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) RBI’s New Rules to Push another Rs ____ Loans into Insolvency stated Credit Suisse.
a) Rs 1.5 lakh crore
b) Rs 2.5 lakh crore
c) Rs 3.5 lakh crore
d) Rs 4.5 lakh crore
e) Rs 5.5 lakh crore
2) Commercial Paper (CP) is issued by___.
a) Govt. of India
c) Primary dealers (PDs)
d) Only a and b is correct
e) Only b and c is correct
3) ‘Financial Inclusion’ is the powerful tool adopted by the Reserve Bank of India to fulfil the basic objective of
a) Upliftment of population lying Below Poverty Line
b) Connecting every Indian to the Country’s Banking System
c) Ensuring bank finance to all the landless agriculturists
d) Overall financial growth backed by inflation control
e) Inclusion of latest technology in Financial Sector of the country
4) Reserves which can act as liquidity buffer for commercial banks during crisis times are
c) CAR and CRR
d) CRR and SLR
5) What would a clerk do if he finds that the amount written on a cheque, in words, and in digits is different?
a) Consider it as a stale cheque
b) Clear the cheque by taking in account value written in words.
c) Clear the cheque by taking in account value written in digits.
d) Reject cheque and impose fine double the value of cheque
e) None of the above.
6) How much amount has been allocated for ‘Pradhan Mantri Shram-Yogi Maandhan’ in the Interim Budget 2019-20?
a) Rs.400 crore
b) Rs.450 crore
c) Rs.500 crore
d) Rs. 600 crore
e) Rs. 750 crore
7) According to data from IRDAI, Non-life insurance firms registered a rise of ________% in their collective premium income to Rs 1.70 lakh crore in March 2019.
8) Which public sector bank has become the first bank in the country that has linked its deposit accounts and short term loans to an external benchmark?
a) State Bank of India (SBI)
b) Canara Bank
c) Indian Bank
d) Bank of Baroda
e) None of these
9) What is the growth projection of Asia-Pacific region in the year 2019, as per the Asian Development Bank?
e) None of these
10) Which bank has launched the 5$ billion Action Plan for Healthy Oceans and Sustainable Blue Economies for the Asia and Pacific region recently?
a) Bank for International Settlements
b) World Bank
c) Asian Infrastructure Investment Bank (AIIB)
d) Asian Development Bank (ADB)
e) None of these
1) Answer: a)
Another Rs 1.5 trillion (or Rs 1.5 lakh crore) of non-performing assets are now likely to be with the National Company Law Tribunal in the next six months,” according to a Credit Suisse report on RBI’s new rules.
2) Answer: e)
Commercial Paper (CP) is an unsecured money market instrument introduced in 1990 which are issued in the form of a promissory note. Corporate, Primary Dealers and All India Financial Institutions are eligible to issue CP.
3) Answer: b)
Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. The one of the basic objectives of financial inclusion is to connect every Indian to the Country’s Banking System.
4) Answer: d)
The RBI has mandated banks to set aside corporation of their deposits as statutory liquidity ratio (SLR) or the minimum amount it must hold in gold, cash or government bonds. In addition banks have to set aside a portion of their deposits as cash with the central bank, a requirement called the cash reserve ratio. These reserves can act as a liquidity buffer for banks during crisis time.
5) Answer: b)
As per section 18 of Negotiable Instrument Act, 1881 where an amount is stated differently in figures and words in the cheque the banker will clear the cheque by taking in account, the amount stated in words to be the amount undertaken or ordered value to be paid to the customer.
6) Answer: c)
The Government has proposed to launch a mega pension yojana ‘Pradhan Mantri Shram – Yogi Maandhan’ for the unorganised sector workers with monthly income upto Rs. 15,000. This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age. A sum of Rs. 500 crore has been allocated for the Scheme.
7) Answer: b)
According to data from IRDAI, Non-life insurance firms registered a rise of 13% in their collective premium income to Rs 1.70 lakh crore in March 2019. The 34 non-life insurers had a gross premium of Rs 1.51 lakh crore in 2017-18. Among these insurers, as many as 25 are categorised as general insurers, seven private sector insurers while the rest of the two are government-owned insurers.
8) Answer: a)
India’s largest bank State Bank of India (SBI) has moved to a new interest rate regime on large savings account deposits with balance above Rs 1 lakh as well as short-term loans like overdraft and cash credit. In March 2019, SBI has announced that it will link its interest rate on large savings account deposits and short term loans to RBI’s repo rate which would be effective from May 1, 2019.By this move, SBI became the first bank in the country which has linked deposit accounts and short term loans to an external benchmark.
Currently, repo rate is 6%. So according to external benchmarking formula, the large savings account with balance above Rs 1 lakh earn less interest rate as compare to small savings account. However, if the repo rate increases and goes above 6.25% then large savings account will earn more interest rate than small savings account.
9) Answer: d)
According to Takehiko Nakao, President and Chairperson of Asian Development Bank, the Asia-Pacific region is supposed to grow at 5.7% in 2019 but the rising trade tensions might hinder its growth. ADB’s Asian Development Outlook 2019 report released in April states that developing Asia comprising of 45 countries is estimated to grow by 5.7% in 2019 (which is pointed out by Nakao).
10) Answer: d)
Asian Development Bank (ADB) launched 5$ billion Action Plan for Healthy Oceans and Sustainable Blue Economies for the Asia and Pacific region. This will support ADB’s developing member countries’ efforts for achieving the Sustainable Development Goals (SDGs), inclusive of the SDG 14: Life below Water. Among the 10 rivers that transports 88% to 95% of plastics into the sea globally, 8 are in Asia and Pacific region.