LIC AAO 2019 – Financial Awareness Questions (Day – 14)

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 -14

maximum of 10 points
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1) A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________

a) External debt

b) Good debt

c) Bad debt

d) Internal debt

e) None of these

2) Which of the following is defined as the difference between current assets and current liabilities?

a) Venture Capital

b) Working Capital

c) Equitable Mortgage

d) Loss Assets

e) Profit and Loss Account

3) Which of the following is an investment strategy in which a fund invests in other types of funds?

a) Bond

b) Securities

c) Stock

d) Funds of Fund

e) None of the given options is true

4) Money Laundering is _____________

a) Conversion of money which is illegally obtained

b) Conversion of money which is legally obtained

c) All converted money

d) All of the above

e) None of the given options is true

5) Fiscal policy is concerned with which of the following?

a) Public revenue and Expenditure

b) Issue of Currency

c) Export Import

d) Population Control

e) Education for all

6) Under the share swap ratio announced for the proposed merger of Dena, Vijaya with BoB, will enable shareholders of Dena Bank and Vijaya Bank to receive ________ and __________equity shares respectively of BoB for every 1,000 shares they hold.

a) 110 and 402

b) 105 and 390

c) 115 and 425

d) 101 and 420

e) 110 and 420

7) The ‘Krishi Krishak Bandhu’ scheme of the West Bengal government will provide a life insurance cover of how much amount to the families in case of death of a working farmer?

a) Rs. 2 lakh

b) Rs. 5 lakh

c) Rs. 1 lakh

d) Rs. 3 lakh

e) Rs. 4 lakh

8) ICICI Bank and Small Business FinCredit have collaborated to provide loan facility of up to ________ to MSMEs

a) Rs. 5 lakh

b) Rs. 1 crore

c) Rs. 50 lakh

d) Rs. 5 crore

e) Rs. 2 crore

9 ) Which bank has distributed subsidy of more than Rs.1100 crores to more than 51,000 customers under the Government’s flagship scheme PMAY (Prime Minister Housing Scheme)?

a) ICICI Bank

b) HDFC Bank

c) Punjab National Bank

d) State Bank of India

e) Bank of India

10) The Reserve Bank of India has initiated steps to set up wide-based digital Public Credit Registry (PCR) to capture loan information of individuals and corporate borrowers. In this regard, RBI has invited expression of interest from companies having turnover more than ____ in the last three years.

a) Rs. 100 Crore

b) Rs. 200 Crore

c) Rs. 300 Crore

d) Rs. 500 Crore

e) Rs. 50 Crore

Answers :

1) Answer: c)

The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.

2) Answer: b)

The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

3) Answer: d)

Funds of Fund is an investment strategy in which a fund invests in other types of funds.

4) Answer: a)

Money laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity (illegally sources) originated from a legitimate source.

5) Answer: a)

Fiscal policy is the policy relating to government revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is mainly concerned with the flow of money in the economy.

6) Answer: a)

For every 1,000 equity shares of Vijaya Bank investors will get 402 equity shares of Bank of Baroda. For every 1,000 equity shares of Dena Bank investors will get 110 equity shares of Bank of Baroda.

7) Answer: a)

The state government of West Bengal has announced two initiatives under the ‘Krishi Krishak Bandhu’ scheme to provide financial assistance to the farmers. The first programme will give an annual financial assistance of Rs 5,000 per acre in two installments  (Rs 2,500) – one during kharif and another during rabi – for a single crop. Farmers can take the financial assistance at one go too. Under the second programme, life insurance cover of Rs. 2 lakh will be given in case of death (irrespective of the cause) of an earning farmer aged between 18 and 60 years.

8) Answer: b)

ICICI Bank and Small Business FinCredit will jointly provide loans worth up to Rs. 1 crore to the small and medium enterprises.It is the first-of-its-kind programme by a bank and an NBFC with the loans of up to Rs 1 crore is for a tenure of 15 years per customer.

9) Answer: b)

HDFC Ltd has distributed subsidy of more than Rs.1100 crores to more than 51,000 customers under the Government’s flagship scheme PMAY (Prime Minister Housing Scheme). HDFC has provided loans of over ₹9,800 crore under PMAY-CLSS(Credit Linked Subsidy Scheme) to customers belonging to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) category.

10) Answer: a)

RBI has invited expression of interest (EOI) for developing PSC from companies with turnover of over Rs. 100 crore in last three years. Setting up of PCR assumes significance amidst rising bad loans in financial system. The non-performing assets (NPAs) in Indian banking system is too much.

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