LIC AAO 2019 – Financial Awareness Questions (Day – 17)

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 -17

maximum of 10 points
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1) PradhanMantriVayaVandanaYojana (PMVVY)’ aims to provide social security during old age. What is the minimum purchase price under the scheme for a minimum pension of Rs. 1,000/- per month ?

a) Rs.1,20,000

b) Rs.1,00,000

c) Rs.1,25,000

d) Rs.1,50,000

e) Rs. 2,50,000

2)  Beta measures what type of risk?

a) Financial risk

b) Currency risk

c) Investment risk

d) Market and finance risk

e) Market risk

3) An option that may only be exercised on expiration is known as ?

a) Put Option

b) European Option

c) Call Option

d) American Option

e) None of the above

4) In which of the following types of cheques, the person whose name is written by the issuer, is the only person authorized to collect the amount?

a) Slate Cheque

b) Anti-dated cheque

c) Bearer Cheque

d) Blank cheque

e) Order Cheque

5) In the financial sector there are many companies who are providing banking like activities though they are not recognized as banks. How is this particular type of activity known as?

a) Informal banking

b) Indigenous banking

c) Shadow banking

d) Development banking

e) Adaptive Banking

6) “Shishu” scheme under ‘PradhanMantri Mudra Yojana’ covers loan upto which limit?

a) Rs. 100,000

b) Rs. 50,000

c) Rs. 500,000

d) Rs. 200,000

e) Rs. 250,000

7) What is Marginal Standing Facility (MSF) rate and Statutory Liquidity Ratio (SLR) as per ‘First Bi-Monthly Monetary Policy’ released recently?

a) 6.50% and 19.50%

b) 6.25% and 19.25%

c) 6.75% and 19.75%

d) 6.50% and 19.25%

e) 5.75% and 18.50%

8) In September 2018, the New Development Bank of the BRICS countries has approved a $525-million loan to ____________ for infrastructure projects.

a) Madhya Pradesh

b) West Bengal

c) Bihar

d) Uttarakhand

e) Assam

9) In September 2018, the government has doubled the monetary limit to __________ for filing loan recovery application in the Debt Recovery Tribunals.

a) Rs. 25 Lakh

b) Rs. 10 Lakh

c) Rs. 30 Lakh

d) Rs. 5 Lakh

e) Rs. 20 Lakh

10) The GST council has decided to offer cash back to consumers. What is the maximum limit of cashback on payments via Rupay cards, BHIM and UPI system once the offer is implemented?

a) Rs. 25

b) Rs. 50

c) Rs. 100

d) Rs. 75

e) Rs. 150

Answers :

1) Answer: d)

PradhanMantriVayaVandanaYojana (PMVVY)’ aims to provide social security during old age and to protect elderly persons aged 60 and above. Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month

2) Answer: c)

Beta of an investment indicates whether the investment is more or less volatile than the market as a whole. In general, a beta less than 1 indicates that the investment is less volatile than the market, while a beta more than 1 indicates that the investment is more volatile than the market.

3) Answer: b)

European option – an option that may only be exercised on expiration.American option – an option that may be exercised on any trading day on or before expiry. Call Option – gives the buyer of option the right ( not obligation) to buy a currency or share. Put Option – gives the buyer of option the right (not obligation) to sell a currency or share.

4) Answer: e)

Order cheque is issued to only that person whose name is written on the cheque by the issuer. Identification is required at the time of presenting the cheque to the bank.

5) Answer: c)

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but outside normal banking regulations. The phrase “shadow banking” contains the pejorative connotation of back alley loan sharks.

6) Answer: b)

Under PradhanMantri Mudra Yojana, 3 types of schemes- Shishu, Kishor, Tarun has been launched. Shishu scheme covers loan uptoRs. 50,000.

7) Answer: b)

In February 2019, Reserve Bank of India (RBI)’s six-member monetary policy committee chaired by RBI Governor Shaktikanta Das released its First Bi-Monthly Monetary Policy. RBI had reduced 0.25 basis points in the Policy Rates with immediate effect. The Change in Policy rates are as follows: Repo Rate: 6.00% , Reverse Repo Rate: 5.75%, Marginal Standing Facility Rate: 6.25%, Bank Rate: 6.25%, Cash Reserve Ratio (CRR): 4%, Statutory Liquidity Ratio (SLR): 19.25%.

8) Answer: a)

The New Development Bank of the BRICS countries has approved a $525-million loan to Madhya Pradesh for infrastructure projects.

The loan would be used by the Indian government for on-lending to the Madhya Pradesh government for rehabilitating major district roads with a total length of about 2,000 km to improve the connectivity of the rural interior with the national and state highway networks.

9) Answer: e)

The government doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals by banks and financial institutions.It is aimed at helping reduce pendency of cases in DRTs. There are 39 DRTs in the country.The government has made several amendments in different laws, including the SARFAESI Act to make the tribunals more effective and to facilitate fast disposal of debt recovery cases.

10) Answer: c)

Once the offer is implemented, the customers making payments through Rupay card and BHIM UPI would get a cashback of 20% of the total GST amount, subject to a maximum limit of Rs 100.The Goods and Services Tax (GST) Council decided to offer cash back to consumers on a trial basis for every digital payment made via Rupay cards, BHIM application and UPI system to promote cashless transactions in rural semi-urban areas.

Online Mock Tests 2019: