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 process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as:
a) Economic Policy
b) Monetary Policy
c) Fiscal Policy
d) Credit Policy
e) Budgetary Policy
2) Loans granted by a bank to an exporter popularly known as ‘Export credit’ is guaranteed, in case of default, by which of the following
a) EXIM Bank
b) Ministry of International Trade, GOA
e) None of the given options is true
3) Who amongst the following is the regulator in the financial system of the country?
4) The first one rupee note was printed in India on _______________ with the photo of King George V.
a) 30th November 1915
b) 30th November 1917
c) 30th November 1923
d) 30th November 1933
e) 30th November 1919
5) Ujjivan Small Finance Bank Limited is a bank licensed under ___________ of the Banking Regulation Act, 1949 to carry out small finance bank business in India.
a) Section 25
b) Section 12
c) Section 18
d) Section 22
e) Section 47
6) Recently, the Finance Ministry has asked public sector banks to gradually bring down the government’s equity to __________.
7) World Bank, UN Women & SIDBI joined to launch ₹ 300 Crore worth ‘Women’s livelihood bond’. Under the bond, women entrepreneurs can get the maximum loan amount of _____________ .
a) ₹ 3 Lakh
b) ₹ 5 Lakh
c) ₹ 10 Lakh
d) ₹ 6 Lakh
e) ₹5 Lakh
8) Recently, RBI has raised the criteria for ‘Bulk Deposits’ for banks to _________ for providing more operational freedom to lenders.
a) ₹ 5 Crore
b) ₹ 2 Crore
c) ₹ 10 Crore
d) ₹ 1 Crore
e) ₹ 6 Crore
9) Recently, the Reserve Bank of India has approved the proposal of ___________ for buying a 9.9% stake in Bandhan Bank.
a) HDFC Limited
b) Life Insurance Corporation of India
c) Asian Development Bank
d) National Housing Bank
e) RBL Bank
10) Pradhan Mantri Shram-Yogi Maandhan was launched recently in Gujarat. What is the Project Outlay of the scheme?
a) ₹ 600 Crore
b) ₹ 350 Crore
c) ₹ 500 Crore
d) ₹ 425 Crore
e) ₹ 645 Crore
1) Answer: b)
Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI) is so designed as to maintain the price stability in the economy.
2) Answer: c)
ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce
3) Answer: b)
The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. Example of Financial Regulators: RBI, IRDAI, SEBI, PFRDA.
4) Answer: b)
This smallest paper denomination note from India has travelled through a glorious historical journey all over the world since it was issued for the public. As the argument over the government’s decision to scrap high-value currency notes is still raging, our one-rupee note has completed a century! The first one-rupee note was printed in India on November 30, 1917, with the photo of King George V. This was the time when India was under the British rule.
5) Answer: d)
Ujjivan Small Finance Bank Limited Ujjivan Small Finance Bank Limited is a bank licensed under Section 22 of the Banking Regulation Act, 1949 to carry out small finance bank business in India.
6) Answer: c)
The Finance Ministry has asked public sector banks to progressively bring down the government’s equity to 52%.
The government is essentially a major shareholder. The dilution of government stake would help banks to meet 25% public float norms of the Securities and Exchange Board of India
State Bank of India has initiated step for ₹ 20000 crore share sale through qualified institutional placement. After QIP, the government stake will be diluted from the existing 58.53%.
7) Answer: a)
The Women’s livelihood bond would enable individual women entrepreneurs in sectors like food processing, agriculture, services and small units to borrow around Rs 50,000 to Rs 3 lakh at an annual interest rate of around 13-14% or less.
World Bank, UN Women, and Small Industries Development Bank of India (SIDBI) have joined hands to launch a new social impact bond called Women’s Livelihood Bonds with an initial corpus of Rs 300 crore. The bond has a tenure period of 5 years.
8) Answer: b)
Reserve Bank of India raised the criteria for ‘Bulk Deposits’ for banks to ₹ 2 Crore from ₹ 1 Crore to provide more operational freedom to lenders to raise funds.
The interest rate on bulk deposits is marginally higher than smaller-amount fixed deposits for similar maturity periods.
The banks would maintain their bulk deposit interest rate cards in the core banking system for supervisory review.
9) Answer: a)
The Reserve Bank of India has given its nod to HDFC Ltd for acquiring up to 9.9% stake in Bandhan Bank.
In January 2019, the affordable housing finance arm of HDFC Ltd, Gruh Finance was taken over by Bandhan Bank in a share-swap deal.
10) Answer: c)
The project outlay of the scheme is ₹ 500 Crore. It is funded by the Government of India.
The scheme ensures old age protection for unorganized Workers, whose monthly income is ₹ 15000 per month or less.
It assures a monthly pension of Rs. 3,000 from the age of 60 years. The worker who joins yojana at the age of 29 years would have to contribute only Rs. 100 per month until the age of 60 years.
The Worker who joins the pension yojana at 18 years, would have to contribute Rs. 55 per month.