LIC AAO 2019 – Financial Awareness Questions (Day – 13)

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 -13

maximum of 10 points
Table is loading
1) In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as___________-

a) Insider trading

b) Future trading

c) Foreign trading

d) Stock trading

e) None of the given options is true

2) Many a times, we read a term ‘SEPA’ in financial newspapers. What is the full form of the SEPA?

a) Single Exchange Processing Agency

b) Single Euro Payments Area

c) Single Electronic Processing Agency

d) Super Electronic Purchase Agency

e) None of these

3) __________________ is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds.

a) Development bonds

b) Insurance policies

c) Mutual funds

d) Sovereign wealth funds

e) None of the given options is true

4) The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector, this type of phenomenon is known as-

a) Probability risk

b) Market risk

c) Inflation risk

d) Credit risk

e) None of the given options is true

5) ETFs are mutual funds listed and traded on stock exchanges like shares. ETFs stands for _____________

a) Electronic Traded Funds

b) Exchange Time Funds

c) Exchange Traded Finance

d) Exchange Traded Flows

e) Exchange Traded Funds

6) To help boost liquidity particularly among small and marginal farmers in the farming sectors RBI has announced to increase the limit on collateral-free agriculture loans to what amount from Rs.1 lakh?

a) Rs.1.8 lakh

b) Rs.1.6 lakh

c) Rs.2.4 lakh

d) Rs.2.8 lakh

e) Rs.2.2 lakh

7) Reserve Bank of India has increased the limit of ‘bulk’ amount to what to enhance operational freedom of Banks?

a) Rs. 1 crore

b) Rs. 2 crores

c) Rs. 3 crores

d) Rs. 5 crores

e) Rs. 1.5 crores

8) Which payments platform acquired the Noida-based last-minute hotel booking app, Night Stay?

a) Paytm

b) Mobikwik

c) PhonePe

d) GooglePay

e) AmazonPay

9) Which Indian company has signed a partnership agreement with the French company Be-Bound to offer data connectivity through SMS in areas where there is no Internet connectivity?

a) MTNL

b) Airtel

c) Jio

d) BSNL

e) Idea

10) Which Indian bank recommended Unconditional Cash Transfer to farmers to alleviate the agrarian distress instead of Universal Basic Income (UBI) scheme in its Ecowrap report?

a) Punjab National Bank

b) ICICI Bank

c) Bank of Baroda

d) State Bank of India

e) Allahabad Bank

Answers :

1) Answer: a)

Insider trading is the trading of a public company’s stock or other securities by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.

2) Answer: b)

The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.

3) Answer: d)

A sovereign wealth fund (SWF) or sovereign investment fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally.

4) Answer: b)

Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved. Market risk, also called “systematic risk,” cannot be eliminated through diversification, though it can be hedged against.

5) Answer: e)

Exchange Traded Funds (ETFs) are mutual funds listed and traded on stock exchanges like shares.

6) Answer: b)

To help boost liquidity particularly among small and marginal farmers in the farming sectors RBI has announced to increase the limit on collateral-free agriculture loans to Rs.1.6 lakh from Rs.1 lakh.

7) Answer: b)

Reserve Bank of India has increased the limit of Rs. 1 crore deposits over Rs. 2 crores as ‘bulk’ as they doubled the limit for the same from the earlier Rs.1crore. This move will enhance operational freedom of Banks.

8) Answer: a)

Paytm acquired the Noida-based last-minute hotel booking app, Night Stay.

9) Answer: d)

BSNL has signed a partnership agreement with the French company Be-Bound to offer data connectivity through SMS in areas where there is no Internet connectivity.

10) Answer: d)

State Bank of India recommended Unconditional Cash Transfer to farmers to alleviate the agrarian distress instead of Universal Basic Income (UBI) scheme in its Ecowrap report.

/ 5. Reviews