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) Planning for Retirement Saving is a type of
a) Banking Option
b) Stock Market Option
d) Financial Planning
e) Mutual Fund Benefit
2) Which of the following component of external sector comes under Current Account in India?
b) Interest payments received by government
c) External Commercial Borrowings
e) NRI bank account
3) Demand draft is a negotiable instrument issued by a certain bank that directs the other bank or one of its own branches to pay a certain sum of money to the payee. A demand draft in which the payment is made only after the specified period is known as ____.
a) Post Dated Demand Draft
b) Term Draft
c) Time Draft
d) Ante Dated Demand Draft
e) Other than the given options
4) RBI is the lender of the last resort. It means _________.
a) RBI advances money to Government whenever there is any emergency
b) Commercial banks has to keep their funds with the RBI
c) It comes to help banks in times of crisis
d) All of the above
e) None of the above
5) What is the maximum limit for a loan under the Tarun scheme of Mudra Bank loan Yojana?
a) Rs. 20 Lakhs
b) Rs. 5 Lakhs
c) Rs. 10 Lakhs
d) Rs. 15 Lakh
e) None of these
6) Which of the following banks has extended the Rs 4,100 crore loan for Visakhapatnam (VIZAG) Metro Rail project in Andhra Pradesh?
a) ICICI Bank
b) HDFC Bank
c) Korea Exim Bank
d) Central Bank of India
e) Union Bank of India
7) As per the Interim Budget 2019-20, how much amount has already been recovered in favour of banks and creditors?
a) Close to Rs. 1 lakh crore
b) Close to Rs. 2 lakh crore
c) Close to Rs. 3 lakh crore
d) Close to Rs. 4 lakh crore
e) Close to Rs. 5 lakh crore
8) Which app launched for mutual fund investments, SIPs begin at Rs 100?
a) Paytm Money app
b) FINO Money app
c) Airtel Money App
d) JIO Money App
e) None of the above
9) The Reserve Bank of India (RBI) has put into circulation which denomination banknotes signed by its Governor Shaktikanta Das?
a) 2000 Rupees
b) 500 Rupees
c) 100 Rupees
d) 50 Rupees
e) None of these
10) Which of the following banks has sanctioned loans worth Rs 689 crore to over 1,600 Micro, Small and Medium Enterprises (MSMEs)?
a) Bank of Baroda
b) Bank of India
c) Corporation Bank
d) Punjab National Bank
e) Union Bank of India
1) Answer: d)
Planning for Retirement Saving is a type of Financial Planning.
2) Answer: b)
- The Balance of payments for a country is calculated by the difference of Capital Account and Current account. Both the accounts have different components included in it
- Current Account: Components – Net Import-Export (Import minus Export); Incomes (Profits, Interests, Dividend); Transfers (Donations, Gifts. etc.)
- Capital Account: Components – Investment (FDI, FII); Loan (Government Borrowings, External commercial borrowings); Bank account transfers by NRIs, etc.
3) Answer: c)
Time Draft – The type of demand draft in which the payment is made only after a specified period.
Demand draft is a negotiable instrument issued by a certain bank that directs the other bank or one of its own branches to pay a certain sum of money to the payee.
4) Answer: c)
A lender of last resort is an institution, usually a country’s central bank that offers loans to banks or other eligible institutions against eligible securities that are experiencing financial difficulty or are considered highly risky or near collapse.
5) Answer: c)
Maximum limit of tarun under mudra bank loan yojana is 10 Lakhs.
The scheme is further classified into three categories namely Shishu, Kishor and Tarun.
Shishu scheme- This is the category that is required by most startups. This category is suitable for those who are about to start their business and they require a financial support. They can avail a loan of up to Rs. 50,000.
Kishor scheme- This is meant for those who have already started their business, but they require the money for getting established. Such units can avail a loan of Rs. 50,000 up to Rs. 5 lakhs.
Tarun scheme- Those businesses which are already established and they are completely set up, but they require some financial support so that they can continue their business as it is. These business units can avail a loan of up to Rs. 10 lakh.
6) Answer: c)
Korea Exim Bank has extended a Rs 4,100 crore loan for Visakhapatnam (VIZAG) Metro Rail project. Vizag Metro is a planned rapid transit system in the Indian city of Visakhapatnam, Andhra Pradesh.
7) Answer: c)
As per the Interim Budget 2019-20, an amount of close to Rs. 3 lakh crore has already been recovered in favour of banks and creditors. To restore the health of public sector banks, recapitalisation has been done with an investment of Rs. 2.6 lakh crore. Amalgamation of banks has also been done to reap the benefits of economies of scale, improved access to capital and to cover a larger geographical spread.
8) Answer: a)
Paytm Money app launched for mutual fund investments, SIPs begin at Rs 100.
9) Answer: d)
The Reserve Bank of India (RBI) has put into circulation 50 rupees denomination banknotes signed by its Governor Shaktikanta Das.
All banknotes in the denomination of 50 issued by the Reserve Bank in the past will continue to be legal tender.
10) Answer: d)
Punjab National Bank (PNB) has sanctioned loans worth Rs 689 crore to over 1,600 Micro, Small and Medium Enterprises (MSMEs).
It has sanctioned it through the ‘psbloansin59minutes.com’ portal as part of its effort to promote such industries.
Under the Mudra Yojana, the bank has offered loan to over 2.69 lakh small entrepreneurs till February 14, 2019.
Related Articles :