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) _____ is the value of all finished goods and services produced in a country in one year by its nationals.
2) The type of inflation which does not consider the inflation in food and fuel is known as?
a) Headline Inflation
b) Core Inflation
c) Consumer Inflation
d) Real Inflation
e) Nominal Inflation
3) In how many languages, the amount of a bank note is written on it?
e) None of these
4) Which one of the following is not a salient feature of debit card?
a) No bad debts to banks and no suits for recovery
b) No interest earning for banks
c) Works like a normal withdrawal slip
d) 45 days credit is given to the card holder
e) All of the above
5) RBI is the lender of last resort which means _________.
a) RBI advances money to Government whenever there is any emergency
b) Commercial banks has to keep their funds with the RBI
d) It comes to help banks in times of crisis
d) All of the above
e) None of the above
6) In February 2019, the Ministry of Housing and Urban Affairs has issued guidelines to set up EV charging stations. It is expected __________ of total vehicles on roads would be EV by 2030.
7) As per the latest ADB estimates, India’s GDP growth forecast will be ___________ for 2019-2020.
8) As per the new guidelines of RBI, the currency chests should have at least Chest Balance Limit (CBL) of __________.
a) ₹ 100 Crore
b) ₹ 1000 Crore
c) ₹ 500 Crore
d) ₹ 250 Crore
e) ₹ 300 Crore
9) In January 2019, the Union Cabinet approved capital infusion of _________ in Export-Import Bank of India through recapitalization bonds to boost the export financing.
a) ₹ 8000 Crore
b) ₹ 1000 Crore
c) ₹ 10000 Crore
d) ₹ 6000 Crore
e) ₹ 5000 Crore
10) Recently, Pradhan Mantri Shram Yogi Mandhan pension scheme was launched. What is the monthly contribution for the workers in the unorganized sector under the scheme?
a) ₹ 100
b) ₹ 50
c) ₹ 150
d) ₹ 200
e) ₹ 400
1) Answer: d)
Gross national product (GNP) is a broad measure of a nation’s total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals.
2) Answer: b)
Core inflation is also a term used to denote the extent of inflation in an economy. But Core inflation does not consider the inflation in food and fuel. This is a concept derived from headline inflation. There is no index for direct measurement of core inflation and now it is measured by excluding food and fuel items from Wholesale Price Index (WPI) or Consumer Price Index (CPI).
3) Answer: b)
The Indian Currency has a “Language Panel” with the denomination of the note in 15 different regional languages. Besides these 15 languages, the other 2 languages are “HINDI”, the national language, and “ENGLISH”. So that makes it to 17 languages. The languages are Hindi, English, Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu.
4) Answer: d)
A debit card (also known as a bank card or check card) is a plastic payment card that provides the cardholder electronic access to their bank account(s) at a financial institution. Some cards may bear a stored value with which a payment is made, while most relay a message to the cardholder’s bank to withdraw funds from a payer’s designated bank account. The card, where accepted, can be used instead of cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.
5) 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.
6) Answer: a)
According to the Ministry of Union Housing and Urban Affairs, the government expects 25% of the total vehicles on roads would be electric vehicles by 2030. The government has issued a set of guidelines to set up charging stations for electric vehicles across the country, outlining ways to build such fuelling points every 25 km.
7) 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
8) Answer: b)
The currency chests should have CBL of Rs 1000 crore, subject to ground realities and reasonable restrictions. The Reserve Bank of India came out with guidelines for banks to set up new currency chests, which include a minimum area of 1,500 square feet for the strong room. The new chests should have a processing capacity of 6.6 lakh pieces of banknotes per day.
9) Answer: d)
The Union Cabinet approved capital infusion of ₹ 6000 Crore in Export-Import Bank of India through recapitalization bonds to boost the bank’s capacity in export financing. The capital infusion would improve the bank’s capacity to support the exporters and importers.
10) Answer: a)
Pradhan Mantri Shram Yogi Mandhan scheme provides an assured monthly pension of Rs 3,000 with a contribution of 100 rupees per month for unorganized workers after 60 years of age.
The government is providing Rs 500 crore initially for the scheme in the Budget.
The workers under the scheme would have to contribute Rs 100 per month and equal contribution would be paid by the government.
The scheme would cover the unorganized sector workers like autorickshaw driver, whose income is up to Rs 15,000 per month.