LIC AAO 2019 – Financial Awareness Questions (Day – 19)

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.
[WpProQuiz 5834]

1) PradhanMantriVayaVandanaYojana (PMVVY) is a pension plan for senior citizens managed and operated by Life Insurance Corporation (LIC). Under this scheme pension will be paid for how many years?

a) 5 years

b) 10 years

c) 6 years

d) 7 years

e) 8 years

2) Which of the following is an internationally recognized identification code for banks around the world, commonly used for international wire transfers?

a) BIN Code

b) IFCS code

c) IBC code

d) Swift Code


3) Which of the following exchange/s comes under the Indian Secondary Market?

a) Regional stock exchanges

b) BSE and NSE

c) Over the Counter Exchange of India

d) The Inter-Connected Stock Exchange of India

e) All of the above

4) What does the term ‘Financial Exclusion’ refers to, in banking system?

a) Exclude the Finance

b) Lack of Access to Financial Services

c) Overlooking financial impacts of the services.

d) Instability of Financial Services

e) None of the above

5) The stock exchanges are defined under which of the following acts?

a) Companies Act, 2013

b) SEBI Act, 1992

c) SCRA, 1956

d) RBI Act, 1934

e) None of the above

6) Which of the following bank has decided to link interest rates on the savings bank account to an external benchmark from 1st May 2019?

a) HDFC Bank

b) Indian Overseas Bank

c) Union Bank of India

d) State Bank of India

e) Bank of Baroda

7)  How many rupees will be transferred by the Reserve Bank of India (RBI) as an interim surplus to the central government for the half-year (till 31st December 2018)?

a) 28000 crores

b) 10000 Crores

c) 50000 Crores

d) 2000 Crores

e) 1000 Crores

8) The “PradhanMantriKisanSammanNidhi (PM-KISAN)” will cost the government ________ per year.

a) Rs 15,000 crore

b) Rs 30,000 crore

c) Rs 40,000 crore

d) Rs 60,000 crore

e) Rs 75,000 crore

9) As per the Interim Budget, what was India’s Debt to GDP ratio in the year 2017-18?

a) 46.5%

b) 44.4%

c) 40%

d) 45%

e) 42%

10) How much amount has been allocated for ‘PradhanMantriShram-Yogi Maandhan’ in the Interim Budget 2019-20?

a) 400 crore

b) 450 crore

c) 500 crore

d) 600 crore

e) 750 crore

Answers :

1) Answer: b)

PradhanMantriVayaVandanaYojana (PMVVY) was launched by the Government of India in 2017. PMVVY is a pension scheme for senior citizens aged 60 years and above. Life Insurance Corporation (LIC) of India has been authorized by the government of India to implement the PMVVY. It provides an assured return of 8% p.a. payable monthly for 10 years.

2) Answer: d)

Swift- Society for Worldwide Interbank Financial Telecommunication code.An internationally recognized identification code for banks around the world. SWIFT codes are most commonly used for international wire transfers and are comprised of 8 or 11 alphanumeric characters.

3) Answer: e)

The Indian secondary market now has a four-tier form as follows:

Regional stock exchanges

The National Stock Exchanges (BSE and NSE)

The Over the Counter Exchange of India (OTCEI)

The Inter-Connected Stock Exchange of India (ISE)

4) Answer: b)

Financial exclusion can be defined as the unavailability of banking services to people with low or non-income. It is believed to be one factor preventing poor people leave out poverty.

5) Answer: c)

Stock Exchange are defined under Securities Contract (Regulation) Act, 1956 [SCRA] They are defined as anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception.

6) Answer: d)

State Bank of India (SBI) has decided to link interest rates on the savings bank account to an external benchmark from 1st May 2019. With this SBI becomes the first Indian bank to link both deposit rate and lending rate to an external benchmark.

7) Answer: a)

The Reserve Bank of India (RBI) will transfer an interim surplus of 28,000 crore rupees to the central government for the half-year (ended 31st December 2018).The decision has been based on a limited audit review and after applying the extent economic capital framework.

8) Answer: e)

To provide an assured income support to the small and marginal farmers, Government is launching a programme namely “PradhanMantriKisanSammanNidhi (PM-KISAN)”. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs. 2,000 each. This programme will be funded by Government of India. Around 12 crore small and marginal farmer families are expected to benefit from this. The programme would be made effective from 1st December 2018 and the first instalment for the period up to 31st March 2019. This programme will entail an annual expenditure of Rs. 75,000 crore.

9) Answer: a)

India’s Debt to GDP ratio was 46.5% in year 2017-18. The FRBM Act prescribes that the Debt to GDP ratio of the Govt of India should be brought down to 40% by 2024-25.

10) Answer: c)

The Government has proposed to launch a mega pension yojana ‘PradhanMantriShram-Yogi Maandhan’ for the unorganised sector workers with monthly income uptoRs. 15,000. This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age. A sum of Rs. 500 crore has been allocated for the Scheme.


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