic activities Lesson: Revenue and taxation

1. What is revenue?
 The source of the government income which acts as the primary financial resource for
functioning of the government. It is the source of government expenses.
2. Write down the two types of tax revenue.
 Tax revenue and non tax revenue
3. What is tax?
 The mandatory financial charge which government collects from its citizens as per the
law of the state to fund various public expenditure is tax .
4. What is tax revenue?
 The income that a particular government makes through taxation is tax revenue. It is
divided into direct tax and indirect tax.
5. What is non tax (special) revenue?
 Revenues collected from sources other than the tax like gifts, donations, fees, penalties,
punishment etc.
6. What is direct tax?
 The tax levied directly on the income or capital of a person or organization. Eg. Income
tax, land registration, sales tax etc.
7. What is indirect tax?
 The tax that is not directly imposed on a person and can be shifted to others is known as
indirect tax. Eg. Value added tax.
8. When was VAT system introduced in Nepal?
 2054 B.S., Mangsir 1st
9. When is the tax day celebrated in Nepal?
 Mangsir, 1st
Short questions
1. Differentiate between the direct and indirect tax

 The differences between Direct and Indirect tax are:
Direct tax Indirect tax
Burden of tax falls flatly on an individual Can be shifted to another person
and can’t be shifted to other person
Tax can be evaded Tax can’t be evaded
Helps in reducing inflation Enhance inflation
It is progressive It is considered regressive
More administrative cost Less administrative cost
Enhance consumption and discourage Discourage consumption and encourage
saving saving
2. Why should we pay tax to the government?
 We should pay the tax to the government because of the following reasons:
 Tax is the main source of national revenue. It is the source of people’s
contribution in national development.
 It helps the government execute development and welfare programs for its
citizens

It reduces economic gap between the higher income and lower income groups
Tax collected by the government is invested in the welfare of all people equally
It encourages for the production of essential goods, use domestic products and
cut off the use of luxurious and harmful goods
 Helps in removing economic disparities by introducing the tax exemption policy
to encourage industries that operate in backward region
 It helps to carry out public delivery system efficiently and ultimately reducing
poverty and unemployment problems.
3. What are the advantages and disadvantages of Direct tax?
 The advantages and disadvantages of Direct tax are:
Advantages Disadvantages
It is progressive and economic Tax cheating and lack of honesty as it
is evaded
Elastic & flexible as rates can be Limited participation of people
increased or decreased
Arouses awareness among tax payers Encourages corruption and bribery
Certain and democratic as amount to Rate and exemption limit are arbitrary
pay is fixed in advance as it is fixed by tax raiser as they wish
Helps in controlling inflation It pinches the payer and gives mental
pressure due to uncomfortable system
Makes people responsible as they are It is not flexible
direct payers
Reduces consumption and encourages Difficult in tax administration
saving
4. What are the advantages and disadvantages of indirect tax?
 The advantages and disadvantages of indirect tax are:
It has unlimited participation It is uncertain
It is flexible and honesty based It lacks equality as even poorest pay
Easy in tax administration It is weak to aware tax payers
It is non evadable It can contribute inflation eg. Tax
increase on petrol will increase price of
all goods
It is based on social justice as tax is It is regressive in nature
imposed differently on daily goods and
luxury goods
Discourage consumption of tobacco,
alcohol
Consumer has choice to pay or not as
they can avoid by not using the goods
they don’t want.
5. What are the duties of a tax payer? ( Assessee = Tax payer)
 The duties of tax payer are:
 To get registered with the department of revenue
 To know his/her tax reporting obligations
 To obtain permanent account number (PAN) and quote it in all
documents and correspondence
 To pay tax on time

