Notification

Apply Online

Study Guide

Practice/Test

Test Day

LIC ADO Financial Awareness Quiz

Home > > Tutorial

5 Steps - 3 Clicks

LIC ADO Financial Awareness Quiz

Introduction

What is meant by Financial Awareness ? Financial awareness has been linked to such prudent behavior. Conceptually, its foundation is financial literacy, which is defined as: The ability to use knowledge and skills to effectively manage financial resources efficiently at a personal-level and through the life cycle.
Aspirants of LIC Apprentice Development Officer (ADO) 2019, who are willing to enhance their career with insurance sector can check all the details in LIC ADOs 2019 – Official Notification issued by LIC. The online examination Preliminary is scheduled to be conducted in [latex]{6}^{th}[/latex] and [latex]{13}^{th}[/latex] July, 2019 (Tentatively), Mains exam is scheduled to be conducted in [latex]{10}^{th}[/latex] August, 2019 .
Click Here - For Official Website
Financial Awareness is a section that is present in most of the banking competitive exams. Candidates planning to take up employment in the banking sector must be aware of many of the terms policies and other such important information related with financial awareness. The article LIC ADO Financial Awareness Quiz provides quiz sets useful to the candidates while preparing Various Banking & Government Exams like SBI PO, SBI Clerk, SSC CPO, SSC CHSL.

Quiz

LIC ADO Financial Awareness Quiz - Set 1

1. An emerging market economy is highly classified with relatively- one in which the country is becoming a developed nation and is determined through many socio _____

2. RBI’s New Rules To Push Another Rs ____ Loans Into Insolvency stated Credit Suisse.

3. _____ is the value of all finished goods and services produced in a country in one year by its nationals.

4. Odisha CM Naveen Patnaik announced a Rs10,000 crore scheme named KALIA for the overall development of farmers. KALIA stands for _______.

5. According to data released by Insurance Regulatory and Development Authority of India (IRDAI), what percentage of life insurance policies bought by women in 2017-18?

6. In India, an Asset Reconstruction Company is regulated by?

7. Narrow Money is the term in monetary aggregates, which is represented by?

8. In context of banking, what does ‘BBB’ stands for?

9. Which among the following commodity exchange has launched India’s first commodity options in gold?

10. In Notice Money Market, the tenor of the transactions is from _____

Answers and Explanations
1. Answer - Option A
Explanation -
An emerging market economy is highly classified with relatively – one in which the country is becoming a developed nation and is determined through many socio- economic factors.
2. Answer - Option A
Explanation -
Another Rs 1.5 trillion (or Rs 1.5 lakh crore) of non-performing assets are now likely to be with the National Company Law Tribunal in the next six months,” according to a Credit Issue report on RBI’s new rules.
3. Answer - Option D
Explanation -
Gross national product (GNP) is a broad measure of a nation’s total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals.
4. Answer - Option B
Explanation -
Odisha CM Naveen Patnaik announced a Rs10,000 crore scheme for the overall development of farmers. Named Krushak Assistance for Livelihood and Income Augmentation (KALIA), the scheme will provide farmers with Rs10,000 a year at the rate of Rs5,000 each for Kharif and Rabi season. Ganeshi Lal is the Governor of Odisha.
5. Answer - Option D
Explanation -
While women constitute nearly 48% of the country’s population, their contribution to the number of life policies bought in 2017-18 stood at 32% of the 2.82 crores policies sold. According to the IRDAI annual report, of the 90 lakhs policies bought by women in 2017-18, Maharashtra (12%), West Bengal (10.3%) and Uttar Pradesh (9.4%) accounted for a third of these.
6. Answer - Option E
Explanation -
The leading problem in the country right now is alarming volume of Non-Performing Assets with the banking system. Several attempts were made to tackle NPAs. A serious such step was the creation of dedicated institutions called Asset Reconstruction Companies or ARCs that purchases bad assets or NPAs from banks at a negotiable price and helps banks to clean up their balance sheets (by removing the NPAs). RBI has got the power to regulate the ARCs.
7. Answer - Option A
Explanation -
Different measures of money supply. Not all of them are widely used and the exact classifications depend on the country. M0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24 hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.
8. Answer - Option A
Explanation -
Banks Board Bureau is an autonomous body of Union government of India tasked to improve the governance of Public sector banks, recommend selection of chiefs of government owned banks and financial institutions and to help banks in developing strategies and capital raising plans.
9. Answer - Option D
Explanation -
The Multi-Commodity Exchange of India Ltd (MCX) launched India’s first commodity options in gold, giving stakeholders a new set of financial instruments to hedge their price risks. Launched by Union Finance Minister Arun Jaitley in New Delhi on the auspicious day of Dhanteras, the gold options received an encouraging response on Day 1.
10. Answer - Option B
Explanation -
In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

LIC ADO Financial Awareness Quiz - Set 2

1. Depositor Education and Awareness Fund (DEAF) is maintained by which of the following organisation?

2. Commercial Paper (CP) are issued by____________.

3. The type of inflation which does not consider the inflation in food and fuel is known as?

4. Which one among the following is not a part of priority sector lending?

5. Which of the following does not constitute an asset on the Balance sheet of a company?

6. Which Bank has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares?

7. The World Bank has approved Rs.6000 crore to Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation for which scheme?

8. According to SEBI, investors will be permitted to purchase mutual funds worth up to Rs. ______________ through digital wallets.

9. Indian economy grew by what percent in the first quarter (April-June) of the current fiscal, the highest in over two years as per the Finance Ministry?

10. The government of India has doubled the monetary limit to _____________ for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

Answers and Explanations
1. Answer - Option B
Explanation -
Depositor Education and Awareness Fund (DEAF) Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank. All banks are required to transfer money lying in accounts that have been inoperative for at least 10 years to the DEAF according to specific guidelines.
2. Answer - Option E
Explanation -
Commercial Paper (CP) is an unsecured money market instrument introduced in 1990 which are issued in the form of a promissory note. Corporate, Primary Dealers and All India Financial Institutions are eligible to issue CP.
3. Answer - Option B
Explanation -
Core inflation is also a term used to denote the extent of inflation in an economy. But Core inflation does not consider the inflation in food and fuel. This is a concept derived from headline inflation. There is no index for direct measurement of core inflation and now it is measured by excluding food and fuel items from Wholesale Price Index (WPI) or Consumer Price Index (CPI).
4. Answer - Option E
Explanation -
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.. This is essentially meant for an all-round development of the economy as opposed to focusing only on the financial sector. Priority Sector includes the following categories:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

5. Answer - Option C
Explanation -
A balance sheet, also known as a “statement of financial position”, reveals a company’s assets, liabilities and owners equity (net worth). Assets are what a company uses to operate its business. While its liabilities and equity are two sources that support these assets. Cash, accounts receivable, tools and equipment, etc are categorized as assets, while liabilities,capital stock and retained earnings come under Liabilities and Owners Equity
6. Answer - Option E
Explanation -
State-run Punjab National Bank (PNB) has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares. The bank stated it will issue up to 10 crore equity shares to its employees under ‘Employee Stock Purchase Scheme (ESPS)’. A note is being placed to board in its ensuing meeting dated June 15, 2018 regarding ESPS with a proposal for issuance of up to 10 crore equity shares to its employees, the bank said in a regulatory filing.
7. Answer - Option B
Explanation -
The World Bank has approved AtalBhujalYojana (ABHY), a Rs.6000 crore Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation. The scheme is to be implemented over a period of five years from 2018-19 to 2022-23, with World Bank assistance. The scheme proposal has already been recommended by the Expenditure Finance Committee and the Ministry will be seeking Cabinet approval for the project shortly.
8. Answer - Option C
Explanation -
Investors will be permitted to purchase mutual funds worth up to Rs. 50,000 through digital wallets, the market regulator, SEBI stated in a release. “Investments up to Rs. 50,000 per mutual fund per financial year can be made using e-wallets,” the regulator said while redemption of such investments can be made only to the bank account of a unit holder.
9. Answer - Option C
Explanation -
India’s economy grew at an impressive 8.2 per cent in the first quarter of 2018-19 financial year ending June 30 on the back of a strong core performance and a healthy base .
10. Answer - Option A
Explanation -
The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

LIC ADO Financial Awareness Quiz - Set 3

1. Ministry of Housing & Urban Affairs has extended the Credit-Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) Scheme by another 12 months till _____

2. Which state government launched ‘The Krushak Assistance for Livelihood and Income Augmentation (KALIA)’ scheme worth Rs 10,180-crore, for overall development of small, marginal and landless farmers?

