LIC AAO 2019 – Financial Awareness Questions (Day – 02)

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 -02

maximum of 10 points
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1) Depositor Education and Awareness Fund (DEAF) is maintained by which of the following organisation?

a) NABARD

b) RBI

c) Public Provident Fund Authorities

d) SIDBI

e) IRDA

2) Commercial Paper (CP) are issued by____________.

a) Government of India

b) Corporate

c) Primary dealers (PDs)

d) Only a) and b) is correct

e) Only b) and c) is correct

3) The type of inflation which does not consider the inflation in food and fuel is known as?

a) Headline Inflation

b) Core Inflation

c) Consumer Inflation

d) Real Inflation

e) Nominal Inflation

4) Which one among the following is not a part of priority sector lending?

a) Agriculture

b) Education

c) Renewable Energy

d) Housing Loans

e) Export Import Credit

5) Which of the following does not constitute an asset on the Balance sheet of a company?

a) Tools and Equipment

b) Amounts receivable

c) Capital Stock

d) Cash

e) All of these

6) Which Bank has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares?

a) Yes Bank

b) HDFC Bank

c) State Bank of India

d) ICICI Bank

e) Punjab National Bank

7) The World Bank has approved Rs.6000 crore to Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation for which scheme?

a) PradhanMantriFasalBimaYojana

b) AtalBhujalYojana

c) Atal Mission for Rejuvenation and Urban Transformation

d) PradhanMantriGaribKalyanYojana

e) Atal Pension Yojana

8) According to SEBI, investors will be permitted to purchase mutual funds worth up to Rs. ______________ through digital wallets.

a) Rs 25,000

b) Rs 5,000

c) Rs 50,000

d) Rs 1,00,000

e) Rs 1,50,000

9) Indian economy grew by what percent in the first quarter (April-June) of the current fiscal, the highest in over two years as per the Finance Ministry?

a) 8.0%

b) 8.1%

c) 8.2%

d) 8.3%

e) 8.4%

10) The government of India has doubled the monetary limit to _____________ for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

a) 20 lakh rupees

b) 10 lakh rupees

c) 80 lakh rupees

d) 30 lakh rupees

e) 14 lakh rupees

Answers :

1) Answer: b)

Depositor Education and Awareness Fund (DEAF) Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank. All banks are required to transfer money lying in accounts that have been inoperative for at least 10 years to the DEAF according to specific guidelines.

2) Answer: e)

Commercial Paper (CP) is an unsecured money market instrument introduced in 1990 which are issued in the form of a promissory note. Corporate, Primary Dealers and All India Financial Institutions are eligible to issue CP.

3) Answer: b)

Core inflation is also a term used to denote the extent of inflation in an economy. But Core inflation does not consider the inflation in food and fuel. This is a concept derived from headline inflation. There is no index for direct measurement of core inflation and now it is measured by excluding food and fuel items from Wholesale Price Index (WPI) or Consumer Price Index (CPI).

4) Answer: e)

Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.. This is essentially meant for an all-round development of the economy as opposed to focusing only on the financial sector.

Priority Sector includes the following categories:

(i) Agriculture

(ii) Micro, Small and Medium Enterprises

(iii) Export Credit

(iv) Education

(v) Housing

(vi) Social Infrastructure

(vii) Renewable Energy

(viii) Others

5) Answer: c)

A balance sheet, also known as a “statement of financial position”, reveals a company’s assets, liabilities and owners equity (net worth). Assets are what a company uses to operate its business. While its liabilities and equity are two sources that support these assets. Cash, accounts receivable, tools and equipment, etc are categorized as assets, while liabilities, capital stock and retained earnings come under Liabilities and Owners Equity.

6) Answer: e)

State-run Punjab National Bank (PNB) has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares. The bank stated it will issue up to 10 crore equity shares to its employees under ‘Employee Stock Purchase Scheme (ESPS)’. A note is being placed to board in its ensuing meeting dated June 15, 2018 regarding ESPS with a proposal for issuance of up to 10 crore equity shares to its employees, the bank said in a regulatory filing.

7) Answer: b)

The World Bank has approved AtalBhujalYojana (ABHY), a Rs.6000 crore Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation. The scheme is to be implemented over a period of five years from 2018-19 to 2022-23, with World Bank assistance. The scheme proposal has already been recommended by the Expenditure Finance Committee and the Ministry will be seeking Cabinet approval for the project shortly.

8) Answer: c)

Investors will be permitted to purchase mutual funds worth up to Rs. 50,000 through digital wallets, the market regulator, SEBI stated in a release. “Investments up to Rs. 50,000 per mutual fund per financial year can be made using e-wallets,” the regulator said while redemptions of such investments can be made only to the bank account of a unit holder.

9) Answer: c)

India’s economy grew at an impressive 8.2 per cent in the first quarter of 2018-19 financial year ending June 30 on the back of a strong core performance and a healthy base .

10) Answer: a)

The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

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