 To issue tax invoice

 To maintain record and keep account of their transaction
 To preserve the record safely until the transaction period is over
 To inform Inland Revenue department in case of any change in address,
telephone number, reorganization of partnership etc.
 To allow the tax officials to examine his/her business record and stock on
hand.
6. Why excise duty is the main source of revenue?
 Excise duty is charged on goods produced within the country and also on import
of certain goods from outside the country. It is the main source of government
revenue.
 It is not easily evadable. So contributes high on the national revenue
 High tax is imposed on socially damaging and morally objectionable
things like prostitution, smoking, alcohol etc.
 Health risk and environment damaging goods are taxed high than other
goods
 It is charged on their production and sale and not on consumption
 It promotes the national goods and discourages import as luxurious
goods and imported goods too charged excise duty.
7. What is income tax? What are the features of it? How can it be minimized?
 Income tax is the direct tax imposed on the income of an individual and
organization. The characteristics of income tax are:
 It is the oldest and traditional tax which was started from England in 12 th
century
 Non- profit organizations, political parties, and charity organizations are
exempted from it.
 It is direct tax levied on the income of an individual or a corporate office
 It is based on democratic and equity principle.
It can be minimized by investing our income in following things:
 Provident fund deposit
 Citizenship investment trust deposit
 Insurance up to Rs. 20,000 per year
 Medical bill up to Rs. 5000
8. What are the problems and challenges of tax system in Nepal?
 The problems and challenges of tax system in Nepal are:
 There is marginal high tax rates in Nepal
 Provision of Low tax elasticity in Nepal
 There is Poor voluntary compliance from the citizens
 There is high leakage in tax collection
 The income tax laws are rigid
 The poor governance has led to inefficient and corrupt tax administration
 No consolidated record of land and property
 There is lack of equity and transparency
 Government is unable in promoting tax payer awareness
9. What are the major features of tax revenue?
 The major features of tax revenue are:
 It is raised by an authorized body, often by the government

 It contributes to the state and fund and is the main source of state
treasury
 It is a compulsory payment levied on people
 It follows certain legal provisions
 Tax differs in different goods, states, etc.
 It is flexible and changes as per the necessity
 It is based on the policy of welfare and justice.
10. What are the items that are listed on prohibited exports from Nepal?
 The items which are listed on prohibited exports from Nepal are:
 Archeological and religious arty-crafty.
 Controlled wild life
 Narcotics
 Ammunition and explosives
 Industrial raw materials and timbers and logs
11. What is Value added tax (VAT)? What are the advantages and disadvantages of it?
 The indirect tax levied on the increased value of a product or service added at
each stage of its production or distribution, paid by the consumer is called Value-
added tax. It is also known as consumption tax. It is charged whenever goods and
services change hands in the course of production, distribution and final sale to
the consumer. The practice of VAT came from France and it was introduced in
France in 2054 B.S. The businessperson who has a transaction exceeding Rs.50
lakhs a year has to get registered compulsorily with VAT. The VAT rate in Nepal
is 13%.
The advantages and disadvantages of VAT are given below:
It increases revenue Increases inflation and price of goods
Tax system becomes transparent It is difficult tax system to administer
It reduces cheating It is not neutral because of tax free
system and 0% rate goods
There is no double taxation High possibility of leakage
It increases the bases of taxation It is costly as based on full billing
system
It encourages export
It is based on value added and not on
total price
12. What are the constitutional provisions of collecting taxes and revenues and their
utilization in federal system? Explain.
 The constitutional provision for collecting taxes and revenues in our country is
mentioned below:
Power of Federal or Central government to collect taxes and revenues –
Customs, excise duty, Value added tax, corporate income tax, individual income
tax, remuneration tax, passport fee, visa fee, tourism fee, service charge and fee
and penalty etc.
Power of State or provincial Government to collect taxes and revenues- House
and registration fee, motor vehicle tax, entertainment tax, advertisement tax,
agro- income tax, fees and penalty etc.

Power of Local level Government to collect taxes and revenues: Local tax like
wealth tax, house rent tax, land and building registration fee, motor vehicle tax
and other taxes like advertisement tax, land revenue collection, business tax etc.
All these three level of government can collect service fee, charge, penalty and
royalty from natural resources and tourism fees which are mentioned in their
concurrent powers.
13. What is custom duty? What is the importance of it in the context of Nepal?
 Custom duty is the amount paid by the person who exports or imports goods and
services.
 There are 30 custom offices in Nepal which accounts for the 20% of total
tax revenue of the country.
 It also has helped to control the smuggling of valuable items like
controlled wild life, our archeological arty crafty and industrial raw
materials.
 Since, the export is generally free of custom duty, it has promoted
export.
 It also enhances the saving of foreign exchange
 It also helps to reduce the deficit in the balance of trade and the balance
of payment.
14. What are the benefits of income tax filling?
 Paying income tax has several advantages.
 It saves you from penalty and prosecution
 It will give you benefit in eligibility to obtain loan
 It helps you to apply for Visas while showing bank statements
 It will help you obtain government tenders
 The government rewards the good and the highest income tax fillers
every year.
Long questions
1. Describe the current (Prevailing) Tax system in Nepal.

 The current Tax system in Nepal are given below:
Value added tax (VAT) : The indirect tax levied on the increased value of a product or service added at
each stage of its production or distribution, paid by the consumer is called Value- added tax. It is also
known as consumption tax. It is charged whenever goods and services change hands in the course of
production, distribution and final sale to the consumer. The practice of VAT came from France and it was
introduced in France in 2054 B.S. The businessperson who has a transaction exceeding Rs.50 lakhs a year
has to get registered compulsorily with VAT. The VAT rate in Nepal is 13%.
Income tax: It is the direct tax imposed on the income of an individual and organization. It is the oldest
and traditional tax which was started from England in 12th century. Non- profit organizations, political
parties, and charity organizations are exempted from it. It is direct tax levied on the income of an
individual or a corporate office. It is based on democratic and equity principle.
Excise Duty: (Sin Tax / Green Tax): Excise duty is charged on goods produced within the country and
also on import of certain goods from outside the country. It is the main source of government revenue.

Socially damaging and morally objectionable things like prostitution, smoking, alcohol etc. are charged
high taxes. It also includes the tax of health risk and environment damaging goods. SO it had not only
economic significance but also has larger social accountability. It is charged on their production and sale
and not on consumption. It promotes the national goods and discourages import as luxurious goods and
imported goods too charged excise duty. It is generally levied at higher rate. In Nepal it is about 40% in
general cases.
Custom Duty: It is a tariff or tax imposed on goods when transported across international border. Every
country established its administrative unit at the border area to collect the tax and revenue. In Nepal there
are 30 custom offices and they contribute around 20% of the total revenue of the country. So, it has
greater economic significance. Different goods are imposed different tax rates as per the custom
regulations and some items are even prohibited from exporting or importing.

Unit : 8 Economic activities Lesson: Consumer rights

Very short questions:
1. What is consumer protection?

 It refers to the measures adopted for the protection of consumers from dishonest and
unethical practices by the business persons and to provide them speedy and effective
redress of their grievances.
2. Who is a consumer?
 Consumer is a person or firm that buys goods and services for personal or organizational
use. This is the group which bears the cost of entire production.
3. What is consumer right?
 It refers to the reference to a body of law that pertains to things the producers of goods
must do to protect customers from harm.
4. What is consumer international?
 It is the global organization to campaign voice of consumers spreading over 120
countries.
5. When is the world consumer day celebrated and why?
 On 15th March as it was the day when USA’s first law for consumer right was enacted in
1963 A.D.
6. When the United Nations guidelines for customer protection did come?
 16th April, 1985 A.D.
7. When did the customer protection act come in Nepal and when was it enforced?
 It came in 2054 B.S. and it was enforced from 1st Baisakh 2055 B.S.
8. What provision is there is our constitution regarding consumer right?
 Article 44 of our constitution has mentioned Consumer right as the fundamental right and
it states: “Every consumer shall have the right to obtain quality goods and services and a
person who has suffered injury from any sub standard goods or services shall have the
right to obtain compensation according to the law.”
9. What provision is made in the Consumer Protection act 2054 for the right of the consumer?
 It entitles a consumer to file a complaint with a related government agency for
compensation within 35 days if he/she suffers a loss or damage of any kind of sub
standard goods or services.
10. What is consumer education?
 The education given to consumers about various consumer goods and services, price,
standard trade practice as well as their rights and duties of consumers.
Short questions
1. What are the things to be mentioned in the products?

