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.
1) The credit rating agencies (CRAs) operating in India is regulated by which of the following institutions?
2) A fund that tracks an index but can be traded like a stock is known as _______
a) Exchange Traded Funds (ETF)
b) Mutual Funds
c) Energy Funds
d) Investment Fund
e) None of these
3) We often read about EBITDA margin of companies. What does the letter ‘E’ denote in the term EBITDA?
4) What does the letter ‘T’ denote in the term TReDS as used in banking/finance?
5) “AePS” is a bank-led model for transactions at micro-ATMs. Here, A stands for ___________
6) ‘KisanSuvidha loan’ was launched by which among the following small finance banks?
a) ESAF Small Finance Bank
b) Ujjivan Small Finance Bank
c) Jana Small Finance Bank
d) Equitas Small Finance Bank
e) AU Small Finance Bank
7) Recently, The Navy has finalized ₹ 700 Crorecontract with _________ for establishing an upgraded Naval Airfield Integrated Security System.
a) Bharat Heavy Electricals Limited
b) Bharat Electronics Limited
c) Reliance Industries
d) Hindustan Aeronautics Limited
e) Bharat Dynamics Limited
8) Recently, the government has proposed to launch ‘PradhanMantriShram-Yogi Maandhan’ for the unorganised workers with monthly income up to _________.
a) ₹ 15000
b) ₹ 20000
c) ₹ 10000
d) ₹ 30000
e) ₹ 25000
9) The Insolvency and Bankruptcy Code has helped the Public Sector Banks recover over _________ crore in the 3 quarters of the current fiscal.
a) ₹ 50000 Crore
b) ₹ 25000 Crore
c) ₹ 10000 Crore
d) ₹ 75000 Crore
e) ₹ 1 Lakh
10) RBI recently mandated banks to treat ______________ and more as bulk deposits.
a) ₹2 crore
b) ₹1 crore
c) ₹1.5 crore
d) ₹2.5 crore
e) ₹3 crore
1) Answer: b)
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments,and in some cases, of the servicers of the underlying debt,but not of individual consumers.The debt instruments rated by CRAs include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, and collateralized securities, such as mortgage-backed securities and collateralized debt obligations. The credit rating agencies (CRAs) operating in India are regulated by SEBI.
2) Answer: a)
An ETF (Exchange Traded Fund) is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
3) Answer: a)
The EBITDA margin measures a company’s earnings before tax, depreciation and amortization as a percentage of the company’s total revenue. Because EBITDA is calculated before any interest, taxes, depreciation and amortization, the EBITDA margin measures how much cash profit a company made in a given year.Fullform of EBITDA is Earnings before interest, tax, depreciation and amortization .
4) Answer: e)
A number of private sector companies and a dozen state-run firms and public sector banks have registered themselves on the Trade Receivables Electronic Discounting System (TReDS) platform, paving way for faster payments to micro, small and medium enterprises (MSMEs).TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers. It also enables discounting of invoices of MSME sellers raised against large corporate, allowing them to reduce working capital needs.
5) Answer: d)
Aadhaar Enabled Payment System (AEPS) is a type of payment system which allows Aadhaar card holders to seamlessly make financial transactions through Aadhaar-based authentication. Objective: To empower a bank customer to use Aadhaar as his/her identity to access his/her respective Aadhaar enabled bank account and perform basic banking transactions.
6) Answer: b)
Ujjivan SFB announced the launch of KisanSuvidha loan to offer collateral-free loans for both agriculture &allied activities to small & marginal farmers. The product provides hassle-free loans to individuals with the amount ranging from ₹ 60000 – ₹ 2 Lakh.
7) Answer: b)
The Navy finalized a ₹700 crore contract with Bharat Electronics Limited for establishing an upgraded Naval Airfield Integrated Security System. It will strengthen the perimeter security of its air stations. Its implementation would be completed in 2020.
8) Answer: a)
Government has proposed to launch ‘PradhanMantriShram-Yogi Maandhan’ for the unorganised sector workers with monthly income up to ₹ 15000. The scheme will provide an assured monthly pension of ₹ 3000 from the age of 60 years. The project outlay of the scheme is ₹ 500 Crore.
9) Answer: e)
FM PiyushGoyal has exhorted state-run banks to step up lending to micro, small & medium enterprises, agriculture and housing sectors. The Insolvency and Bankruptcy Code has helped the PSBs recover over ₹ 1 Lakh Cr in the 3 quarters of the current fiscal.
10) Answer: a)
RBI doubled the limit for banks to consider ₹2 crore and more as bulk deposits from the earlier ₹1 crore with an aim to enhance operational freedom of banks. Banks generally offer different rates of interest only on bulk deposits of ₹1 crore and more.