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.
1) What is a Hard Loan?
a) A loan which has immovable property as collateral
b) A loan which has movable assets as collateral
c) A foreign loan that must be paid in hard currency
d) A loan of “last resort”
e) A loan taken by farmers in harsh weather conditions.
2) The GST Council has reduced the tax on under construction residential properties to how much per cent?
3) Recently, RBI has increased the investment limit for FY 20 for foreign portfolio investors to 6% in ____________.
a) Govt Securities
b) State Development Loans
c) Corporate bonds
d) Hybrid bonds
e) Commercial Paper
4) A long term debt instrument issued by a company yielding a fixed rate of interest is known as___________.
a) Debt equity
b) Equity funds
d) Commercial papers
e) Yielding borrowings
5) It is a tax on the personal income of the individuals, Hindu Undivided Families(HUFs), partnership firms, etc.
a) Income tax (Personal Income tax)
b) Customs Duties
c) Goods and Services tax
d) Union Excise Duties
e) All of these
6) 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
7) The security which is offered to a bank in case of a loan is taken is known as which among the following?
c) Primary Security
d) Secondary Security
8) Who among the following is the current Chief Executive Officer of Pradhan Mantri Fasal Bima Yojana?
a) Atul Pradhan
b) Ashish Kumar Bhutani
c) Arun Baranwala
d) Sujeet Singh Thakur
e) K P Reddy
9) The Centre and the Asian Development Bank (ADB) have signed a _______________ million-dollar loan agreement to operationalize two lines of the Mumbai Metro Rail System.
a) 75 million dollars
b) 469 million dollars
c) 725 million dollars
d) 926 million dollars
e) None of these
10) Reliance Nippon Life Asset Management (RNAM) has partnered recently (April 2019) with which company to enable the customers of Reliance Mutual Fund to carry out voice-based financial transaction?
c) Tata consultancy Services
1) Answer: c)
DEFINITION of ‘Hard Loan’ A foreign loan that must be paid in the currency of a nation that has stability and a reputation abroad for economic strength (a hard currency). For example a loan agreement between a Brazilian company and an Argentinean company where the debt is to be paid in U.S. dollars.
2) Answer: d)
On 24th Feb 2019, GST Council reduced the tax on under construction residential properties to5 per cent from 12 per cent to boost the realty sector.
The new rates will be applicable from 1 April 2019. This decision of the GST council is expected to push demand and increase sales of under-construction properties.
The Council has also cut GST rates on affordable housing to 1 per cent from the current 8 per cent and expanded the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq metre in metros and 90 sq metre in non-metro cities.
3) Answer: a)
The Reserve Bank of India increased the investment limit for FY2019-20 for foreign portfolio investors (FPI) in Central government securities to 6% of the outstanding stock of securities from 5.5% in FY2018-19.
The limit for FPI investment in State development loans (SDLs) and corporate bonds has been left unchanged at 2 % and 9% of outstanding stocks.
4) 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.
5) Answer: a)
Income tax (Personal Income tax) is a tax on the personal income of the individuals, Hindu Undivided Families(HUFs), partnership firms, etc. Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. Customs Duty is a tax imposed on imports and exports of goods. Union excise duty is a type of indirect tax on goods manufactured in India.
6) 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%.
7) Answer: e)
In case of a bank extending loan to an individual, it wants to ensure that in case of the loan becoming NPA, the bank can recover the money somehow. To meet this demand, a bank takes an asset as the security to cover the risk of lending to an individual. This acts as the security for the loan given by the bank
8) Answer: b)
Ashish Kumar Bhutani is the current Chief Executive Officer (CEO) of Pradhan Mantri Fasal Bima Yojana (PMFBY). PMFBY incorporates the best features of all previous schemes and at the same time, all previous shortcomings and weaknesses have been removed to ensure faster insurance services or reliefs to farmers.
9) Answer: d)
The Centre and the Asian Development Bank (ADB) have signed a 926 million dollar loan agreement to operationalize two lines of the Mumbai Metro Rail System.
10) Answer: b)
Reliance Nippon Life Asset Management (RNAM) has partnered with Google, becomes the first Indian company to launch voice-based financial transactions.