LIC ADO 2019 – Financial Awareness Questions (Day – 75)

Dear Aspirants, LIC ADO is one of the most important exam in the competitive examination. LIC ADO mains exam consists of three sections i.e. Reasoning ability and Numerical Ability, General knowledge & Current affairs and Insurance & Financial Market Awareness. LIC ADO Insurance Awareness & Financial Market Awareness section comprises of 50 questions. LIC ADO Financial Awareness Questions 2019 play an important role in boosting up the score in mains examination and also helps in the interview. Here we are providing a new series of LIC ADO Financial Awareness Questions 2019. Aspirants can make use of this LIC ADO Financial Awareness Questions 2019, to improve score in the Insurance & Financial Market Awareness section.

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1) With respect to banking, the rate at which Reserve Bank of India extends short term loans to the commercial bank is known as _________.

a) Net Interest Margin

b) Adjusted Interest

c) Repo Rate

d) Reverse Repo Rate

e) Attrition Rate

2) Which among the following is associated only with the concept of current account & capital accounts?

a) Balance of trade

b) Balance of revenue

c) Balance of access

d) Balance of funds

e) None of the above

3) What section of Reserve Bank of India Act, 1934 empowers the government to issue directions to the RBI on policy issues?

a) Section 6

b) Section 7

c) Section 8

d) Section 4

e) Section 9

4) __________ is a form of paper certificate that promises to pay a certain amount to the bearer in the form of fiat money or commodity.

a) Fiduciary Money

b) Fiat Money

c) Commodity Money

d) Commercial Money

e) Narrow Money

5) Consider the following about the Ombudsman Scheme for Non-Banking Financial Companies, 2018. Which among the following is true about NBFC-Ombudsman?

a) NBFC Ombudsman can redress customer complaints against NBFCs under the grounds of complaint specified under Clause 6 of the Scheme.

b) It may award compensation not exceeding rupees 1 million to the complainant for causing mental agony and harassment.

c) As on date, NBFC Ombudsman offices are located only in Mumbai and New Delhi.

d) It does not charge any fee for filing and resolving customers’ complaints.

e) (B), (C) and (D) only

6) Banking Outlet is a fixed-point service delivery unit for Commercial Banks, Small Finance Bank and Payment Bank. It should provide services for a minimum of _______ hours per day.

a) 2 hours

b) 3 hours

c) 4 hours

d) 6 hours

e) 5 hours

7) Which digital wallet company recently partnered with HDFC Bank to drive incremental digital spend.

a) Itz Cash

b) Phonepe

c) Google pay

d) Amazon Pay

e) PayPal

8) Which of the following banks, recently launched India’s first interactive Credit Card with buttons?

a) IDBI

b) IndusInd Bank

c) Canara Bank

d) Axis Bank

e) Yes Bank

9) LIC-owned IDBI Bank in April 2019 reduced its lending rates by _____ basis points for most of the tenors.

a) 5

b) 10

c) 25

d) 20

e) 100

10) Reserve Bank of India (RBI) will shortly issue 20 denomination banknotes, in the Mahatma Gandhi (New) series. The dimension of the new 20 note will be ___________.

a) 61 mm x 127 mm

b) 63 mm x 129 mm

c) 66 mm x 129 mm

d) 63 mm x 139 mm

e) 65 mm x 123 mm

Answers:

1) Answer: c)

Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. The current repo rate is 5.75%.

2) Answer: e)

Balance of Payments is defined as the total volume of transactions undertaken by a country in the international account over a financial year. It is mainly categorized under two heads and they are current account and capital account.

It summarizes all transactions that a country’s individuals, companies and government bodies complete with individuals, companies and government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments such as foreign aid and remittances.

3) Answer: b)

Section 7 of the Reserve Bank of India Act, 1934 empowers the government to issue a direction to the RBI on policy issues.

The government has invoked Section 7 which has never been used before. The law provides for the government to give instructions to the central bank based on the dialogue between the two.

4) Answer: a)

Fiduciary Money is a form of paper certificate that promises to pay a certain amount to the bearer in the form of fiat money or commodity.

It is not declared as a legal tender, so can be reused as a medium of settlement.

Example – Cheques, demand drafts, etc.

5) Answer: d)

The NBFC Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against NBFCs for deficiency in certain services covered under the grounds of complaint specified under Clause 8 of the Scheme.

As on date, four NBFC Ombudsman has been appointed with their offices located at Chennai, Kolkata, New Delhi and Mumbai.

It may award compensation not exceeding rupees 0.1 million to the complainant for causing mental agony and harassment. It does not charge any fee for filing and resolving customers’ complaints.

6) Answer: c)

Banking Outlet is a fixed-point service delivery unit for a Domestic Scheduled Commercial Bank, Small Finance Bank and Payment Bank.

It is manned by either bank’s staff or it’s Business Correspondent where services of acceptance of deposits, encashment of cheques/ cash withdrawal or lending of money are provided for a minimum of 4 hours per dayfor at least five days a week.

7) Answer: e)

PayPal partnered with HDFC Bank to drive incremental digital spend. Now, HDFC cards will be presented as a payment option during enrolment and subsequent payments, It will also facilitate consumers to easily open PayPal accounts.

8) Answer: b)

IndusInd Bank launched ‘IndusInd Bank Nexxt Credit Card’ – India’s first interactive Credit Card with buttons. It empowers customers with a choice of payment options such as EMI, Reward Points or Credit at the push of a button, on the card, at the Point of Sale. It also makes redeeming Reward Points or opting for EMI payments convenient.

9) Answer: a)

LIC-owned IDBI Bank has reduced its lending rates by 5 basis points for most of the tenors. The new one-year marginal cost of funds-based lending rate (MCLR), to which most of the loan pricing is based on, was reduced to 9%.

10) Answer: b)

The Reserve Bank of India (RBI) will shortly issue ₹20 denomination banknotes, in the Mahatma Gandhi (New) series, bearing the signature of the central bank’s governor Shaktikanta Das. The dimension of the new ₹20 note will be 63 mm x 129 mm.

“The ₹20 note will be greenish-yellow in colour. It has a motif of Ellora Caves on the reverse, depicting the country’s cultural heritage.”

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