LIC AAO 2019 – Financial Awareness Questions (Day – 12)

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 -12

maximum of 10 points
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1) The IFAD is an international financial institution and a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. IFAD stands for-

a) International Fund for Agricultural Derivative

b) International Fund for Association Development

c) Indian Fund for Agricultural Development

d) International Fund for Agricultural Development

e) International Financial for Agricultural Development

2) What is an Indian depository receipt?

a) A deposit account with a public-sector bank

b) A depository account with any of the depositories in India

c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

d) An instrument in the form of deposit receipt issued by Indian depositories

e) None of the given options is true

3) When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as-

a) Mis-selling

b) Undertaking

c) Misappropriation of funds

d) cross-selling

e) None of the given options is true

4) The stock market index of London, stock market is referred as-

a) Sensex

b) Footsie

c) Nifty

d) Bullish

e) None of the given options is true

5) The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as-?

a) Cash crunch

b) Liquidity

c) Credit

d) Marketability

e) None of the given options is true

6) Fitch Solutions has projected the government’s fiscal deficit to slip to ________% of GDP in 2019-2020 fiscal.

a) 3.2

b) 3.4

c) 3.6

d) 3.8

e) 4.0

7) In December 2018, RBI limited total outstanding External Commercial Borrowings (ECB) to how much percent of GDP?

a) 6.2 percent

b) 7.0 percent

c) 6.8 percent

d) 6.5 percent

e) 5.7 percent

8) The GST on affordable housing properties without input tax credit (ITC) has been reduced to how much percent?

a) 2%

b) 3%

c) 1%

d) 4%

e) 5%

9) The Affordable Housing is one where the value of the residential house/flat should be upto Rs. _____________ in both metropolitan and non-metropolitan cities

a) Rs. 15 lakh

b) Rs. 25 lakh

c) Rs. 45 lakh

d) Rs. 65 lakh

e) Rs. 72 lakh

10) The monthly income of the beneficiaries under the Pradhan Mantri Shram Yogi Maandhan (PMSYM) Yojana should not exceed ______________

a) Rs. 15000

b) Rs. 20000

c) Rs. 25000

d) Rs. 18000

e) Rs. 16000

Answers:

1. Answer: d)

The International Fund for Agricultural Development (IFAD) is an international financial institution and a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries.

2. Answer: c)

Indian depository receipt is an instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.

3. Answer: a)

Misselling is a significant problem in financial services industry and for financial industry regulators. Brokers, financial advisors, bank representatives or other salespeople of financial products or services who are compensated based on commissions may have significant incentives to sell investments or investment products based on how much they can earn rather than what is suitable or what is needed by a customer. Misselling may occur with insurance products, annuities, investments, mortgages and a variety of other financial products. A financial loss is not necessarily required to meet the definition of misselling; the sale of an unsuitable product is enough.

4. Answer: b)

The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the “Footsie”, is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization.

5. Answer: b)

The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as is liquidity.

6. Answer: c)

Fitch Solutions, an arm of the Fitch group has projected the government’s fiscal deficit to slip to 3.6% of GDP in 2019-2020 fiscal. It said that 2019-20 Budget will show a strong populist bent in the run-up to the General election due by May 2019. The central government is planning to spend a total of Rs 27.8 lakh crore in fiscal 2019-20.

7. Answer: d)

RBI announced a cap on the outstanding stock of external commercial borrowings at 6.5 percent of GDP at current market prices

8. Answer: c)

The GST on affordable housing properties without input tax credit (ITC) has been reduced to 1 percent, while effective GST of 5 per cent shall be applicable without ITC on residential properties outside affordable segment, as was decided by the GST Council at its 33rd meeting.

9. Answer: c)

A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities).

10. Answer: a)

The monthly income of the beneficiaries under the Pradhan Mantri Shram Yogi Maandhan (PMSYM) Yojana should not exceed by Rs. 15000. This Scheme shall be open only to the unorganised worker for joining whose monthly income is not exceeding fifteen thousand rupees, who has a savings bank account in his name and, has Aadhar number and Age should be between 18 years to 40 years

 

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