 The things to be mentioned in the products are:
 Name, address and the registration number of the products
 Ingredients of manufactured goods, quantity and weight
 Quality of consumer goods whose quality has been determined
 Method of consuming and possible impact of such consumption
 Price, batch number, production date and expiry date of consumer goods
 Warranty period, tested mark and other required information in electronic and
machinery goods

 Protection and safety measures in inflammable, dangerous and fragile goods.

2. What are the consumer responsibilities?
 It is the responsibility of every consumer to protect and promote the consumers’ right.
The responsibilities of consumer are given below:
 Never buy any underweight goods
 Always check the manufacturing and expiry date and never buy the expired
goods
 Be careful while buying goods that are claimed as of high quality
 Inform the authority concerned if you are over charged
 Identify the persons/institutions that violate the consumers’ rights and make them
publicly known
 Be aware of the unregistered and illegal entity who claim to provide services to
the general public
 Never use low quality and unhygienic food and commodities.
3. What are the objectives of consumer protection act 2054 B.S.?
 The objectives of consumer protection act 2054 are:
 To safe guard the health and comfort of the consumer
 To prevent the adulteration of the food stuffs with undesirable elements
 To prevent the change of any originalities and maintain quality standard
 To strictly prohibit selling, distributing, storing and producing low quality goods
4. What is the importance of consumer education?
 The education given to consumers about various consumer goods and services, price,
standard trade practice as well as their rights and duties of consumers. It’s importance
are:
Makes people informed about their rights and duties as consumers
Offers them opportunities of proper choice of goods and services in markets
Makes them alert and conscious while purchasing goods and services
Informs them about the rules and regulations, acts and laws enforced by the government
in this regard
Encourages consumers to complain for compensation against the damages and losses
caused by the utilization of goods and services of substandard quality
To foster competitive business environment
Helps people obtain maximum satisfaction as consumers and protect their rights and
interests
To maintain socio-economic justice and live a dignified life.
5. What are the efforts made in Nepal for the protection of consumer rights?
 The efforts made in Nepal for the protection of consumer rights are given below:
 Consumer protection act was enacted in 2054 B.S.
 Food act was introduced in 2023 B.S.
 Essential commodities control act was introduced in 2017 B.S.
 Drugs act was enacted in 2035 B.S.
 Consumer right is enlisted in the fundamental right. Article 44 states that each
consumer has a right to quality product and services.
6. What are the rights guaranteed by the Consumer protection act 2054 B.S.? or, what rights
do you enjoy as a costumer?
 The rights given by the consumer protection act 2054 are:
 Right to protection of life, health and property from harmful consumer goods

 Right to be informed about price, quantity and quality of consumer goods in

order to be protected from mal -business practices.
 Right to choose the goods and services at competitive prices
 Right to be assured on hearing by appropriate authority on consumer protection
 Right to hearing and compensation
 Right to consumer education
7. Despite having consumer protection laws in Nepal, the consumers have been still widely
victimized. What might be the factors responsible for it? What are the possible solutions for
it?
 The factors responsible for the victimization of consumers in Nepal are:
 High illiteracy reducing awareness among people
 Poverty and unemployment of people forcing them to consume cheaper items
 Consumer’s negligence about their right
 Rampant traditional business and lack of brand consciousness among people
 Open boarder with India and presence of black market corrupt tax and custom
officers
 The lack of good governance and reluctant attitude of the government agencies to
effectively monitor, supervise and implement the consumer rights law
 Lack of consumer rights groups and pressure groups
 Impunity, corruption, unstable political situation and unfair business competition
The possible solutions for it are:
 Fast track Consumer court must be established in Nepal
 Law must be enforced to standardize consumer products
 Consumer laboratories must be established for effective testing of products
 Establish a collaborative consumer information centre to raise awareness of
consumer rights
 Establish consumer complaint mechanism for each individual sector
 Provide inspection officers with sub-judicial rights for on the spot punishment of
mal-practice
 Consumer organizations, watch dogs, civil society and government officials must
work together
8. What does consumer right include? List them.
 The list of consumer rights are:
 Right to safety
 Right to be informed
 Right to choose
 Right to be heard
 Right to redress (Compensation for a wrong grievance)
 Right to consumer education
 Right to a healthy environment
 Right to satisfaction
Model Questions
1. What suggestions would you give a guardian to buy goods in market? Mention in four points.
2. The things that you regularly consume can be of low quality, adulterate or date expired. Mention
your views in four points towards this habit of consumption of goods.

3. What role can you play to aware the people about the consumer’s rights?
4. How does black market limit the consumer’s rights?
5. Imagine you were chairman of your Rural Municipality, show the list of tax or free in a table that
you deserve to collect levy or you don’t.
6. Mention the measures to make Financial Education effective in Nepal
7. Introduce ‘Economic Plan’. Mention any four problems of formation and implementation of plan
in Nepal and state the measures to solve the problem.
8. What types of changes are necessary in the co-operatives sectors of Nepal?
9. Mention any four ways to keep notes clean.
10. Present four differences between loan and stock exchange in a table.
11. What roles should be played by the local and provincial government to enact effectively in
practice the government’s program “ Gaon Gaon ma Sahakari, Ghar Ghar ma Bhakari”.
12. Write the name and three characteristics of the tourist area briefly that lies in your development
province among those briefly that lies in your province among those which the government has
declared ‘tourist areas’ for identity and promotion of tourist heritages.
13. Prepare a model of questionnaire that are asked to a tourist to know his wishes and objectives in
Nepal.
14. Which aspects should be considered to make economic plan successful? Clarify any four points.
15. Write a letter to the president of the Non Resident Nepali association pleading for investing in
hydropower in Nepal
SEE Questions
SEE 2075
1. What would you suggest to your neighbor going for foreign employment with the influence of a
friend but not having any skills. Mention in four points.
2. What is revenue? Explain briefly the merits and demerits of direct tax.
3. The share market is in decreasing state, how would you convince your parents to buy it?
4. Mention that the co-operatives can contribute in the national campaign, prosperous Nepal, Happy
Nepali in points with examples.
5. Suggest your guardian working abroad and sending money via Hundi by mentioning the
appropriate ways of sending money here.
6. Prepare a newspaper comprising the present condition of use and utilization of clean note in your
community.
7. Nepal is going to observe Nepal visit year in 2020. Prepare a dialogue between two friends
comprising the role of local level to be played for that task.
8. You must have visited any hydroelectricity project of Nepal. Prepare a short report about your
visit by using following subtitles
Topic and introduction Methodology Findings
9. Evaluate the social and economic effects of foreign employment in Nepal.
10. Write the roles that the state should play for making more successful and effective of co-operative
effects
11. Analyze the necessity of E-banking and its present condition in Nepal.
12. What suggestions would you give to the chair person of a co-operative operating as his or her
own business in case you got an opportunity to meet him/her? Suggest four points.
13. What is consumer right? Mention the advantages from consumer right.

SEE 2074
1. Have you or your family done life insurance? Clarify your view in four points towards the life
insurance.
2. Mention the features of co-operatives. Explain how co-operatives help the economic growth and
development
3. Either we should produce large amount of hydroelectricity or of alternative energy, then the
economic development of a country will be accelerated. Prove this statement with your own view
in four points.
4. Why do you consider better to save or take loan from the formal financial institutions. Analyze.
5. Give your opinion on the following statement and suggest in three points aspiring to avoid tax.
“Hey, I don’t want to pay tax rather I show less income and save money. I can get interest in the
bank if I deposit”.
6. Mention any four sources of non-tax revenue collection and also mention how tax revenue is
different than tax revenue?
7. The things that you regularly consume can be of low quality, adulterated or date expired. Mention
your views in four points toward this habit of consuming goods.
8. Nepal is a rich in water resource in the world but Nepal is not able to generate sufficient
hydroelectricity. Explain its any four causes and present any three measures to end energy crisis
that is faced by Nepal.

A Complete Solution To SEE: Unit: 8 Economic Activities Lesson: Economic Planning

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A Complete Solution To SEE: Unit: 8 Economic Activities Lesson: Economic Planning

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Unit: 8 Economic activities Lesson: Economic planning

1. What is economic planning?

1 Social Studies Manual Grade 10 Economic Activities

1. Mention the need and importance of economic planning.

 Achievable plans should be made according to the capability of the country

2 Social Studies Manual Grade 10 Economic Activities

 Country experienced a radical political change

3 Social Studies Manual Grade 10 Economic Activities

4 Social Studies Manual Grade 10 Economic Activities

Unit : 8 Economic activities Lesson: Tourism- Importance and probability

Very Short questions

5 Social Studies Manual Grade 10 Economic Activities

1. What is the difference between the International and domestic tourists.

6 Social Studies Manual Grade 10 Economic Activities

7 Social Studies Manual Grade 10 Economic Activities

8 Social Studies Manual Grade 10 Economic Activities

1. Why tourism is important for a country like Nepal?

9 Social Studies Manual Grade 10 Economic Activities

10 Social Studies Manual Grade 10 Economic Activities

11 Social Studies Manual Grade 10 Economic Activities

3. Religious Tourism: Another lucrative area of prompting Nepalese tourism lies

12 Social Studies Manual Grade 10 Economic Activities

Unit: 8 Economic Activities Lesson: Water a Major source of Power

1. What is the potential of hydroelectricity in Nepal?

13 Social Studies Manual Grade 10 Economic Activities

3. How can Nepal be benefited from the hydropower generation?

14 Social Studies Manual Grade 10 Economic Activities

15 Social Studies Manual Grade 10 Economic Activities

hydropower. The problems and challenges of hydropower generation in Nepal is

16 Social Studies Manual Grade 10 Economic Activities

Unit : 8 Economic activities Lesson: Foreign employment

1. Define foreign employment.

1. What are the advantages of foreign employment to Nepal? Explain.

17 Social Studies Manual Grade 10 Economic Activities

 Deteriorating agricultural productivity

18 Social Studies Manual Grade 10 Economic Activities

 The opportunity to promote self-employment and small business formation

19 Social Studies Manual Grade 10 Economic Activities

Labour act was introduced in 1992 A.D.

20 Social Studies Manual Grade 10 Economic Activities

21 Social Studies Manual Grade 10 Economic Activities

22 Social Studies Manual Grade 10 Economic Activities

Unit: 8 Economic activities Lesson: Cooperative

1. What is meant by cooperative?

1. What are the conditions for establishment of Cooperative in Nepal?

23 Social Studies Manual Grade 10 Economic Activities

 Cooperation among cooperatives

Cooperative enterprises Private enterprise

24 Social Studies Manual Grade 10 Economic Activities

 Lack professional management and plagued by the lack of adequate knowledge,

25 Social Studies Manual Grade 10 Economic Activities

 It mostly depends on cash trading

26 Social Studies Manual Grade 10 Economic Activities

Unit : 8 Economic Activities Lesson: Financial education

27 Social Studies Manual Grade 10 Economic Activities

 It is an electronic payment system that enables customers of a bank or other financial

1. Write down the importance of financial education.

28 Social Studies Manual Grade 10 Economic Activities

3. Write about the financial system in Nepal.

29 Social Studies Manual Grade 10 Economic Activities

30 Social Studies Manual Grade 10 Economic Activities

31 Social Studies Manual Grade 10 Economic Activities