LIC AAO 2019 – Financial Awareness Questions (Day – 01)

Dear Aspirants, LIC AAO is one the most important exam in the competitive examination. LIC AAO mains exam consists of four sections i.e. Reasoning ability, Data Analysis & Interpretation, General knowledge & Current affairs and Insurance & Financial Market Awareness. Insurance & Financial Market Awareness section comprises of 30 questions.  Insurance & Financial Market Awareness questions plays an important role in boosting up the score in mains examination and also helps in interview. Here we are providing new series of Practice Questions on Financial awareness. Aspirants can make use of it, to improve score in Insurance & Financial Market Awareness section.

LIC AAO Financial Awareness Questions Day -01

maximum of 10 points
Table is loading
1) An emerging market economy is highly classified with relatively- one in which the country is becoming a developed nation and is determined through many socio_________

a) Economic factors

b) External factors

c) Commercial factors

d) GDP factors

e) Growth factors

2) RBI’s New Rules To Push Another Rs ____ Loans Into Insolvency stated Credit Suisse.

a) Rs 1.5 lakh crore

b) Rs 2.5 lakh crore

c) Rs 3.5 lakh crore

d) Rs 4.5 lakh crore

e) Rs 5.5 lakh crore

3) _____ is the value of all finished goods and services produced in a country in one year by its nationals.

a) BOP

b) GDP

c) CDS

d) GNP

e) NPA

4) Odisha CM Naveen Patnaik announced a Rs10,000 crore scheme named KALIA for the overall development of farmers. KALIA stands for ______________.

a) Krushak Accommodation for Livelihood and Income Agriculture

b) Krushak Assistance for Livelihood and Income Augmentation

c) Krushak Accommodation for Livelihood and Independent Agriculture

d) Krushak Assistance for Livelihood and Independent Augmentation

e) None of the given options is true

5) According to data released by Insurance Regulatory and Development Authority of India (IRDAI), what percentage of life insurance policies bought by women in 2017-18?

a) 48%

b) 42%

c) 26%

d) 32%

e) 56%

6) In India, an Asset Reconstruction Company is regulated by?

a) MUDRA

b) SEBI

c) NABARD

d) EXIM

e) RBI

7) Narrow Money is the term in monetary aggregates, which is represented by?

a) M1

b) M2

c) M3

d) M4

e) M5

8) In context of banking, what does ‘BBB’ stands for?

a) Bank Board Bureau

b) Bank Beneficiary Bureau

c) Bank Bureau Board

d) Bank Bureau Beneficiary

e) None of the above

9) Which among the following commodity exchange has launched India’s first commodity options in gold?

a) National Spot Exchange Limited (NSEL)

b) Indian Commodity Exchange Limited (ICEX)

c) National Commodity & Derivatives Exchange Limited (NCDEX)

d) Multi-Commodity Exchange of India Ltd (MCX)

e) Securities and Exchange Board of India (SEBI)

10) In Notice Money Market, the tenor of the transactions is from ________

a) 2-7 days

b) 2-14 days

c) 2-21 days

d) 2-28 days

e) 2-90 days

Answers:

1) Answer: a)

An emerging market economy is highly classified with relatively – one in which the country is becoming a developed nation and is determined through many socio- economic factors.

2) Answer: a)

Another Rs 1.5 trillion (or Rs 1.5 lakh crore) of non-performing assets are now likely to be with the National Company Law Tribunal in the next six months,” according to a Credit Suisse report on RBI’s new rules.

3) Answer: d)

Gross national product (GNP) is a broad measure of a nation’s total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals.

4) Answer: b)

Odisha CM Naveen Patnaik announced a Rs10,000 crore scheme for the overall development of farmers. Named Krushak Assistance for Livelihood and Income Augmentation (KALIA), the scheme will provide farmers with Rs10,000 a year at the rate of Rs5,000 each for Kharif and Rabi season. Ganeshi Lal is the Governor of Odisha.

5) Answer: d)

While women constitute nearly 48% of the country’s population, their contribution to the number of life policies bought in 2017-18 stood at 32% of the 2.82 crores policies sold. According to the IRDAI annual report, of the 90 lakhs policies bought by women in 2017-18, Maharashtra (12%), West Bengal (10.3%) and Uttar Pradesh (9.4%) accounted for a third of these.

6) Answer: e)

The leading problem in the country right now is alarming volume of Non-Performing Assets with the banking system. Several attempts were made to tackle NPAs. A serious such step was the creation of dedicated institutions called Asset Reconstruction Companies or ARCs that purchases bad assets or NPAs from banks at a negotiable price and helps banks to clean up their balance sheets (by removing the NPAs). RBI has got the power to regulate the ARCs.

7) Answer: a)

Different measures of money supply. Not all of them are widely used and the exact classifications depend on the country. M0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.

8) Answer: a)

Banks Board Bureau is an autonomous body of Union government of India tasked to improve the governance of Public sector banks, recommend selection of chiefs of government owned banks and financial institutions and to help banks in developing strategies and capital raising plans.

9) Answer: d)

The Multi-Commodity Exchange of India Ltd (MCX) launched India’s first commodity options in gold, giving stakeholders a new set of financial instruments to hedge their price risks. Launched by Union Finance Minister Arun Jaitley in New Delhi on the auspicious day of Dhanteras, the gold options received an encouraging response on Day 1.

10) Answer: b)

In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

/ 5. Reviews

Online Mock Tests 2019: