LIC AAO 2019 – Financial Awareness Questions (Day – 29)

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 5985]

1) Which among the following determines the ability of any organization to meet the financial losses?

a) Liquidity Ratio

b) Investment Ratio

c) Leverage Ratio

d) Transfer Ratio

e) None of the above

2) Banks can borrow up to ________ of their Net Demand and Time Liabilities under the Marginal Standing Facility (MSF) window.

a) 1%

b) 2%

c) 0.5%

d) 1.5%

e) None of the above

3) LORO Account is a _________ for one bank who opened the bank.

a) Nostro Account

b) Vostro Account

c) NRO Account

d) NRE Account

e) LORO Account

4)The major components of market risk are ________.

a) Interest rate risk, Equity risk, Forexrisk, Commodity risk

b) Forex risk, Market risk, Operational risk, Equity risk

c) Financial risk, Operational risk, Commodity risk, Capital risk

d) Interest rate risk, Commodity risk, Capital risk, Forexrisk

e) Financial risk, Commodity risk, Capital risk ,Equityrisk

5) Which of the following is/are not a small finance bank?

(1) Equitas  Bank

(2) Janalakshmi Bank

(3) AU Bank

(4) ESAF Bank

(5) Suryoday Bank

a) Both 1 and 2

b) Only 2, 3 and 4

c) All are Small Finance Banks

d) Only 2, 3, 4 and 5

e) Only 1

6) The Union Cabinet approved ________% hike in Dearness Allowance to central government employees and Dearness Relief to pensioners with effect from January 1, 2019.

a) 1.5

b) 2

c) 2.5

d) 3

e) 3.5

7) On which of the following banks did RBI impose a monetary fine of Rs. 4 crore on 4 March 2019?

a) Karnataka Bank

b) United Bank of India

c) KarurVysya Bank

d) Dena Bank

e) Yes Bank

8) The PradhanMantriShramyogiManvDhanYojana will assure a monthly pension of ₹________ on retirement for workers in the organised and unorganised sectors who have a monthly income below ₹15,000.

a) 1,500

b) 2,000

c) 2,500

d) 3,000

e) 3,500

9) Which of the following is/are true regarding the North East in the interim budget of 2019?

a) Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20.

b) Arunachal Pradesh came on the air map recently.

c) Meghalaya, Tripura and Mizoram came on India’s rail map for the first time.

d) Container cargo movement through improved navigation capacity of the Brahmaputra.

e) All are correct

10) A loan agreement of what amount was signed between the Union Government, Government of Himachal Pradesh and World Bank, for bringing clean and reliable drinking water to the citizens of Greater Shimla area?

a) $50 million

b) $40 million

c) $60 million

d) $70 million

e) $80 million

Answers:

1) Answer: c)

Leverage Ratio is defined as the financial ratio that is used to determine the ability of an organization to meet its financial losses. It is a measure of risk used extensively in the banking and financial industry. This is mainly a measure of the debt load of any organization with respect to its asset base.

2) Answer: a)

The Marginal Standing Facility (MSF) is a window created by the Reserve Bank of India to meet overnight liquidity requirements by banks and approved financial organizations. The organizations can borrow up to 1% of their net demand and time liabilities through this window. The present rate of Marginal Standing Facility is 6.75%.

3) Answer: a)

The LORO Account is a Nostro Account for one bank who opened the bank and Loro Account for another bank who refers first one account. Loro accounts are generally held by a 3rd party bank, other than the account maintaining bank or with whom the account is maintained. Loro Account is a Current Account maintained by one Domestic Bank on behalf of another domestic bank in a foreign bank in foreign currency.

4) Answer: a)

The Basel Committee on Banking Supervision defines market risk as the risk of losses in on- or off-balance sheet positions that arise from movement in market prices. The major components of market risk include: interest rate risk, equity risk, forex risk and commodity risk.

5) Answer: c)

Except for Dhanalaxmi Small Finance Bank, all others are small finance banks. The list of small finance banks in India are given below:

  • AU Small Finance Bank
  • Capital Small Finance Bank
  • Equitas Small Finance Bank
  • ESAF Small Finance Bank
  • Fincare Small Finance Bank
  • Janalakshmi Small Finance Bank
  • Suryoday Small Finance Bank
  • Ujjivan Small Finance Bank
  • Utkarsh Small Finance Bank

6) Answer: d)

The Union Cabinet approved 3% hike in Dearness Allowance to central government employees and Dearness Relief to pensioners with effect from January 1, 2019. The combined impact of the hike in dearness allowance and dearness relief will amount to Rs 9,168.12 crore per annum. Dearness allowance is provided as an adjustment to compensate for the increase in the cost of living due to inflation.

7) Answer: a)

RBI imposed a total monetary fine of Rs 8 crore on 3 banks – Karnataka Bank, United Bank of India and KarurVysya Bank. Banks were charged for non-compliance of directions on Swift messaging software. Rs 4 crore fine was imposed on Karnataka Bank, United Bank faced a penalty of Rs 3 crore, and Rs 1 crore fine on KarurVysya Bank. Rs 1 crore was also charged on Yes Bank for the same reason.

8) Answer: d)

Center has announced its proposal to launch a pension scheme for workers in the organised and unorganised sectors who have a monthly income below ₹15,000. The scheme called PradhanMantriShramyogiManvDhanYojana will assure a monthly pension of ₹3000 on retirement. It is expected to benefit 10 crore workers in the unorganized sector.

9) Answer: e)

All are true regarding the North East in the interim budget of 2019.

  • Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20.
  • Arunachal Pradesh came on the air map recently.
  • Meghalaya, Tripura and Mizoram came on India’s rail map for the first time.
  • Container cargo movement through improved navigation capacity of the Brahmaputra.

10) Answer:  b)

A loan agreement of $40 million was signed between the Union Government, Government of Himachal Pradesh and World Bank, for bringing clean and reliable drinking water to the citizens of Greater Shimla area.

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