3. Union Government has allocated _____ rupees for the development of 40 satellite launch vehicles in the next 4 years, as announced by Dr K Sivan, Chairman of Indian Space Research Organisation (ISRO)

4. Reserve Bank of India has agreed to disburse Sri Lanka’s loan amount of _____ to boost the nation’s reserve

5. GST Council approved doubling of exemption threshold under Goods and Services Tax (GST) regime to Rs 40 lakh along with raising the turnover limit under composition scheme to ______ with effect from April 1, 2019

6. Indian Financial System Code consists of how many alphanumeric digit?

7. ‘Financial Inclusion’ is the powerful tool adopted by the Reserve Bank of India to fulfil the basic objective of

8. In how many languages, the amount of a bank note is written on it?

9. When the prices of commodities, goods and services start declining consistently the phenomena is known as ________

10. Which of the following is not a component of India’s Foreign Exchange Reserves?

Answers and Explanations
1. Answer - Option A
Explanation -
The Ministry of Housing & Urban Affairs headed by Minister of State Hardeep S. Puri, extended the Credit-Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) Scheme by another 12 months till March 31, 2020. The scheme covers two income segments in the MIG viz. Rs 6,00,001 to Rs 12,00,000 per annum for MIG-I and Rs 12,00,001 to Rs 18,00,000 per annum for MIG-II.
2. Answer - Option C
Explanation -
Chief Minister of Odisha, Naveen Patnaik, launched a Rs 10,180-crore scheme, for overall development of small, marginal and landless farmers, dubbed as ‘The Krushak Assistance for Livelihood and Income Augmentation (KALIA)’ scheme in Odisha. This scheme consists of a life insurance of Rs.2 lakh for 57 lakh farmers and would grant them crop loans at zero per cent interest. Also, financial assistance of Rs 10,000 per farmer family per annum to around 30 lakh small and marginal farmers’ families.
3. Answer - Option B
Explanation -
Dr K Sivan, Chairman, Indian Space Research Organisation (ISRO) announced at a ceremony organized by St Joseph’s College, Trichy, Tamil Nadu which is celebrating its 175 anniversary that the Union Government has allocated 10,900 crore rupees for the development of 40 satellite launch vehicles in the next four years. He also informed that the Chandrayan-2 Mission will be launched within three months and It will land in one of those part of the Moon which is still unexplored.
4. Answer - Option B
Explanation -
The Reserve bank of India has agreed to disbursed Sri Lanka’s loan amount of USD 400 million to boost the nation’s reserve. RBI has agreed to issue the fund under the SARRC SWAP facility system. It is also said that another request of currency swap USD 1 billion is under process . RBI’ S assistance is appreciated by the Sri Lanka government and it will help the nation to recover and build itself from the political and constitutional crisis that is prevailing in the nation.
5. Answer - Option A
Explanation -
Finance Minister Arun Jaitley raised the annual turnover for availing composition scheme to Rs 1.5 crore from Rs 1 crore effective from April 1, 2019 to provide relief to small businesses under Goods and Services (GST) regime.
6. Answer - Option B
Explanation -
IFSC is an 11-character codewith the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero) and reserved for future use. Bank IFS Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches. The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India.
7. Answer - Option B
Explanation -
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.
8. Answer - Option B
Explanation -
The Indian Currency has a “Language Panel” with the denomination of the note in 15 different regional languages. Besides these 15 languages, the other 2 languages are “HINDI”, the national language, and “ENGLISH”. So that makes it to 17 languages. The languages are Hindi, English, Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu.
9. Answer - Option A
Explanation -
When the prices of commodities, goods and services start declining consistently the phenomena is known as Deflation. Deflation occurs when the inflation rate falls below 0%.
10. Answer - Option D
Explanation -
The Foreign exchange reserves of India consists of below four categories;

LIC ADO Financial Awareness Quiz - Set 4

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

2. What would a clerk do if he finds that the amount written on a cheque, in words, and in digits is different?

3. RBI is the lender of last resort which means _________.

4. What is the effect of crossing a cheque in India?

5. In Economics, the term Twin Deficit refers to _______

6. Recently, the Reserve Bank of India has allowed a one-time restructuring of existing debt up to __________ for the companies.

7. As per the report from Commerce ministry, Defence Industries received ₹ 1.21 Crore FDI. Foreign Direct Investment beyond _______ percentage has allowed through approval route in defence sector.

8. Recently, the central government has decided to offer ________ interest subsidy to merchant exporters to boosting outbound shipment.

9. The centre has infused more than Rs. 51000 Crore in PSBs till December 2018 out of the budgetary allocation of _________ Crore for 2018-19.

10. ICICI Bank and Small Business FinCredit have joined hand to provide a loan worth up to Rs. 1 Crore for a tenure of ________ years per MSME customers.

Answers:
Answers and Explanations
1. Answer - Option B
Explanation -
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.
2. Answer - Option B
Explanation -
As per section 18 of Negotiable Instrument Act, 1881 where an amount is stated differently in figures and words in the cheque the banker will clear the cheque by taking in account, the amount stated in words to be the amount undertaken or ordered value to be paid to the customer.
3. Answer - Option C
Explanation -
A lender of last resort is an institution, usually a country’s central bank that offers loans to banks or other eligible institutions against eligible securities that are experiencing financial difficulty or are considered highly risky or near collapse.
4. Answer - Option A
Explanation -
When a cheque is crossed, it means that it is an instruction by the client to not pay the cheque directly over the counter but to a banker only for crediting the payees account with the bank.
5. Answer - Option B
Explanation -
Twin Deficit= Current Account Deficit + Fiscal Deficit. In economics, a twin deficit occurs when a nation has both a current account deficit and a fiscal deficit. You can also call twin deficits a double deficit.
1. Answer - Option D
Explanation -
RBI has allowed a one-time restructuring of debt up to Rs. 25 Cr for the companies which have defaulted on payment, but the loans have classified as standard assets. It will help MSMEs which are facing a cash crunch due to demonetization & GST implementation. The restructuring has to be implemented by 31st of March 2020.
7. Answer - Option D
Explanation -
In defence sector, FDI beyond 49% has allowed via approval route. FDI equity inflow of Rs 1.21 Cr has been reported in the sector namely ‘Defence Industries’ during the period 2014- 2018. In 2013-14, 2014-15 and 2015-16, defence industries had received $0.82 million, $0.08 million, and $0.10 million foreign inflows, respectively.
8. Answer - Option E
Explanation -
Government decided to offer 3% interest subsidy to merchant exporters, entailing an expenditure of Rs. 600 Cr to enhance liquidity with a view to boosting outbound shipment. Agriculture, textiles, leather, handicraft & machinery would be benefitted in this scheme.
9. Answer - Option D
Explanation -
Centre has infused more than Rs 51,000 crore in public sector banks till December 2018 out of the budgetary allocation of Rs 65,000 crore for 2018-19. Non-Performing Assets in the banking sector were close to Rs 10 lakh crore at the beginning of FY19.
10. Answer - Option C
Explanation -
ICICI Bank & Small Business FinCredit signed a MoU to provide credit to small & medium enterprises. The loans of up to Rs.1 Cr is for a tenure of 15 years per customer. ICICI Bank will co-originate loan against property with SBFC at a mutually agreed ratio.

LIC ADO Financial Awareness Quiz - Set 5

1. For which of the following debt instruments, not having a fixed rate of interest over the life of the instrument, can ‘Floating Interest Rate’ be applied?

2. Reserves which can act as liquidity buffer for commercial banks during crisis times are ___________

3. Which one of the following is not a salient feature of debit card?

4. Planning for Retirement Saving is a type of ___________

5. What are masala bonds?

6. How much is the new limit decided by RBI for Bulk Deposits inorder to enhance operational freedom of Banks?

7. Under the Short-Term Training (STT) of the PMKVY,25.25 lakh candidates have been trained. PMKVY Stands for?

8. What is the new National Minimum Wage (NMW) per month for a worker, recently revised by an expert committee appointed by Government of India?

9. Government of India, Himachal Pradesh Government and World Bank had signed an agreement worth,how much million for supplying water to the citizens of Greater Shimla?

10. Name the new micro insurance plan that will provide coverage of up to 2 lakhs by the Life Insurance Corporation (LIC) of India?

Answers and Explanations
1. Answer - Option E
Explanation -
An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement. A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
2. Answer - Option D
Explanation -
The RBI has mandated banks to set aside corporation of their deposits as statutory liquidity ratio (SLR) or the minimum amount it must hold in gold, cash or government bonds. In addition banks have to set aside a portion of their deposits as cash with the central bank, a requirement called the cash reserve ratio. These reserves can act as a liquidity buffer for banks during crisis time.
3. Answer - Option D
Explanation -
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.
4. Answer - Option D
Explanation -
Planning for Retirement Saving is a type of Financial Planning.
5. Answer - Option B
Explanation -
Masala bonds are rupee denominated overseas bonds. Masala bonds will help to internationalize the Indian rupee and also deepen the Indian financial system.
6. Answer - Option A
Explanation -
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. This move will enhance operational freedom of Banks. RBI also proposed banks would maintain their bulk deposits interest rate cards in the core banking system for supervisory review. National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) has suggested this proposal. The decision in proposal for setting up an Umbrella Organization (UO) for urban cooperative banks in pending with RBI.
7. Answer - Option C
Explanation -
25.25 lakh candidates,out of the 37.32 lakh (aprrox.), have been trained under the Short-Term Training (STT)of the PradhanMantriKaushalVikasYojna (PMKVY). Similarly, 11.27 lakhunder Recognition of Prior Learning (RPL) and 0.8 lakh under Special Project in various sectors across India.‘Skill Loan Mission’ has been launched by the Government to support youth by providing loan facility to individuals who wish to enrol for the skill development courses, as per the Skill Loan eligibility criteria.
8. Answer - Option B
Explanation -
An expert committee appointed by government suggested Rs. 9,750 per month or Rs. 375 per day as National Minimum Wage (NMW) for a worker. The Present NMW is Rs. 4,576.National minimum wage gas been proposed at various regional level in the range of Rs.8,892 to Rs. 11,622 per month, with supplementary house rent allowance of Rs. 1,430 per month for urban workers.
9. Answer - Option B
Explanation -
A loan agreement of $40 million (4 crore INR) was signed between the Government of India, Himachal Pradesh Government and World Bank, to help bring clean and reliable drinking water to the citizens of Greater Shimla area, who have been facing severe shortages of water and water-borne epidemics in the last few years. Shimla Water Supply and Sewage Service Delivery Reform Programmatic Development Policy Loan is expected to improve Water Supply & Sanitation (WSS) services in and around Shimla.
10. Answer - Option B
Explanation -
A new micro insurance plan ‘Micro Bachat’ was launched by the Life Insurance Corporation (LIC) of India. It provides a coverage of up to 2 lakhs and is the first micro-insurance plan to do so.It provides both protection and savings and is a regular premium, non-linked, participating endowment micro insurance plan.

