LIC AAO 2019 – Financial Awareness Questions (Day – 26)

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 5950]

1) Infrastructure Finance Company (IFC) is a non-banking finance company has a minimum Net Owned Funds of _______.

a) Rs.100 Crore

b) Rs.200 Crore

c) Rs.300 Crore

d) Rs.400 Crore

e) Rs.500 Crore

2)The most appropriate measure of a country’s economic growth is

a) GDP

b) NDP

c) Per capita real income

d) GNP

e) None of these

3)“CAGR” is a measure of growth over multiple time periods. What “C” denotes in acronym CAGR?

a) Calculative

b) Compound

c) Co-related

d) Credit-linked

e) Cost-linked

4) Which of the following statements are true in regards NBFC?

a) A NBFC can accept demand deposits

b) A NBFC can issue cheques

c) Credit Guarantee Corporation is available to depositors of NBFCs

d) A NBFC can extend loans and advances

e) None of the above

5) National income doesn’t include:

a) Income for government expenditure

b) Interest on unproductive national debt

c) The payments by the household to firm the purchase of goods and services

d) Undistributed profit

e) All of the above

6) Bank of Baroda recently signed MoU with ____ firms to develop “Baroda Kisan” to provide solutions for all major agricultural requirements.

a) 2

b) 3

c) 4

d) 5

e) 6

7)As announced in Interim Budget 2019-20, what is target of Fiscal deficit for financial year 2019-20?

a) 3.1% of GDP

b) 3.5% of GDP

c) 3.4% of GDP

d) 4.4% of GDP

e) 2.8% of GDP

8) IDBI Bank has been categorized as ‘Private Sector Lender’ by RBI. What percentage of stake has been acquired by Life Insurance Corporation of India (LIC) in the bank recently?

a) 49%

b) 26%

c) 65%

d) 76%

e) 51%

9)What percentage of stake has been acquired by Asian Development Bank in micro-financier company ‘Annapurna Finance’ recently?

a) 24%

b) 14%

c) 49%

d) 76%

e) 51%

10) Which state government has launched ‘Pravasi Dividend Pension Scheme’ to provide regular pension to non-resident?

a) Manipur

b) Uttar Pradesh

c) Maharashtra

d) Gujarat

e) Kerala

Answers :

1) Answer: c)

IFC is a company which has net owned funds of at least Rs. 300 Crore and has deployed 75% of its total assets in Infrastructure loans is called IFC provided it has credit rating of A or above and has a CRAR of 15%.

2) Answer: c)

Per capita income is the average income of the country. Per capita real income takes inflation into consideration.

3) Answer: b)

The Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

4) Answer: d)

NBFC’s lend and make investments and hence their activities are similar to that of banks; however there are a few differences as given below:

i. NBFC cannot accept demand deposits;

ii. NBFCs do not form part of the payment and settlement system and hence cannot issue cheques

iii. Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

5) Answer: b)

National income doesn’t include interest on unproductive national debt.

6) Answer: e)

Bank of Baroda has signed memorandum of understanding (MoU) with six firms namely Skymet Weather Services, Weather Risk Management Services, BigHaat, Agrostar India, EM3 Agri Services and PoortiAgri Services to develop “Baroda Kisan”. It will provide solutions for all major agricultural requirements through its holistic approach. The execution of the platform will be done by IT Centre of Excellence (ITCoE) of Bank of Baroda in partnership with IBM India.

7) Answer: c)

The target of fiscal deficit for 2019-20 is 3.4% of GDP while for next year it is estimated to be 3.1% of GDP.

8) Answer: e)

In March 2019, The Reserve Bank of India categorized IDBI Bank as a Private Sector Bank with effect from January 21, 2019 following Life Insurance Corporation of India (LIC) has acquired 51 per cent of the total paid-up equity share capital of the bank.

9) Answer: b)           

In February, 2019, Asian Development Bank (ADB) bought 14% stake in micro-financier Annapurna Finance for Rs. 137 crores. ADB Bank bought this stake with a motive of attracting long -term funds from global lenders and investors.

10) Answer: e)

Kerala state government has launched a ‘Pravasi Dividend Pension Scheme’ to provide regular pension to non-resident Keralites on a one-time payment of Rs.5 Lakhs.

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