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) The amount which the shareholders will collectively get if any mutual fund is dissolved or liquidated is known as?
a) Expense Ratio
b) Exit Amount
c) Net Asset Value
e) Entry Amount
2) Which of the following is India’s first Asset Reconstruction Company?
b) Pegasus Assets Reconstruction Private Limited
c) Invent Assets Securitisation & Reconstruction Private Limited
d) UV Asset Reconstruction Company Limited
3) Who regulates Infrastructure Investment Trust (InvITs)?
4) Foreign Companies are allowed to access the Indian Capital Market by issuing __________
e) All of these
5) A __________ is a zero coupon bond whose maturity is very high.
a) Floating Rate Bond
c) Deep Discount Bond
6) Which bank has planned to raise ₹ 2045 crore by issuing Basel III-compliant bonds?
a) Bank of Baroda
b) Canara Bank
c) HDFC Bank
d) State Bank of India
e) Axis Bank
7) RBI slapped fine of Rs 1 crore on which bank for not monitoring the end use of funds in a certain case?
a) Axis Bank
b) Punjab National Bank
c) ICICI Bank
d) State Bank of India
e) Bank of India
8) RBI announced a transfer of interim surplus amounting to Rs __________ crores to the centre.
9) RBI has capped outstanding External Commercial Borrowings (ECBs) at ______% of country’s GDP.
10) As per Moody’s report, Indian economy is expected to grow at ____________ in calendar year 2019 and 2020
1) Answer: c)
Net Asset Value of a fund is the market value of the asset minus the liability on the day of valuation.
2) Answer: e)
Asset Reconstruction Company (India) Ltd. (Arcil), India’s first and largest asset reconstruction company
3) Answer: c)
The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
4) Answer: c)
A foreign company can access Indian securities market for raising funds through issue of Indian Depository Receipts (IDRs).
5) Answer: c)
A Deep Discount Bond is a zero coupon bond whose maturity is very high.
6) Answer: d)
State Bank of India raised ₹2,045 crore by issuing Basel III-compliant bonds. The bonds are debentures of face value of ₹10 lakh each bearing coupon of 9.37% per annum payable annually with a call option after 5 years.
7) Answer: d)
Reserve Bank of India levied a penalty of Rs 1 crore on the State bank of India for not monitoring the end use of funds in respect of one of its borrowers, exercising of powers conferred under Section 47 A of the Banking Regulation Act, 1949.
8) Answer: d)
RBI decided to transfer an interim surplus of Rs 28,000 crore to the central government for the half-year ended 31st Dec 2018. The decision has been based on a limited audit review and after applying the extant economic capital framework
9) Answer: c)
RBI caps funds raised via External Commercial Borrowing (ECB) at 6.5% of the country’s GDP. Based on the GDP figures for March 31, 2018 the soft limit works out to be $160 billion. Outstanding stock of ECB as on September 30, 2018 was $126.29 billion.
As per Moody’s report, Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020. In 2018-19 fiscal Indian economy is estimated to have grown 7%, lower than 7.2% in 2017-18.