LIC ADO Financial Awareness Quiz - Set 6

1. Which of the following is not a feature of gilt edged securities?

2. Which risk cannot be eliminated by diversification?

3. Market risk premium in CAPM is defined as

4. What can be a reason for the firm to have a high operating leverage

5. A firm with a high financial leverage is characterized by

6. How much amount of swap facility as offered to banks by RBI to aid liquidity before the end of the financial year?

7. As per UIDAI, business organizations using Aadhar services will now have to pay how much amount for each customer?

8. How much amount of additional loan financing was signed by the World Bank,the Indian government and representatives of 5 states of Government of India for the Dam Rehabilitation and Improvement Project?

9. According to labour Ministry, the income tax exemption limit has been doubled to how much amount?

10. India granted how much loan assistance million to Nepal for the reconstruction of infrastructures in the areas of housing, education, health and cultural heritage?

Answers and Explanations
1. Answer - Option A
Explanation -
These securities are usually referred to as ‘gilt-edged’ securities as repayments of principal as well as interest are totally secured, being the first charge on the nation’s purse. Hence the Central Government securities are considered as safest claims
2. Answer - Option B
Explanation -
Non-diversifiable risk is that part of total risk (which stems from various sources like interest rate risk, inflation risk, financial risk, etc) which is related to the general economy or the stock market as a whole and hence cannot be eliminated through diversification. Non-diversifiable risk is also referred to as market risk or systematic risk.
3. Answer - Option A
Explanation -
The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate
4. Answer - Option B
Explanation -
Operating leverage is a measurement of the degree to which a firm or project incurs a combination of fixed and variable costs.
High operating leverage. A large proportion of the company’s costs are fixed costs. In this case, the firm earns a large profit on each incremental sale, but must attain sufficient sales volume to cover its substantial fixed costs. If it can do so, then the entity will earn a major profit on all sales after it has paid for its fixed costs
5. Answer - Option B
Explanation -
The Financial Leverage ratio equals total assets divided by total equity. The financial leverage ratio is a measure of how much assets a company holds relative to its equity. A high financial leverage ratio means that the company is using debt and other liabilities to finance its assets — and, everything else being equal, is more riskier than a company with lower leverage.
6. Answer - Option C
Explanation -
RBI offered a $5 billion swap facility to banks to aid liquidity before the end of the financial year. The auction will happen on March 26 and the buy/sell swap will run up to March 28, 2022, or for a three-year duration.
7. Answer - Option C
Explanation -
Business organizations using Aadhar services will now have to pay Rs 20 for each customer and 50 paise for authentication of each transaction carried out by the entities, the UIDAI said.
8. Answer - Option B
Explanation -
The World Bank, the Indian government and representatives of 5 states of Government of India and Implementing Agencies signed in New Delhi the Loan Agreement for Additional Financing of $137 million for the Dam Rehabilitation and Improvement Project.
9. Answer - Option C
Explanation -
The labour Ministry said that the income tax exemption limit has been doubled to Rs 20 lakh .from the existing Rs 10 lakh, a move that will benefit employees who are not covered by the Payment of Gratuity Act, 1972.
10. Answer - Option A
Explanation -
India has extended a grant assistance of up to USD 250 million to Nepal for the reconstruction of infrastructures in the areas of housing, education, health and cultural heritage that was destroyed during the devastating April 2015 earthquake which saw the death of over 9,000 people.

LIC ADO Financial Awareness Quiz - Set 7

1. The market price of a share of common stock is determined by ________

2. Which of the following is not a reason why a company may prefer debt financing to equity financing?

3. High operating leverage of the firm indicates

4. With an aim to bring foreign policy to the masses the External Affairs Ministry has come up with an initiative called SAMEEP. SAMEEP stands for _____ .

5. Which of the following is not a function performed by financial system?

6. According to the RBI data, what amount of bad loans banks has recovered in the fiscal ended March 2018?

7. State-owned United Bank of India announced that the government has decided to infuse ___________ in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen banks.

8. As per the Financial Stability Report, gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) has declined from 11.5% in March 2018 to ______ in September 2018.

9. According to the Central Statistics Office (CSO), income earned by an average Indian per year doubled in 7 years. What is the income earned by an average Indian in 2018-19?

10. Central Statistics Office (CSO) stated that the growth in GDP during 2018-19 is estimated at _______.

Answers and Explanations
1. Answer - Option D
Explanation -
The market price of a share of common stock is determined by the market forces ie. Individuals buying and selling the stock.
2. Answer - Option B
Explanation -
Debt, unlike equity finance, will not need to be secured against assets is not a reason why a company may prefer debt financing to equity financing
3. Answer - Option A
Explanation -
High operating leverage of the firm indicates a small change in sales results in a large change in net income
4. Answer - Option C
Explanation -
With an aim to bring foreign policy to the masses the External Affairs Ministry has come up with an initiative called SAMEEP – ‘Students and MEA Engagement Programme’. Under this MEA officials will talk to students to help them better understand foreign policy.
5. Answer - Option E
Explanation -
Saving function: Public saving find their way into the hands of those in production through the financial system. The world’s financial markets provide liquidity (immediately spendable cash) for savers who hold financial instruments but are in need of money. Policy functions enable the regulators to take suitable measures through the market. Risk function where require instruments are provided to hedge against risk
6. Answer - Option A
Explanation -
According to the RBI data, in the fiscal ended March 2018, banks recovered Rs 40,400 crore worth of bad loans as against Rs 38,500 crore recovered in FY17. The various channels through which lenders recovered their bad loans include the Insolvency and Bankruptcy Code (IBC), SARFAESI Act, debt recovery tribunals (DRTs) and Lok Adalats.
7. Answer - Option C
Explanation -
State-owned United Bank of India announced that the government has decided to infuse Rs 2,159 crore in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen banks.
8. Answer - Option C
Explanation -
As per the Financial Stability Report, gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) has declined from 11.5% in March 2018 to 10.8% in September 2018
9. Answer - Option D
Explanation -
The income earned by an average Indian doubled in 7 years, from Rs 63,642 per year in 2011-12 to Rs 1.25 lakh in 2018-19, the first advance estimates of national income released by the Central Statistics Office (CSO) show.
10. Answer - Option C
Explanation -
India Ratings and Research (Ind-Ra), a Fitch Group Company, estimated India’s GDP growth could touch 7.5 % in the financial year 2019-20 as against 7.2 % during current fiscal i.e. 2018-19. India Ratings believes investments are slowly but steadily gaining traction with gross fixed capital formation growing 12.2 % in FY19 and projected to clock 10.3 % in FY20.

LIC ADO Financial Awareness Quiz - Set 8

1. When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as_________

2. In the capital market, the term arbitrage is used with reference to__________

3. The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as-?

4. In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as_________

5. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector, this type of phenomenon is known as

6. In partnership with States, the Ministry of Rural Development has completed how many Rural Homes since April 2014?

7. According to International Monetary Fund’s (IMF) World Economic Outlook Update,India to grow at how much percent in 2019-20?

8. How much amount was approved by the cabinet in EXIM Bank through recapitalization bonds to boost the bank’s capacity in export financing?

9. Which denomination coins were released to mark the 102nd birth anniversary of late Tamil Nadu chief minister and ruling AIADMK founder MG Ramachandran?

10. According to World Economic Survey, which country has emerged as the biggest supporters of international aid?

Answers and Explanations
1. Answer - Option A
Explanation -
Misselling is a significant problem in financial services industry and for financial industry regulators. Brokers, financial advisors, bank representatives or other salespeople of financial products or services who are compensated based on commissions may have significant incentives to sell investments or investment products based on how much they can earn rather than what is suitable or what is needed by a customer. Misselling may occur with insurance products, annuities, investments, mortgages and a variety of other financial products. A financial loss is not necessarily required to meet the definition of misselling; the sale of an unsuitable product is enough.
2. Answer - Option C
Explanation -
Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different form
3. Answer - Option B
Explanation -
The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as is liquidity.
4. Answer - Option A
Explanation -
Insider trading is the trading of a public company’s stock or other securities by individuals with access to non-public information about the company. In various countries, some kinds of trading based on insider information is illegal.
5. Answer - Option B
Explanation -
Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved. Market risk, also called “systematic risk,” cannot be eliminated through diversification, though it can be hedged against.
6. Answer - Option D
Explanation -
In partnership with States, the Ministry of Rural Development has completed 1.37 crore Rural homes since April 2014.
7. Answer - Option A
Explanation -
The International Monetary Fund’s (IMF) World Economic Outlook Update released by chief economist Gita Gopinath recently said that India’s economy is expected to grow by 7.5 percent in the 2019-20 fiscal year, keeping an upward trajectory as the rest of the world slumps.
8. Answer - Option A
Explanation -
The Union Cabinet approved capital infusion of Rs. 6000 crore in EXIM Bank through recapitalisation bonds to boost the bank’s capacity in export financing.
9. Answer - Option B
Explanation -
Two commemorative coins in the denomination of Rs 100 and Rs 5 were released to mark the 102nd birth anniversary of late Tamil Nadu chief minister and ruling AIADMK founder MG Ramachandran which was celebrated across the state.
10. Answer - Option A
Explanation -
Indians have emerged as the biggest supporters of international aid, with a global public opinion survey putting India on the top when it comes to people expecting their nation to help other countries.

LIC ADO Financial Awareness Quiz - Set 9

1. Which of the following is not considered as a means of foreign capital inflow into the country?

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

3. When Indian companies raise funds overseas what is the process known is as?

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

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

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.

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

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?

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

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

Answers and Explanations
1. Answer - Option D
Explanation -
No frills accounts is not considered as a means of foreign capital inflow into the country.
2. Answer - Option D
Explanation -
Interest Rate is not a term associated with the stock markets directly.
3. Answer - Option C
Explanation -
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 - Option D
Explanation -
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 - Option B
Explanation -
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 - Option B
Explanation -
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 - Option C
Explanation -
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 - Option B
Explanation -
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 - Option C
Explanation -
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 - Option C
Explanation -
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.

LIC ADO Financial Awareness Quiz - Set 10

1. If Indian govt. decides the level of Rupee to be 57 from 55 against 1 dollar, it is called ________.

2. When a bank removes bad loans from their balance sheets it is known as _______ loans.

3. ________ (UPI PIN) digit pass code you create/set during first time registration with UPI App.

4. What was the deposits criteria of 14 banks nationalized on 19th July, 1969?

5. Which of the following along with Bombay Stock Exchange has launched the ‘eATM’ facility on 3 December 2018?

6. The Defence Acquisition Council (DAC), chaired by Defence Minister Smt Nirmala Sitharaman accorded approval for procurement for the Services amounting to approximately _______ crores.

7. The Asian Development Bank (ADB) and the Government of lndia signed a $346 million loan to finance improvement of over 400 kilometers of state highways that will enhance connectivity and access to economic centers across 12 districts in ______

8. According to Finance Minister Arun Jaitley, Indian economy grew by ____________ in the first quarter (April-June) of the current fiscal, the highest in over two years.

9. The government of India has doubled the monetary limit to ___________ lakh rupees for filing loan recovery application in the DRT by banks and financial institutions.

10. According to the interim budget 2019, how many Jan Dhan bank accounts were opened in the last five years?

Answers and Explanations
1. Answer - Option B
Explanation -
Depreciation refers to a fall in the value of a currency due to market changes while devaluation signifies the deliberate reduction undertaken by a countries government to its own currency.
2. Answer - Option D
Explanation -
When a bank removes bad loans from its balance sheets it is known as Bank Write-off. By writing off the loans, the bank can reduce its overall tax liability.
3. Answer - Option B
Explanation -
4-6 (UPI PIN)digit pass code you create/set during first time registration with UPI App
4. Answer - Option D
Explanation -
14 major Indian Scheduled Commercial Banks with deposits of over Rs. 50 crores nationalised ‘ to serve better the needs of development of the economy in conformity with national policy objectives’.
5. Answer - Option D
Explanation -
ICICI Securities and Bombay Stock Exchange (BSE) has launched ‘eATM’ facility on 3 December 2018.Through ‘eATM’ facility, clients of the domestic brokerage entity will be able to receive the pay-out within 30 minutes of selling the shares.The new service would have a cap of ₹ 50,000 per client a day and would be applicable on about 600 stocks listed on the BSE.
6. Answer - Option D
Explanation -
The Defence Acquisition Council (DAC), chaired by Defence Minister SmtNirmalaSitharaman accorded approval for procurement for the Services amounting to approximately Rs. 46,000 crores. The DAC in a landmark decision approved procurement of 111 Utility Helicopters for the Indian Navy at a cost of over Rs. 21,000 crores. This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at providing the significant fillip to the Government’s ‘Make in India’ programme.
7. Answer - Option A
Explanation -
The Asian Development Bank (ADB) and the Government of India signed a $346 million loan to finance improvement of over 400 kilometers of state highways that will enhance connectivity and access to economic centers across 12 districts in Karnataka.
8. Answer - Option D
Explanation -
Indian economy grew by 8.2% in the first quarter (April-June) of the current fiscal, the highest in over two years. This announcement was made by Finance Minister, ArunJaitley. The manufacturing sector grew by 13.5% which signals very good turnaround in the sector.
9. Answer - Option A
Explanation -
The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.
10. Answer - Option B
Explanation -
According to the interim budget 2019, in the last five years, nearly 34 crore Jan Dhan bank accounts were opened. It is done to promote digital transactions and financial inclusion in India. Under the scheme, the government has allowed people to open bank accounts with no penalty on zero balance.

LIC ADO Financial Awareness Quiz - Set 11

1. Which of the following statement is/are correct regarding the MCLR?

2. When an unlisted company makes ________, it seeks to sell shares to the general public for the first time.

3. The difference between the total receipts of the government and its total expenditure in a financial year is known as ________.

4. Which of the following are correct regarding the Mutual Funds? I. Custodian of the Mutual Funds should be registered with RBI. II. Mutual Funds cannot invest in debt securities. III. In India, the Mutual Fund Industry started in 1991.

5. IFSC is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. How many digits are present in IFSC code?

6. Which state has announced a hike of Rs 200 per month in the social security pension under ‘Madhu Babu Pension Yojana’, on 19 January 2019?

7. Under the Pradhan Mantri Kisan Samman Nidhi (KISAN) scheme, vulnerable farmers with 2 hectares of land will get direct income support of ₹ ________ per year.

8. Govt. announced that individual taxpayers with annual income up to ₹________ lakh will not have to pay any Income Tax.

9. What is premium of Pradhan Mantri Jeevan Jyoti Bima Yojana?

10. According to the Finance Minister, Piyush Goyal, the fiscal deficit will be at ________ percent of GDP in 2019.

Answers and Explanations
1. Answer - Option E
Explanation -
The marginal cost of funds-based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI.

2. Answer - Option B
Explanation -
Initial Public Offering (IPO) is made by a company for either the fresh issue of securities or sale of existing securities by an unlisted company. IPO is made by an unlisted company for the first time in its duration of existence. It is a method of raising funds by an unlisted company by offering securities to the general public.
3. Answer - Option A
Explanation -
The budget deficit is defined as the difference between the total receipts of the government and its total expenditure in a financial year as mentioned in the annual financial statement of the government. If both are equal, there is said to be no budget deficit for that financial year. Here, earning includes both revenue receipts and borrowing whereas expenditure includes interest payments as well.
4. Answer - Option E
Explanation -
A trust that pools together the savings of many individuals and then invest in capital market instruments are referred to as Mutual Funds. Custodian of the Mutual Funds should be registered with SEBI. Mutual Funds can invest in debt securities and other securities depending on the financial requirements of the investors. In India, mutual Fund industry started in 1963, with the formation of Unit Trust of India as an initiative of the Government of India and the Reserve Bank of India.
5. Answer - Option A
Explanation -
IFSC stands for Indian Financial System Code and is an 11 digit code. The first 4 alpha characters represent the bank, and the last 6 characters representing the branch. The 5th character is 0.
6. Answer - Option C
Explanation -
On 19 January 2019, the Odisha government announced a hike of Rs 200 per month in the social security pension under ‘Madhu Babu Pension Yojana’. About 48 lakh elderly, widows and destitute women will be benefited from the scheme. The pension holders will get a revised pension of Rs 500 per month against Rs 300 while people aged over 80 years will get Rs 700 per month instead of Rs 500.
7. Answer - Option C
Explanation -
Union Interim Finance Minister Piyush Goyal presented the Interim Budget 2019-20 on Feb 1, 2019. Govt. has introduced the Pradhan Mantri Kisan Samman Nidhi (KISAN) scheme to provide assured income to small and marginal farmers. Under the scheme, vulnerable farmers with 2 hectares of land will get direct income support of ₹6000 per year. It is expected to benefit 12 crore farmer families.
8. Answer - Option C
Explanation -
Government announced that individual taxpayers with annual income up to ₹5 lakh will not have to pay any Income Tax. Those with gross income of up to ₹6.5 lakh also won’t have to pay any tax if they make investments in prescribed methods. This will give ₹18,500 cr tax benefit to 3 cr middle class people. He also said that Income Tax returns will be processed in 24 hours and refund initiated.
9. Answer - Option A
Explanation -
Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years of age with bank accounts. The premium of Pradhan Mantri Jeevan Jyoti Bima Yojana is Rs 330.
10. Answer - Option C
Explanation -
Finance Minister Piyush Goyal said the fiscal deficit will be at 3.4 per cent of GDP in 2019 while presenting the interim budget on Feb 1, 2019. He also said that current account deficit is likely to be 2.5 per cent of GDP this year. He added that capital expenditure is pegged at 3.36,292 lakh crore.

LIC ADO Financial Awareness Quiz - Set 12

1. The IFAD is an international financial institution and a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. IFAD stands for

2. What is an Indian depository receipt?

3. When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as

4. The stock market index of London, stock market is referred as

5. The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as-?

6. Fitch Solutions has projected the government’s fiscal deficit to slip to ________% of GDP in 2019-2020 fiscal.

7. In December 2018, RBI limited total outstanding External Commercial Borrowings (ECB) to how much percent of GDP?

8. The GST on affordable housing properties without input tax credit (ITC) has been reduced to how much percent?

9. The Affordable Housing is one where the value of the residential house/flat should be upto Rs. ____ in both metropolitan and non-metropolitan cities

10. The monthly income of the beneficiaries under the Pradhan Mantri Shram Yogi Maandhan (PMSYM) Yojana should not exceed _______

Answers and Explanations
1. Answer - Option D
Explanation -
The International Fund for Agricultural Development (IFAD) is an international financial institution and a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries.
2. Answer - Option C
Explanation -
Indian depository receipt is an instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.
3. Answer - Option A
Explanation -
Misselling is a significant problem in financial services industry and for financial industry regulators. Brokers, financial advisors, bank representatives or other salespeople of financial products or services who are compensated based on commissions may have significant incentives to sell investments or investment products based on how much they can earn rather than what is suitable or what is needed by a customer. Misselling may occur with insurance products, annuities, investments, mortgages and a variety of other financial products. A financial loss is not necessarily required to meet the definition of misselling; the sale of an unsuitable product is enough.
4. Answer - Option B
Explanation -
The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the “Footsie”, is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization.
5. Answer - Option B
Explanation -
The availability or cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as is liquidity.
6. Answer - Option C
Explanation -
Fitch Solutions, an arm of the Fitch group has projected the government’s fiscal deficit to slip to 3.6% of GDP in 2019-2020 fiscal. It said that 2019-20 Budget will show a strong populist bent in the run-up to the General election due by May 2019. The central government is planning to spend a total of Rs 27.8 lakh crore in fiscal 2019-20.
7. Answer - Option D
Explanation -
RBI announced a cap on the outstanding stock of external commercial borrowings at 6.5 percent of GDP at current market prices
8. Answer - Option C
Explanation -
The GST on affordable housing properties without input tax credit (ITC) has been reduced to 1 percent, while effective GST of 5 per cent shall be applicable without ITC on residential properties outside affordable segment, as was decided by the GST Council at its 33rd meeting.
9. Answer - Option C
Explanation -
A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lacs (both for metropolitan and non metropolitan cities).
10. Answer - Option A
Explanation -
The monthly income of the beneficiaries under the Pradhan Mantri Shram Yogi Maandhan (PMSYM) Yojana should not exceed by Rs. 15000. This Scheme shall be open only to the unorganized worker for joining whose monthly income is not exceeding fifteen thousand rupees, who has a savings bank account in his name and, has Aadhar number and Age should be between 18 years to 40 years

LIC ADO Financial Awareness Quiz - Set 13

1. In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as___________-

2. Many a times, we read a term ‘SEPA’ in financial newspapers. What is the full form of the SEPA?

3. _________ is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds

4. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector, this type of phenomenon is known as

5. ETFs are mutual funds listed and traded on stock exchanges like shares. ETFs stands for __________

6. To help boost liquidity particularly among small and marginal farmers in the farming sectors RBI has announced to increase the limit on collateral-free agriculture loans to what amount from Rs.1 lakh?

7. Reserve Bank of India has increased the limit of ‘bulk’ amount to what to enhance operational freedom of Banks?

8. Which payments platform acquired the Noida-based last-minute hotel booking app, Night Stay?

9. Which Indian company has signed a partnership agreement with the French company Be-Bound to offer data connectivity through SMS in areas where there is no Internet connectivity?

10. Which Indian bank recommended Unconditional Cash Transfer to farmers to alleviate the agrarian distress instead of Universal Basic Income (UBI) scheme in its Ecowrap report?

Answers and Explanations
1. Answer - Option A
Explanation -
Insider trading is the trading of a public company’s stock or other securities by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.
2. Answer - Option B
Explanation -
The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.
3. Answer - Option D
Explanation -
A sovereign wealth fund (SWF) or sovereign investment fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally.
4. Answer - Option B
Explanation -
Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved. Market risk, also called “systematic risk,” cannot be eliminated through diversification, though it can be hedged against.
5. Answer - Option E
Explanation -
Exchange Traded Funds (ETFs) are mutual funds listed and traded on stock exchanges like shares.
6. Answer - Option B
Explanation -
To help boost liquidity particularly among small and marginal farmers in the farming sectors RBI has announced to increase the limit on collateral-free agriculture loans to Rs.1.6 lakh from Rs.1 lakh.
7. Answer - Option B
Explanation -
Reserve Bank of India has increased the limit of Rs. 1 crore deposits over Rs. 2 crores as ‘bulk’ as they doubled the limit for the same from the earlier Rs.1 crore. This move will enhance operational freedom of Banks.
8. Answer - Option A
Explanation -
Paytm acquired the Noida-based last-minute hotel booking app, Night Stay.
9. Answer - Option D
Explanation -
BSNL has signed a partnership agreement with the French company Be-Bound to offer data connectivity through SMS in areas where there is no Internet connectivity.
10. Answer - Option D
Explanation -
State Bank of India recommended Unconditional Cash Transfer to farmers to alleviate the agrarian distress instead of Universal Basic Income (UBI) scheme in its Ecowrap report.

LIC ADO Financial Awareness Quiz - Set 14

1. A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________

2. Which of the following is defined as the difference between current assets and current liabilities?

3. Which of the following is an investment strategy in which a fund invests in other types of funds?

4. Money Laundering is_____________

5. Fiscal policy is concerned with which of the following?

6. Under the share swap ratio announced for the proposed merger of Dena, Vijaya with BoB, will enable shareholders of Dena Bank and Vijaya Bank to receive ________ and __________equity shares respectively of BoB for every 1,000 shares they hold.

7. The ‘Krishi Krishak Bandhu’ scheme of the West Bengal government will provide a life insurance cover of how much amount to the families in case of death of a working farmer?

8. ICICI Bank and Small Business FinCredit have collaborated to provide loan facility of up to ________ to MSMEs

9. Which bank has distributed subsidy of more than Rs.1100 crores to more than 51,000 customers under the Government’s flagship scheme PMAY (Prime Minister Housing Scheme)?

10. The Reserve Bank of India has initiated steps to set up wide-based digital Public Credit Registry (PCR) to capture loan information of individuals and corporate borrowers. In this regard, RBI has invited expression of interest from companies having turnover more than ____ in the last three years.

Answers and Explanations
1. Answer - Option C
Explanation -
The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.
2. Answer - Option B
Explanation -
The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
3. Answer - Option D
Explanation -
Funds of Fund is an investment strategy in which a fund invests in other types of funds.
4. Answer - Option A
Explanation -
Money laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity (illegally sources) originated from a legitimate source
5. Answer - Option A
Explanation -
Fiscal policy is the policy relating to government revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is mainly concerned with the flow of money in the economy.
6. Answer - Option A
Explanation -
For every 1,000 equity shares of Vijaya Bank investors will get 402 equity shares of Bank of Baroda. For every 1,000 equity shares of Dena Bank investors will get 110 equity shares of Bank of Baroda
7. Answer - Option A
Explanation -
The state government of West Bengal has announced two initiatives under the ‘Krishi Krishak Bandhu’ scheme to provide financial assistance to the farmers. The first programme will give an annual financial assistance of Rs 5,000 per acre in two installments (Rs 2,500) – one during kharif and another during rabi – for a single crop. Farmers can take the financial assistance at one go too. Under the second programme, life insurance cover of Rs. 2 lakh will be given in case of death (irrespective of the cause) of an earning farmer aged between 18 and 60 years.
8. Answer - Option B
Explanation -
ICICI Bank and Small Business FinCredit will jointly provide loans worth up to Rs. 1 crore to the small and medium enterprises.It is the first-of-its-kind programme by a bank and an NBFC with the loans of up to Rs 1 crore is for a tenure of 15 years per customer.
9. Answer - Option B
Explanation -
HDFC Ltd has distributed subsidy of more than Rs.1100 crores to more than 51,000 customers under the Government’s flagship scheme PMAY (Prime Minister Housing Scheme). HDFC has provided loans of over ₹9,800 crore under PMAY-CLSS(Credit Linked Subsidy Scheme) to customers belonging to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) category.
10. Answer - Option A
Explanation -
RBI has invited expression of interest (EOI) for developing PSC from companies with turnover of over Rs. 100 crore in last three years. Setting up of PCR assumes significance amidst rising bad loans in financial system. The non-performing assets (NPAs) in Indian banking system is too much.

LIC ADO Financial Awareness Quiz - Set 15

1. EFTPOS (electronic funds transfer at point of sale) is based on___________

2. The transaction in which a bank guarantees the payment in case of any damage or financial loss and accepts financial risk & liability is known as _______

3. Which term is used to describe a situation where an Inflation rate is high, the economic growth rates slow down and unemployment remains steadily high?

4. The term CBS network is often associated with Banking Operations. What does the letter ‘C’ stand for in ‘CBS’?

5. Cheque’ and Demand Draft’ come under the purview of which of the following Acts ?

6. Which state government has been given the green nod for its Rs. 13,384.80 crore Sita Rama Lift Irrigation Project?

7. The government has recently allocated an additional Rs. ________ at RE stage to MGNREGA.

8. The government decided to recapitalize state-owned Exim Bank to the tune of Rs________.

9. The CCEA has given its approval to the proposal of the Department of Commerce for including merchant exporters under the Interest Equalization Scheme (IES) for Pre and Post Shipment Rupee Export Credit by allowing them interest equalization rate of _____.

10. RBI has recently flagged that bad loans under PMMY have risen to Rs. _______ crore.

Answers and Explanations
1. Answer - Option E
Explanation -
EFTPOS – electronic funds transfer at point of sale- is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale.
2. Answer - Option B
Explanation -
The transaction in which bank guarantees the payment in case of damage or financial loss and accepts financial risk & liability is known as Underwriting.
3. Answer - Option C
Explanation -
The term stagflation is used in economies to describe a situation where an inflation rate is high,the economics rate slow down and unemployment remains steadily high.
4. Answer - Option D
Explanation -
CBS stands for – Core Banking Solution.
5. Answer - Option D
Explanation -
Cheque and Demand Draft comes under Negotiable Instruments Act, 1881. A Negotiable Instrument means a promissory note, bill of exchange, demand draft or cheque payable either to order or to bearer.
6. Answer - Option B
Explanation -
Telangana government has been given the green nod for its Rs 13,384.80 crore Sita Rama Lift Irrigation Project that aims to divert Godavari river water to irrigate 2.72 lakh hectare in three districts, a senior central government official said. The project, which is expected to be completed in three years, would lead to submergence of about 1,930 hectare area and 157 villages consisting of 9,696 families are likely to be affected, the official added.
7. Answer - Option D
Explanation -
The Government of India has allocated an additional Rs. 6,084 crore at RE stage to MGNREGA. This brings the total allocation to the scheme to Rs. 61,084 crore in 2018-19, making it the highest ever allocation. Governance reforms and thrust on sustainable livelihoods through durable assets has ensured better lives for the poor through wages, incomes and durable assets. MGNREGA is a flagship programme of the Ministry which addresses poverty in a holistic manner by overcoming social inequalities and creating a base for sustainable & long term development.
8. Answer - Option B
Explanation -
The government Wednesday decided to recapitalize state-owned Exim Bank to the tune of Rs. 6,000 crore and double its authorised capital to Rs. 20,000 crore. The equity will be infused in two tranches — Rs. 4,500 crore in 2018-19 and Rs. 1,500 crore in 2019-20.
9. Answer - Option B
Explanation -
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Department of Commerce for including merchant exporters under the Interest Equalization Scheme (IES) for Pre and Post Shipment Rupee Export Credit by allowing them interest equalization rate of 3% on such credit for export of products covered under 416 tariff lines identified under the scheme.
10. Answer - Option C
Explanation -
The Reserve Bank of India (RBI) has raised a red-flag on the spike in non-performing assets (NPAs) under the government’s flagship scheme to support micro enterprises in the country — the Pradhan Mantri Mudra Yojana. According to Finance Ministry sources, RBI has cautioned the ministry that the scheme might turn-out to be the next big source of NPAs, which have plagued the banking system. The central bank has flagged that bad loans under PMMY have risen to Rs. 11,000 crore.

