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 is the Paid-up Share Capital of Agriculture Insurance Company of India?
a) Rs. 200 crores
b) Rs. 500 crores
c) Rs. 750 crores
d) Rs. 100 crores
e) Rs. 600 crores
2) Which of the following statements in context of Treasury bills (T- Bills) is not correct?
a) T-bills offer short-term investment opportunities, generally up to one year
b) T-bills are available for a minimum amount of Rs.25,000
c) T-bills auctions are held at the SEBI headquarter.
d) Both a) and b)
e) All of the above are true
3) Which of the following not a function of Reserve Bank of India?
a) Formulates, implements and monitors the monetary policy.
b) Manages the Foreign Exchange Management Act (FEMA), 1999.
c) Approving rules and laws pertaining to the stock exchanges.
d) Maintains banking accounts of all scheduled banks.
e) All of the above
4) In which of the following years Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI?
5) Which of the following terms is used to define rise in the price of a security or in the value of one currency in terms of another?
c) Accrued Interest
e) None of the above
6) Recently launched LIC’s Micro Bachat plan provides the maximum coverage up to ___________.
7) In March 2019, ICICI Lombard partnered with ____________ to offer cyber-insurance cover of ₹ 50000 for protection against the online frauds.
b) Free Charge
e) Google Pay
8) In the first half of FY20, Government is set to raise Rs ______ lakh crore through gilts i.e. instruments issued by the government to borrow money from the market.
e) None of the above
9) The Reserve Bank of India recently, came out with guidelines for banks to set up new currency chests. As per RBI norms the currency chests should have CBL of ₹_______ crore.
10) In order to remain under FPI category, Portfolio Investment by any single investor or investor group should not exceed ________% of the equity of an Indian company.
1) Answer: a)
The paid- up share capital of Agriculture Insurance Company of India is Rs. 200 crores, while the Authorised Share Capital – Rs. 1500 Crores. It was incorporated in 20th December 2002 and commenced operations on 1st April 2003.
2) Answer: c)
T-bills auctions are held at the Reserve Bank of India, Mumbai. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are useful in managing short-term liquidity. At present, the Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day.
3) Answer: c)
SEBI approves rules and laws pertaining to the stock exchanges.To protect the rights of investors and ensuring safety to their investment.To prevent fraudulent and malpractices by having balance between self-regulation of business and its statutory regulations.To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.
4) Answer: a)
In the year 2015, Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI. The merger was precipitated with the National Spot Exchange Ltd. scam, which involved a payment crisis of more than Rs. 5000 crore. This was considered a regulatory failure by the FMC.
5) Answer: a)
Appreciation is a rise in the price of a security or in the value of one currency in terms of another. It is Increase in the value of an asset which is in excess of the asset’s depreciable cost and is due to economic and other factors (such as scarcity or inflation) and not due to additions or improvements made to it.
6) Answer: d)
LIC’s Micro Bachat was recently, launched which provide coverage up to ₹ 2 lakh. The minimum basic sum assured is ₹ 50,000.It is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings.It provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholders.
7) Answer: c)
ICICI Lombard General Insurance and Mobikwik have partnered to offer cyber-insurance cover of ₹ 50000 for protection against online frauds. It aims to provide protection against unauthorized and fraudulent transactions online, across bank accounts, debit/credit cards and mobile wallets. The cyber-insurance can be availed digitally through an app at only ₹ 99 per month and with a sum insured of ₹ 50000.
8) Answer: a)
Government is set to raise Rs 4.42 lakh crore through gilts in the first half of FY20. The borrowing for the second half is set at Rs 2.68 lakh crore. The Centre will auction Rs 17,000 crore of gilts per week during April-September.
9) Answer: b)
RBI appointed committee recommended that RBI should encourage banks to open large currency chests with modern facilities and Chest Balance Limit (CBL) of at least ₹1,000 crore. As per the recommendation currency chests should have CBL of ₹1,000 crore, subject to ground realities and reasonable restrictions, at the discretion of the Reserve Bank.
10) Answer: b)
Portfolio Investment by any single investor or investor group should not exceed 10% of the equity of an Indian company, beyond which it is treated as FDI. Foreign Portfolio Investor (FPI) stands for those investors who hold a short-term view on the company, in contrast to Foreign Direct Investors (FDI).
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