LIC AAO 2019 – Financial Awareness Questions (Day – 09)

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.

LIC AAO Financial Awareness Questions Day -09

maximum of 10 points
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1) Which of the following is not considered as a means of foreign capital inflow into the country?

a) FDI

b) FCNR accounts

c) FII

d) No frills account

e) None of these

2) Which of the following is not a term associated with the stock markets directly?

a) Bear hug

b) Dividend

c) Insider trading

d) Interest rate

e) Sensex

3)  When Indian companies raise funds overseas what isthe process known is as?

a) Participatory notes

b) Foreign currency non-resident accounts

c) Foreign currency convertible bonds

d) Nostro accounts

e) None of these

4) What is the duration of Public Provident Fund (PPF) account?

a) 3 years

b) 5 years

c) 9 years

d) 15 years

e) 18 year

5) The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as

a) Cash crunch

b) Liquidity

c) Credit

d) Marketability

e) None of these

6) The Reserve Bank of India raised the limit of collateral-free agricultural loans to Rs. 1.6 lakh from the current __________ with a view to help small and marginal farmers.

a) Rs. 1.5 lakh

b) Rs. 1.0 lakh

c) Rs. 1.3 lakh

d) Rs. 1.4 lakh

e) Rs. 1.2 lakh

7) Reserve Bank of India decided to treat deposits to over ______ as ‘bulk’ as they increased the limit for the same from the earlier _______.

a) Rs.1 crore, Rs.50 lakhs

b) Rs.2 crore, Rs.1.5 crore

c) Rs.2 crore, Rs.1 crore

d) Rs.1.5 crore, Rs.75 lakhs

e) Rs.5 crore, Rs.2.5 crore

8) The Ministry of Environment launched a three-year Asiatic Lion Conservation Project in collaboration with the state of Gujarat. What amount the ministry has allocated for the project?

a) Rs. 79 crores

b) Rs. 59 crores

c) Rs. 90 crores

d) Rs. 110 crores

e) Rs. 45 crores

9) Which company got the top spot in the `WPP and Kantar Millward Brown’s BrandZ 75 Most Valuable Indian Brands’ ranking?

a) Life Insurance Company

b) TCS

c) HDFC

d) Flipkart

e) Paytm

10) The Andhra Pradesh Government has launched which mobile platform, to enable small-scale farmers to market their produce at reasonable prices?

a) e-Bandhan

b) e-Suraksha

c) e-Rythu

d) e-Friendly

e) e-Agri

Answers :

1) Answer: d)

No frills accounts is not considered as a means of foreign capital inflow into the country.

2) Answer: d)

Interest Rate is not a term associated with the stock markets directly.

3) Answer: c)

A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer’s domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument.

4) Answer: d)

A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity. The balance continues to earn interest at the normal rate. The minimum investment of Rs 500 has to be maintained even for accounts extended beyond 15 years.

5) Answer: b)

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.

6) Answer: b)

The Reserve Bank of India raised the limit of collateral-free agricultural loans to Rs. 1.6 lakh from the current Rs. 1 lakh with a view to help small and marginal farmers. The central bank also decided to set up an internal working group (IWG) to review agricultural credit and arrive at a workable policy solution.

7) Answer: c)

Reserve Bank of India decided to treat deposits to over Rs.2 crore as ‘bulk’ as they doubled the limit for the same from the earlier Rs.1crore.

8) Answer: b)

The Ministry of Environment launched a three-year Asiatic Lion Conservation Project in collaboration with the state of Gujarat. The Ministry of Environment, Forests and Climate Change (MoEFCC) allocated Rs. 59 crores, Gujarat government also implemented Rs. 80 crore for the project.

9) Answer: c)

HDFC Bank retained its top spot in the `WPP and Kantar Millward Brown’s BrandZ 75 Most Valuable Indian Brands’ ranking, with a rise of 21 per cent in its brand value to USD 21.7 billion. The new 2018 ranking has grown from 50 to 75 brands to reflect the strength of India’s growing economy and a marketplace in which more local brands are emerging to present consumers with increased choice. Insurance brand LIC comes in at the second spot ($19.8 billion), while Tata Consultancy Services ranked third ($15 billion).

10) Answer: c)

The Andhra Pradesh chief minister N. Chandrababu Naidu has launched a mobile platform, e-Rythu (e-farmer in Telugu) to enable small-scale farmers to market their produce at reasonable prices. The objective of the ‘E-Rythu’ is to digitize agriculture marketplaces, payments, workflows, and provide farmers with an easy and secure way to buy, sell & receive payments for agricultural products.

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