LIC AAO 2019 – Financial Awareness Questions (Day – 52)

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.

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1) Under SARFAESI Act, to serve the purpose of Asset reconstruction a company registered under ____________ of the SARFAESI Act 2002 comes into action.

a) Section 1

b) Section 3

c) Section 5

d) Section 7

e) Section 9

2) Which of the following is/are a feature of Close – ended Mutual Fund scheme?

a) It does not have a fixed maturity period

b) Scheme has a stipulated maturity period

c) Net Asset Value (NAV) per unit is declared on a daily basis

d) Both 1 & 3

e) Both 2 & 3

3) Owners of ______________ are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly.

a) Bonus Shares

b) Preference shares

c) Participating Preference Share

d) Commercial shares

e) Convertible shares

4) In reference to secondary capital market, what does ‘P’ in MAPIN stands for?

a) Public

b) Participant

c) Provision

d) Payment

e) Permanent

5) Which of the following is a financial instrument that pays no interest while the investor holds it?

a) Inflation Indexed bond

b) Negotiable bond

c) Treasury bills

d) Commercial paper

e) Zero-coupon bond

6) As per the latest ADB estimates, India’s GDP growth forecast will be ___________ for 2019 -2020.

a) 7%

b) 7.3%

c) 7.2%

d) 7.5%

e) 7.4%

7) The Insolvency and Bankruptcy Board of India (IBBI) signed a MoU with ______ for implementation of the IBC, 2016 (Code).

a) SIDBI

b) All Public Sector Banks

c) RBI

d) SEBI

e) Both (2) and (3)

8) Under Pradhan Mantri Fasal Bima Yojana (PMFBY), what is the premium charged for Kharif crops?

a) 1.5%

b) 1%

c) 2%

d) 3%

e) 2.5%

9) Which is the largest fintech lending platform as per a report Credit Suisse?

a) pmmudra.com

b) iciciloanin60minutes.com

c) Idbiloan.com

d) hdfchousingloans.com

e) PSBloansin59minutes.com

10) Which of the following countries recently, launched the world’s first sovereign blue bond i.e. a pioneering financial instrument designed to support sustainable marine and fisheries projects?

a) Indonesia

b) Brunei

c) Seychelles

d) Fiji

e) Maldives

Answers :

1) Answer: b)

To serve the purpose of Asset reconstruction a company registered under Section 3 of the Securitization & Reconstruction of financial assets & Enforcement of security interest (SARFAESI) Act 2002 comes into action. Asset reconstruction means the acquisition by any securitization company or reconstruction company of any right or interest of any bank or financial institution in any financial assistance for the purpose of realization of such financial assistance.

2) Answer: b)

A close-ended fund or scheme has a stipulated maturity period e.g. 3-5 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the new fund offer. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. In case of an Open-ended Mutual fund scheme; investors can conveniently buy and sell units at Net Asset Value (NAV) per unit which is declared on a daily basis.

3) Answer: b)

Owners of Preference shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the company’s creditors, bondholders / debenture holders.

4) Answer: b)

MAPIN (Market Participant Identification Number) is the Market Participants and Investors Integrated Database. The SEBI (Central Database of Market Participants) Regulations, 2003 were notified on November 20, 2003 under which, all the participants in the Indian Securities Market viz., SEBI registered intermediaries, listed companies and their associates and the investors were required to obtain a Unique Identification Number (UIN) in order to enable the regulator to establish the identity of person(s).

5) Answer: e)

A Zero-coupon bond does not pay any interest payments to the bondholder. It is sold originally at a substantial discount from its eventual maturity value, paying the investor its full-face value when it comes due, with the difference between what he paid initially and what he finally collected representing the interest he would have received over the years it was held.

6) Answer: c)

The Asian Development Bank (ADB) has cut its India GDP growth forecast for 2019-20 to 7.2%. ADB had estimated 7.6% economic growth earlier. ADB is the first multilateral lending agency to slash India’s growth estimate.

ADB HQ- Mandaluyong, Philippines

President- Takehiko Nakao

7) Answer: d)

The Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) for implementation of the Insolvency and Bankruptcy Code, 2016 (Code) and its allied rules and regulations

8) Answer: c)

Under Pradhan Mantri Fasal Bima Yojana (PMFBY), there will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In the case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.The balance premium will be paid by the Government to provide the full insured amount to the farmers against crop loss on account of natural calamities

9) Answer: e)

Web portal PSBloansin59minutes.com launched recently emerged as the largest online lending platform, according to a report by global financial firm Credit Suisse. It provides a credit of up to Rs 1 crore to MSMEs in just 59 minutes. PSBloansin59minutes.com was launched by PM Narendra Modi.

10) Answer: c)

Seychelles launched the world’s first sovereign blue bond – a pioneering financial instrument designed to support sustainable marine and fisheries projects. It raised US$15 million from international investors & demonstrates the potential for countries to harness capital markets for financing the sustainable use of marine resources.

 

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