LIC ADO Financial Awareness Quiz - Set 16

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

2. The European Central Bank has launched a new system aimed at letting banks settle payments instantly across Europe. What is the name of that system?

3. The web platform PAiSA has been designed and developed by which of the following banks?

4. ________ is the flow of funds (or capital) from one country to another in order to earn a short-term profit.

5. ____ is a type of charge that gives a bank automatic claim over a borrower’s property or assets.

6. India’s GDP would grow at what percent in 2018-19, as per the first advance estimates of National Income at Constant (2011-12) and Current Prices, for the financial year 2018-2019, released by Central Statistics Office (CSO)?

7. World Bank has projected India’s Gross domestic product (GDP) to grow at what percent in the fiscal year 2018-19, and 7.5% in the following two years?

8. GST Council approved doubling of exemption threshold under Goods and Services Tax (GST) regime to Rs 40 lakh along with raising the turnover limit under composition scheme to ______ with effect from April 1, 2019?

9. Which will be the first Indian state to roll out Universal Basic Income (UBI) and implement the scheme by 2022?

10. Prime Minister Narendra Modi released a commemorative coin of _____ rupees on Guru Govind Singh ji in New Delhi on his 352nd birth anniversary, on 13th January 2019?

Answers and Explanations
1. Answer - Option B
Explanation -
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.
2. Answer - Option B
Explanation -
The European Central Bank launched a new system aimed at letting banks settle payments instantly across Europe, helping them to compete with PayPal and other global tech giants. The ECB’s TARGET Instant Payment Settlement (TIPS) system will let people and companies in Europe transfer euros to each other within seconds.
3. Answer - Option A
Explanation -
The PAiSA – Portal for Affordable Credit and Interest Subvention Access web platform has been designed and developed by Allahabad Bank which is the Nodal bank.
4. Answer - Option C
Explanation -
Hot Money is the flow of funds (or capital) from one country to another in order to earn a short-term profit.
5. Answer - Option D
Explanation -
Lien is a type of charge that gives a bank automatic claim over a borrower’s property or assets.
6. Answer - Option B
Explanation -
The Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation has released the first advance estimates of National Income at Constant (2011-12) and Current Prices, for the financial year 2018-2019. India’s GDP would grow at 7.2% in 2018-19, showing acceleration from 6.7% growth in 2017-18 because of push from agriculture and manufacturing sectors.
7. Answer - Option A
Explanation -
World Bank projected India’s GDP to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years. The Bank said India will continue to be the fastest growing major economy in the world. In India, the growth has accelerated, driven by an upswing in consumption, and investment growth has firmed as the effects of temporary factors wane, the World Bank said in its latest report.
8. Answer - Option A
Explanation -
Finance Minister Arun Jaitley raised the annual turnover for availing composition scheme to Rs. 1.5 crore from Rs. 1 crore effective from April 1, 2019 to provide relief to small businesses under Goods and Services (GST) regime. The Goods and Services (GST) exemption limit has been doubled to Rs. 40 lakh annual turnover and Rs 20 lakh for northeastern states.
9. Answer - Option C
Explanation -
Sikkim,though being a smallest state have set a initiative to introduce UBI in the entire nation.Sikkim’s long lasting chief minister and head of sikkim’s ruling party(Sikkim democratic front) Pawan kumar chamling, quoted that if everything goes right then Sikkim would be the first state to implement Universal Basic Income (UBI) system and execute it by 2022.This scheme is also regarded as an alternative to social welfare programmes with benefits towards reducing poverty.
10. Answer - Option C
Explanation -
The 352nd birth anniversary of the 10th Sikh Guru, Guru Govind Singh ji, was celebrated as Prakashutsav at Patna Sahib, in Bihar, the birth place of Guruji. On January 13, 2019, Prime Minister NarendraModi released a commemorative coin of 350 rupees on Guru Govind Singh ji in New Delhi on the eve of 352nd birth anniversary of the 10th Sikh Guru.

LIC ADO Financial Awareness Quiz - Set 17

1. Pradhan Mantri Vaya Vandana Yojana (PMVVY)’ aims to provide social security during old age. What is the minimum purchase price under the scheme for a minimum pension of Rs. 1,000/- per month ?

2. Beta measures what type of risk?

3. An option that may only be exercised on expiration is known as ?

4. In which of the following types of cheques, the person whose name is written by the issuer, is the only person authorized to collect the amount?

5. In the financial sector there are many companies who are providing banking like activities though they are not recognized as banks. How is this particular type of activity known as?

6. “Shishu” scheme under ‘Pradhan Mantri Mudra Yojana’ covers loan upto which limit?

7. What is Marginal Standing Facility (MSF) rate and Statutory Liquidity Ratio (SLR) as per ‘First Bi-Monthly Monetary Policy’ released recently?

8. In September 2018, the New Development Bank of the BRICS countries has approved a $525-million loan to _____ for infrastructure projects.

9. In September 2018, the government has doubled the monetary limit to __________ for filing loan recovery application in the Debt Recovery Tribunals.

10. The GST council has decided to offer cash back to consumers. What is the maximum limit of cashback on payments via Rupay cards, BHIM and UPI system once the offer is implemented?

Answers and Explanations
1. Answer - Option D
Explanation -
Pradhan Mantri Vaya Vandana Yojana (PMVVY)’ aims to provide social security during old age and to protect elderly persons aged 60 and above. Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month
2. Answer - Option C
Explanation -
Beta of an investment indicates whether the investment is more or less volatile than the market as a whole. In general, a beta less than 1 indicates that the investment is less volatile than the market, while a beta more than 1 indicates that the investment is more volatile than the market.
3. Answer - Option B
Explanation -
European option – an option that may only be exercised on expiration.American option – an option that may be exercised on any trading day on or before expiry. Call Option – gives the buyer of option the right ( not obligation) to buy a currency or share. Put Option – gives the buyer of option the right (not obligation) to sell a currency or share.
4. Answer - Option E
Explanation -
Order cheque is issued to only that person whose name is written on the cheque by the issuer. Identification is required at the time of presenting the cheque to the bank.
5. Answer - Option C
Explanation -
The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but outside normal banking regulations. The phrase “shadow banking” contains the pejorative connotation of back alley loan sharks.
6. Answer - Option B
Explanation -
Under Pradhan Mantri Mudra Yojana, 3 types of schemes- Shishu, Kishor, Tarun has been launched. Shishu scheme covers loan uptoRs. 50,000
7. Answer - Option B
Explanation -
In February 2019, Reserve Bank of India (RBI)’s six-member monetary policy committee chaired by RBI Governor Shaktikanta Das released its First Bi-Monthly Monetary Policy. RBI had reduced 0.25 basis points in the Policy Rates with immediate effect. The Change in Policy rates are as follows: Repo Rate: 6.00% , Reverse Repo Rate: 5.75%, Marginal Standing Facility Rate: 6.25%, Bank Rate: 6.25%, Cash Reserve Ratio (CRR): 4%, Statutory Liquidity Ratio (SLR): 19.25%.
8. Answer - Option A
Explanation -
The New Development Bank of the BRICS countries has approved a $525-million loan to Madhya Pradesh for infrastructure projects.
The loan would be used by the Indian government for on-lending to the Madhya Pradesh government for rehabilitating major district roads with a total length of about 2,000 km to improve the connectivity of the rural interior with the national and state highway networks.
9. Answer - Option E
Explanation -
The government doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals by banks and financial institutions.It is aimed at helping reduce pendency of cases in DRTs. There are 39 DRTs in the country.The government has made several amendments in different laws, including the SARFAESI Act to make the tribunals more effective and to facilitate fast disposal of debt recovery cases.
10. Answer - Option C
Explanation -
Once the offer is implemented, the customers making payments through Rupay card and BHIM UPI would get a cashback of 20% of the total GST amount, subject to a maximum limit of Rs 100.The Goods and Services Tax (GST) Council decided to offer cash back to consumers on a trial basis for every digital payment made via Rupay cards, BHIM application and UPI system to promote cashless transactions in rural semi-urban areas.

LIC ADO Financial Awareness Quiz - Set 18

1. Which among the following is a condition of slow economic growth and relatively high unemployment?

2. Under Atal Bimit Vyakti Kalyan Yojana, the unemployed persons who searching for new employment can get 25% of his/her average earning of _________ days as a cash benefit.

3. As per the Payment of Gratuity Act, 1972 an employee is eligible to get gratuity only after he/she has worked with an organization for at least ________ years.

4. What is the projected growth rate of India for the financial year 2019-20 by the International Monetary Fund (IMF)?

5. Which of the following is also known as “Reserve Money”?

6. In September 2018, the government has announced that all formal sector workers earning a monthly salary below __________ have to link their Provident Fund accounts with Aadhar numbers.

7. The workers of the unorganized sector would get an assured monthly pension of Rs 3,000 under the Pradhan Mantri Shram-Yogi Maandhan scheme, after they attain the age of ____ .

8. Reserve Bank of India has announced to ope-rationalize ‘Net stable funding ratio (NSFR)’ norms for banks from which date?

9. Union government has recently signed $85 million loan agreement with which financial agency to promote skill development in Odisha?

10. Which state launched the Rs 50,000-crore farm debt-waiver scheme named ‘Jai Kisan Rin Mukti Yojana’ on 15 January 2019

Answers and Explanations
1. Answer - Option C
Explanation -
Stagflation is a condition in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.
It can also be defined as inflation and a decline in gross domestic product. It occurs when an economy faces a sudden increase or decrease in the supply of a commodity or service. Reflation – It is a monetary or fiscal policy by the government and central bank respectively to boost demand and thus increase the level of economic activity and combat deflation. Creeping Inflation – A circumstance where the inflation of a nation increases gradually, but continually over time is called Creeping Inflation.
2. Answer - Option E
Explanation -
The ESI Corporation has approved ‘AtalBimitVyaktiKalyanYojana’ for Insured Persons (IP) covered under the Employees’ State Insurance Act, 1948. This scheme is a relief payable in cash directly to the Bank Account in case of unemployment and while they search for new engagement. Under AtalBimitVyaktiKalyanYojana, the cash benefit given to the unemployed persons searching for new employment would be 25% of his average earning of 90 days.
3. Answer - Option A
Explanation -
The Payment of Gratuity Act, 1972, states that an employee is eligible to get gratuity only after he/she has worked with an organization for at least five years. The employee stands to receive the gratuity amount on his/her superannuation, or at the time of retirement or resignation. The rules state that when an employee is eligible to get a gratuity, the individual needs to apply within a matter of 30 days from the date it becomes payable.
4. Answer - Option B
Explanation -
The International Monetary Fund forecasted the growth rate of India for 2019-20 is 7.5%. IMF said that India’s growth rate likely to accelerate to 7.7% in 2020-21. Central Statistics Office’s (CSO) estimated the growth rate of 7.2% for 2018-19 and the RBI estimates the growth rate of 7.4%.
5. Answer - Option B
Explanation -
Reserve money (M0) = Currency in Circulation + Bankers’ Deposits with RBI + ‘Other’ Deposits with RBI. It is also called as high powered money, base money and central bank money. All these names suggest that reserve money represents the base level for money supply or it is the high-powered component of money supply.
6. Answer - Option A
Explanation -
All formal sector workers earning a monthly salary below Rs. 15000 should link their provident fund (PF) accounts with their Aadhaar numbers. PF accounts are managed by the Employees’ Provident Fund Organisation (EPFO). At present, the minimum pension under EPS (Employees’ Pension Scheme) is Rs. 1000 per month and an employee can receive a pension only after a minimum of 10 years of service.
7. Answer - Option B
Explanation -
As per Interim Budget, 2019-20, the workers of the unorganized sector would get an assured monthly pension of Rs. 3,000 under the PradhanMantriShram-Yogi Maandhan scheme, after they attain the age of 60 years.
8. Answer - Option C
Explanation -
RBI announced the date of its implementation of the Net Stable Funding Ration (NSFR) norms to be from April 1, 2020
9. Answer - Option C
Explanation -
In December, 2018, the Government of India and the Asian Development Bank (ADB) signed a $85 million loan in New Delhi, under the Odisha Skill Development Project to promote skill development in Odisha. Under this project, the World Skill Center (WSC), an advanced skill training centre would be established in Bhubaneswar, Odisha.
10. Answer - Option A
Explanation -
Madhya Pradesh’s Chief Minister Kamal Nath launched the Rs 50,000-crore farm debt-waiver scheme named ‘Jai KisanRinMuktiYojana’ on 15 January 2019. The state cabinet gave its nod to waive crop loans of 55 lakh small and marginal farmers on 5 January 2019. The loan waiver forms could be submitted till 5 February 2019 and farmers would start getting the benefits from 22 February 2019.

LIC ADO Financial Awareness Quiz - Set 19

1. PradhanMantriVayaVandanaYojana (PMVVY) is a pension plan for senior citizens managed and operated by Life Insurance Corporation (LIC). Under this scheme pension will be paid for how many years?

2. Which of the following is an internationally recognized identification code for banks around the world, commonly used for international wire transfers?

3. Which of the following exchange/s comes under the Indian Secondary Market?

4. What does the term ‘Financial Exclusion’ refers to, in banking system?

5. The stock exchanges are defined under which of the following acts?

6. Which of the following bank has decided to link interest rates on the savings bank account to an external benchmark from [latex]{1}^{st}[/latex] May 2019?

7. How many rupees will be transferred by the Reserve Bank of India (RBI) as an interim surplus to the central government for the half-year (till [latex]{31}^{st}[/latex] December 2018)?

8. The “PradhanMantriKisanSammanNidhi (PM-KISAN)” will cost the government ________ per year.

9. As per the Interim Budget, what was India’s Debt to GDP ratio in the year 2017-18?

10. How much amount has been allocated for ‘PradhanMantriShram-Yogi Maandhan’ in the Interim Budget 2019-20?

Answers and Explanations
1. Answer - Option B
Explanation -
PradhanMantriVayaVandanaYojana (PMVVY) was launched by the Government of India in 2017. PMVVY is a pension scheme for senior citizens aged 60 years and above. Life Insurance Corporation (LIC) of India has been authorized by the government of India to implement the PMVVY. It provides an assured return of 8% p.a. payable monthly for 10 years.
2. Answer - Option D
Explanation -
Swift- Society for Worldwide Interbank Financial Telecommunication code.An internationally recognized identification code for banks around the world. SWIFT codes are most commonly used for international wire transfers and are comprised of 8 or 11 alphanumeric characters.
3. Answer - Option E
Explanation -
The Indian secondary market now has a four-tier form as follows:
Regional stock exchanges
The National Stock Exchanges (BSE and NSE)
The Over the Counter Exchange of India (OTCEI)
The Inter-Connected Stock Exchange of India (ISE)
4. Answer - Option B
Explanation -
Financial exclusion can be defined as the unavailability of banking services to people with low or non-income. It is believed to be one factor preventing poor people leave out poverty.
5. Answer - Option C
Explanation -
Stock Exchange are defined under Securities Contract (Regulation) Act, 1956 [SCRA] They are defined as anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception.
6. Answer - Option D
Explanation -
State Bank of India (SBI) has decided to link interest rates on the savings bank account to an external benchmark from 1st May 2019. With this SBI becomes the first Indian bank to link both deposit rate and lending rate to an external benchmark.
7. Answer - Option A
Explanation -
The Reserve Bank of India (RBI) will transfer an interim surplus of 28,000 crore rupees to the central government for the half-year (ended 31st December 2018).The decision has been based on a limited audit review and after applying the extent economic capital framework.
8. Answer - Option E
Explanation -
To provide an assured income support to the small and marginal farmers, Government is launching a programme namely “PradhanMantriKisanSammanNidhi (PM-KISAN)”. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs. 2,000 each. This programme will be funded by Government of India. Around 12 crore small and marginal farmer families are expected to benefit from this. The programme would be made effective from 1st December 2018 and the first instalment for the period up to 31st March 2019. This programme will entail an annual expenditure of Rs. 75,000 crore.
9. Answer - Option A
Explanation -
India’s Debt to GDP ratio was 46.5% in year 2017-18. The FRBM Act prescribes that the Debt to GDP ratio of the Govt of India should be brought down to 40% by 2024-25.
10. Answer - Option C
Explanation -
The Government has proposed to launch a mega pension yojana ‘PradhanMantriShram-Yogi Maandhan’ for the unorganised sector workers with monthly income uptoRs. 15,000. This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age. A sum of Rs. 500 crore has been allocated for the Scheme.

LIC ADO Financial Awareness Quiz - Set 20

1. An organization such as a bank or insurance company that buys and sells large quantities of securities is called __________

2. A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is called _______.

3. Which one of the following is the regulator of Capital Market in India?

4. Currency swap is an instrument to manage ______

5. What is the minimum capital requirement for new on tap license to set up Private Banks?

6. Up to what amount of existing debt the Reserve Bank has allowed a one-time restructuring for the companies which have defaulted on payment, but the loans given to them have continued to be classified as standard assets?

7. IRCTC, the Railways’ subsidiary, will offer insurance of up to INR ______ for free for air passengers who book their tickets through its portal.

8. Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide ________ under a swap arrangement to boost the island nation’s reserves.

9. The 32nd Meeting of GST Council was concluded in New Delhi. The Council has decided to increase the GST registration threshold limit to _______ from 20 lakh rupees.

10. The government has announced __________ rupee award for states that would complete the household electrification early under the Saubhagaya scheme.

Answers and Explanations
1. Answer - Option C
Explanation -
Institutional investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, investment advisors, endowments, and mutual funds.
2. Answer - Option A
Explanation -
A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is known as Indian Depository Receipt (IDR).
3. Answer - Option B
Explanation -
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1988. SEBI is the regulator of Capital Market in India.
4. Answer - Option D
Explanation -
A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.
5. Answer - Option C
Explanation -
As per RBI guidelines, minimum capital requirement for New on tap license to set up Private Banks is Rs. 500 crore. Validity of the in-principle approval issued by the RBI will be 18 months from the date of granting in-principle approval.
6. Answer - Option B
Explanation -
Reserve Bank allowed a one-time restructuring of existing debt up to Rs. 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.
7. Answer - Option C
Explanation -
Indian Railway Catering and Tourism Corporation (IRCTC), the Railways’ subsidiary, will offer insurance of up to INR50 lakh for free for air passengers who book their tickets through its portal. IRCTC has tied up with Bharti-Axa for the offer.
8. Answer - Option A
Explanation -
Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide USD 400 million under a swap arrangement to boost the island nation’s reserves.
9. Answer - Option A
Explanation -
The 32nd Meeting of GST Council was concluded in New Delhi. The Limit of annual turnover for composition scheme increased to 1.5 crore rupees effective from April 1, 2019. The Council has decided to increase the GST registration threshold limit to 40 lakh rupees from 20 lakh.
10. Answer - Option E
Explanation -
The government has announced 100 crore rupee award for states that would complete the household electrification early under the Saubhagaya scheme. Apart from discoms, employees would also collectively get 50 lakh rupees award for completing the task of electrifying households under the scheme.

LIC ADO Financial Awareness Quiz - Set 21

1. ASBA scheme is related to the purchase of ____.

2. A rise in Sensex means ___________.

3. The Cash Reserve Ratio (CRR) which is to be maintained with the Reserve Bank of India is maintained in which of the following ways?

4. In the capital Market, the term arbitrage is used with reference to ______________

5. In which of the following accounts is operation by cheques permitted?

6. What is the new National Minimum Wage (NMW) per month for a worker,recently revised by an expert committee appointed by Government of India?

7. Which of the following scheme is launched as a pension scheme by Finance Minister during Union budget 2019-20 for the benefit of workers in Unorganized Sector?

8. Government of India, Himachal Pradesh Government and World Bank had signed an agreement worth,how much million for supplying water to the citizens of Greater Shimla?

9. What is the new interest rate on Employees’ Provident Fund for 2018-19 recommended by Employees’ Provident Fund Organisation (EPFO) ?

10. How much is the new limit decided by RBI for Bulk Deposits inorder to enhance operational freedom of Banks?

Answers and Explanations
1. Answer - Option A
Explanation -
ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.
2. Answer - Option C
Explanation -
Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. A rise in Sensex means overall rise in prices of top 30 shares of group of companies registered with BSE.
3. Answer - Option A
Explanation -
Every commercial bank has to keep certain minimum cash reserves with RBI. This is known as the Cash Reserve Ratio (CRR). Apart from the CRR, banks are required to maintain liquid assets such as precious metals (gold) or other approved securities, other than the cash. This is known as the Statutory Liquidity ration (SLR).
4. Answer - Option C
Explanation -
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.
5. Answer - Option E
Explanation -
Both savings bank accounts and current accounts are allowed to operate by cheques.
6. Answer - Option B
Explanation -
An expert committee appointed by government suggested Rs. 9,750 per month or Rs. 375 per day as National Minimum Wage (NMW) for a worker. The Present NMW is Rs. 4,576.National minimum wage gas been proposed at various regional level in the range of Rs.8,892 to Rs. 11,622 per month, with supplementary house rent allowance of Rs. 1,430 per month for urban workers.The recommendations could form the basis for a national minimum wage covering all workers irrespective of skills, sectors, occupations and rural-urban areas.According to Committee’s formula, a family with 3.2 units of consumption requires food of Rs.2400, minimum 50 gm of protein and 30 gm of fat every day.The Labour ministry has proposed a statutory minimal wage which will be calculated by NMW calculator to address varying economic conditions at state and regional levels through a Code on Wages Bill.
7. Answer - Option C
Explanation -
On 15th February 2019, Finance minister has implemented the PradhanMantriShram Yogi MandhanYojana which is primarily a pension scheme for the labours, associated in the unorganized sector. It was announced in Budget 2019. Under this scheme, workers of unorganized sectors whose monthly income is less than Rs. 15,000 may avail the Rs. 3000 per month after 60 year of age The scheme will facilitate the benefits up to 10 crore workers which include lower class workers, labor, plumber, mechanic, sweeper, construction workers, etc. An amount of Rs. 500 crore has been allocated for the scheme. The benefits of the scheme will be availed within 5 years.
8. Answer - Option B
Explanation -
A loan agreement of $40 million (4 crore INR) was signed between the Government of India, Himachal Pradesh Government and World Bank, to help bring clean and reliable drinking water to the citizens of Greater Shimla area, who have been facing severe shortages of water and water-borne epidemics in the last few years.Shimla Water Supply and Sewage Service Delivery Reform Programmatic Development Policy Loan is expected to improve Water Supply & Sanitation (WSS) services in and around Shimla.Loan agreement was signed by Mr. Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Mr.Junaid Kamal Ahmad, Country Director, World Bank India, on behalf of the World Bank.
9. Answer - Option A
Explanation -
Employees’ Provident Fund Organisation (EPFO) has recommended to increase the interest rate on Employees’ Provident Fund for 2018-19 to 8.65% from 8.55% benefitting 6 crore EPFO subscribers.All members of the Central Board of Trustees (CBT),EPFO of have agreed to the increase the interest rate and the proposal would now go to the Finance Ministry for approval.The EPFO provided a five-year-low rate of interest of 8.55% for FY18. The interest rate was 8.65% in FY17, 8.8% in FY16 and 8.75% interest in FY14 and FY15. The rate of interest was 8.5% in FY13.
10. Answer - Option A
Explanation -
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. This move will enhance operational freedom of Banks. RBI also proposed banks would maintain their bulk deposits interest rate cards in the core banking system for supervisory review. National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) has suggested this proposal. The decision in proposal for setting up an Umbrella Organization (UO) for urban cooperative banks in pending with RBI.

LIC ADO Financial Awareness Quiz - Set 22

1. What do you understand by, ‘Asset Reconstruction Companies look for business from banks’?

2. In the Union Budget, what does the term ‘primary deficit’ mean?

3. Maximum Loan amount under MUDRA Bank’s Shishu Scheme is?

4. Under which of the following sections of the Banking Regulation Act,1949 does RBI issue guidelines on the maintenance of Statutory Liquidity Ratio (SLR)?

5. Narrow Money, a term in monetary aggregates, is denoted by ____.

6. As per the National Sample Survey Office’s report, What is the unemployment rate for the year 2017-18?

7. How much will be allotted under the PradhanmantriKisanSammanNidhiYojna as per the union Budget 2019?

8. Which Country is to lend a loan of $1 billion to Beijing to fund a major highway project?

9. Saudi Crown Prince, Mohammed bin Salman increased the quota for Indian Haj pilgrims from 1.75 lakh to _______ lakh after PM NarendraModi’s request?

10. Which of the following banks are removed from the PCA (Prompt Corrective Action) framework recently?

Answers and Explanations
1. Answer - Option A
Explanation -
Asset Reconstruction Companies (ARC), purchases the bad loans or non-performing assets (NPA) issued by commercial and other banks at discounted rates.
2. Answer - Option B
Explanation -
Primary deficit: It is the fiscal deficit less interest payments made by the government on its earlier borrowings.
3. Answer - Option B
Explanation -
Under MUDRA Bank’s Shishu Scheme, maximum loan amount that can be granted is Rs. 50000. The maximum loan amount is Rs. 5 lakh under Kishor Scheme and Rs. 10 lakh under Tarun Scheme.
4. Answer - Option E
Explanation -
RBI regularly issues guidelines on maintenance of Statutory Liquidity Ratio (SLR) under Section 24 and Section 56 of the Banking Regulation Act, 1949 to all banks in India
5. Answer - Option E
Explanation -
0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash.
M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds.
M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice
6. Answer - Option D
Explanation -
As per the National Sample Survey Office’s (NSSO’s) periodic labor force survey (PLFS) India’s unemployment rate hit a 45 year high of 6.1% in 2017-18. It is the first comprehensive survey on employment conducted by a government agency after demonetization. Unemployment is higher in urban areas which is 7.8% as compared to 5.3% in rural areas of the country. The unemployment rate is at its highest level as in 1972-73. The rate of jobless rural males rose to 17.4% from 5% and among rural jobless females, the rate became 13.6% from 4.8%.
7. Answer - Option B
Explanation -
The Union Minister PiyushGoyal announced various schemes in the Interim Union Budget 2019-20 on February 1, 2019. Government announced fixed yearly income for small and marginal farmers under PradhanmantriKisanSammanNidhiYojna. This scheme will benefit about 12 crore farmers who have 2 Hectare land. Rupee 6000 per year direct cash transfer in their account. Cash transfer will be given in three equal installments of Rs 2000 each. The benefit under this yojna will be given retrospectively from December 2018. Rs. 75000 crore allotted for this scheme. It is expected to double the farmers income.
8. Answer - Option D
Explanation -
China is to sign a $1 billion concessional loan agreement with Beijing. The agreement is to fund a major highway project linking Colombo to Kandy. The construction of the first phase of the road has been delayed for more than two years due to a lack of funding. Last year Sri Lanka has handed over a strategic port to a Chinese firm for a 99-year lease.
9. Answer - Option D
Explanation -
Saudi Crown Prince, Mohammed bin Salman also announced the increase in quota for Indian Haj pilgrims from 1.75 lakh to 2 lakh at the request of PM Modi. 2,340 Muslim women will go to Hajj this year, without mehram (companion) and without the lottery system. This will be the third such increase in the last 5 years
10. Answer - Option A
Explanation -
On 26th February 2019, the Board for Financial Supervision (BFS) of the Reserve Bank of India has removed 2 public sector banks- Corporation Bank and Allahabad Bank and 1 private sector bank – Dhanlaxmi Bank from PCA (Prompt Corrective Action) framework. According to BFS, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore respectively which led to increase in their capital funds and also increased their loan loss provision. According to RBI, Dhanlaxmi bank was found to be not breaching any of the risk threshold of the PCA Framework, hence was removed out of the PCA Framework.

LIC ADO Financial Awareness Quiz - Set 23

1. A ‘Legal Entity Identifier’ is a _____ character identifier that identifies distinct legal entities that engage in financial transactions.

2. