LIC AAO 2019 – Financial Awareness Questions (Day – 20)

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 -20

maximum of 10 points
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1) An organization such as a bank or insurance company that buys and sells large quantities of securities is called __________

a) Major Investor

b) Minor Investor

c) Institutional Investor

d) Giant

e) None of these

2) A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is called _______.

a) Indian Depository Receipt (IDR)

b) Commercial Paper

c) Promissory Note

d) Indian Depository Revenue

e) None of these

3) Which one of the following is the regulator of Capital Market in India?

a) RBI

b) SEBI

c) SIDBI

d) IRDA

e) NSE

4) Currency swap is an instrument to manage ______

a) Interest rate and currency risk

b) Currency risk

c) Interest rate risk

d) Cash flows in different currency

e) None of these

5) What is the minimum capital requirement for new on tap license to set up Private Banks?

a) Rs. 200 crore

b) Rs. 300 crore

c) Rs. 500 crore

d) Rs. 600 crore

e) None of these

6) Up to what amount of existing debt the Reserve Bank has allowed a one-time restructuring for the companies which have defaulted on payment, but the loans given to them have continued to be classified as standard assets?

a) Rs. 20 crore

b) Rs. 25 crore

c) Rs. 15 crore

d) Rs. 10 crore

e) Rs. 50 crore

7) IRCTC, the Railways’ subsidiary, will offer insurance of up to INR ______ for free for air passengers who book their tickets through its portal.

a) 25 lakh

b) 10 lakh

c) 50 lakh

d) 5 lakh

e) 35 lakh

8) Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide ________ under a swap arrangement to boost the island nation’s reserves.

a) USD 400 million

b) USD 100 million

c) USD 200 million

d) USD 300 million

e) USD 250 million

9) The 32nd Meeting of GST Council was concluded in New Delhi. The Council has decided to increase the GST registration threshold limit to ____________ from 20 lakh rupees.

a) 40 lakh rupees

b) 35 lakh rupees

c) 38 lakh rupees

d) 45 lakh rupees

e) 30 lakh rupees

10) The government has announced __________ rupee award for states that would complete the household electrification early under the Saubhagaya scheme.

a) 200 crore

b) 50 crore

c) 150 crore

d) 10 crore

e) 100 crore

Answers :

1) Answer: c)

Institutional investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, investment advisors, endowments, and mutual funds.

2) Answer: a)

A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is known as Indian Depository Receipt (IDR).

3) Answer: b)

The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1988. SEBI is the regulator of Capital Market in India.

4) Answer: d)

A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.

5) Answer: c)

As per RBI guidelines, minimum capital requirement for New on tap license to set up Private Banks is Rs. 500 crore. Validity of the in-principle approval issued by the RBI will be 18 months from the date of granting in-principle approval.

6) Answer: b)

Reserve Bank allowed a one-time restructuring of existing debt up to Rs. 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.

7) Answer: c)

Indian Railway Catering and Tourism Corporation (IRCTC), the Railways’ subsidiary, will offer insurance of up to INR50 lakh for free for air passengers who book their tickets through its portal. IRCTC has tied up with Bharti-Axa for the offer.

8) Answer: a)

Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide USD 400 million under a swap arrangement to boost the island nation’s reserves.

9) Answer: a)

The 32nd Meeting of GST Council was concluded in New Delhi. The Limit of annual turnover for composition scheme increased to 1.5 crore rupees effective from April 1, 2019. The Council has decided to increase the GST registration threshold limit to 40 lakh rupees from 20 lakh.

10) Answer: e)

The government has announced 100 crore rupee award for states that would complete the household electrification early under the Saubhagaya scheme. Apart from discoms, employees would also collectively get 50 lakh rupees award for completing the task of electrifying households under the scheme.

Online Mock Tests 2019: