LIC AAO 2019 – Financial Awareness Questions (Day – 73)

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.

[WpProQuiz 6557]

1) A long term debt instrument issued by a company yielding a fixed rate of interest is known as___________.

a) Debt equity

b) Equity funds

c) Debentures

d) Commercial papers

e) Yielding borrowings

2) The World Bank signed a $310 million loan agreement for improving electricity of which Indian state?

a) Uttar Pradesh

b) Jharkhand

c) Chhattisgarh

d) Madhya Pradesh

e) Odisha

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) Which of the following component of external sector comes under Current Account in India?

a) FDI

b) Interest payments received by government

c) External Commercial Borrowings

d) FII

e) NRI bank account

5) What is the duration (years) after which a savings account will be treated as inoperative/dormant if there are no transactions in the account?

a) One

b) Two

c) Three

d) Four

e) Five

6) 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

7) Which of the following is true?

a) Headline inflation = core inflation- food and fuel inflation

b) Core inflation= headline inflation- food inflation

c) Inflation = headline inflation – food and fuel inflation

d) Headline inflation=core inflation- food inflation

e) None of the above

8) RBI released calendar for issuance of gold bonds for first half of FY’19. Under it for individual the maximum subscription is____________

a) 2 Kg

b) 4 Kg

c) 8 Kg

d) 12 Kg

e) 1 Kg

9) Tata Steel BSL Ltd has successfully completed the acquisition of Bhushan Energy Limited (BEL) for Rs________

a) 600 cr

b) 900 cr

c) 800 cr

d) 1560 cr

e) 200 cr

10) Mr. Modi approved the increase from Rs2,250 to ___________ a month for girls in National Defence Fund.

a) Rs 3000

b) Rs5000

c) Rs7000

d) Rs 8000

e) Rs 4000

Answers:

1) Answer: c)

Debentures are long term debt security funds that are mainly issued by a company to secure long term fund flow for the organization. They are not secured by any physical asset or collateral.

The difference between the two is actually the function of the place where they are registered and also pay stamp duty for the same.

It is a way of raising funds from the market for various companies.

2) Answer: b)

The Government of India, the Government of Jharkhand and the World Bank signed a $310 million Loan Agreement for Jharkhand Power System Improvement Project to provide reliable, quality, and affordable 24×7 electricity to the citizens of Jharkhand.

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: 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.

5) Answer: b)

If a savings or current account has not had any transactions/activity for over one year, the account is rendered inactive by the bank. Once this inactivity exceeds two years, banks declare such an account as dormant or inoperative.

6) 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.

7) Answer: c)

Core inflation = headline inflation – food and fuel inflation Core CPI weightage = 42.9% Core WPI weightage = 55%

8) Answer: b)

RBI announced calendar for issuance of Sovereign Gold Bonds for the first half of the current fiscal. The Sovereign Gold Bonds (SGB) will be issued every month from June 2019 to September 2019. The maximum limit of subscription is 4 kg for individual.

9) Answer: c)

Tata Steel BSL Ltd has successfully completed the acquisition of Bhushan Energy Limited (BEL) for Rs800 cr. in accordance with the Approved Resolution Plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016.

10) Answer: a)

PM Modi has approved changes to the PM’s Scholarship Scheme for wards of deceased defence personnel under the National Defence Fund. Mr. Modi approved the increase from ₹2,000 to ₹2,500 a month for boys and from ₹2,250 to ₹3,000 a month for girls.

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