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)What do you understand by term ‘Venture Capital’?
a) A short-term capital provided to industries
b) A long-term start-up capital provided to new entrepreneurs
c) Funds provided to industries at times of incurring losses
d) Funds provided for replacement and renovation of industries
e) None of these
2)REER is the weighted average of nominal exchange rates, adjusted for inflation. What REER reflects?
a) Value of Indian Currency in International Market
b) Degree of External Competitiveness of Indian Products
c) Degree of Domestic Competitiveness of Indian Products
d) Depreciation Rate of Indian Currency
e) Inflation Rate of Indian Market
3) A foreign company can access Indian securities market only by issuing IDRs. What “D” denotes in IDR?
d) Day Trading
4) Which article of the Indian Constitution envisages ‘Annual Financial Statement’ generally known as ‘Budget’?
a) Article 282
b) Article 110
c) Article 360
d) Article 105
e) Article 112
5)_______ is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears.
a) Cheap Money
b) Dear Money
c) Hot Money
d) Broad Money
e) Narrow Money
6)“Ayushman Bharat scheme” will provide free insurance of upto ______ per family per year at any government or private hospitals all over India.
a) Rs. 5 lakhs
b) Rs. 3 lakhs
c) Rs. 2 lakhs
d) Rs. 1 lakhs
e) Rs. 8 lakhs
7)What amount of loan agreement was recently signed between Indian government and ‘Asian Development Bank’ to improve state highways in Bihar?
a) $100 million
b) $150 million
c) $225 million
d) $200 million
e) $250 million
8)The Reserve Bank of India (RBI) has announced to transfer Rs. 28,000 crores as interim dividend to the Government of India in the current Financial Year (FY) 2018-19. What was the total amount earned by ‘Union Government’ as dividend from RBI in fiscal year 2018-19?
a) Rs. 28,000 crores
b) Rs. 36,000 crores
c) Rs. 82,000 crores
d) Rs. 75,000 crores
e) Rs. 68,000 crores
9)Which organization has signed USD 100 million agreement with ‘Green Climate Fund’ to boost solar power projects in India?
e) NITI Aayog
10)According to Reserve Bank of India, bank credit rose to __________ percent for the fortnight to March 29?
e) None of these
1) Answer: b)
Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
2) Answer: b)
Real Effective Exchange Rate (REER) is the weighted average of nominal exchange rates, adjusted for inflation. REER is calculated on the basis of NEER (Nominal Effective Exchange Rate). REER captures inflation differentials between India and its major trading partners and reflects the degree of external competitiveness of Indian products.
3) Answer: e)
A foreign company desirous of accessing Indian securities market for the purpose of raising funds is not permitted to directly list its equity shares on an Indian stock exchange. It can only do it by issuing Indian Depository Receipts (IDRs).
4) Answer: e)
Article 112 of the Indian Constitution envisages the Annual Financial Statement of the government. This annual statement displays the revenue and expenditure of the last year and estimates of revenue and expenditure for the coming financial year
5) Answer: c)
Hot Money is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears.
6) Answer: a)
The government-sponsored health insurance scheme will provide free coverage of upto Rs 5 lakh per family per year at any government or even empanelled private hospitals all over India.
7) Answer: d)
In November, 2018, the Asian Development Bank (ADB) and the Government of India signed a $200 million loan in New Delhi to fund upgradation of 230 kilometers State Highways in Bihar under ‘Bihar State Highways III Project (BSHP-III)’.
8) Answer: e)
The Reserve Bank of India (RBI) has announced to transfer Rs. 28,000 crores as interim dividend to the Government of India in the current Financial Year (FY) 2018-19, in order to enable the union government to meet its revised fiscal deficit target of 3.4% of the GDP for FY19. In August 2018, it transferred Rs. 40,000 crore taking the total to Rs. 68,000 crores as dividend for the 2018-19 fiscal. The RBI Act, 1934 requires RBI to pay the Government its surplus after making provisions for bad and doubtful debts, depreciation in assets and contribution to staff and superannuation.
9) Answer: b)
In December, 2018, the National Bank for Agriculture and Rural Development (NABARD) signed a loan agreement worth USD 100 million with Green Climate Fund (GCF) to boost rooftop solar power capacity projects through the private sector participation. NABARD is the NIE (National Implementation Entity) for ‘Adaptation Fund’ of UNFCC and National Adaption Fund for Climate Change (NAFCC).
10) Answer: a)
According to the data of Reserve Bank of India, which was released on 11th April, 2019, bank credit rose 13.24% to Rs 97.67 lakh crore for the fortnight to March 29.This is the second consecutive robust credit growth after the same had declined to 4.54 percent in FY17 at Rs 78.41 lakh crore, which was the lowest since 5 decades.Deposits have grown by 10.03 percent to Rs 125.72 lakh crore during the same period.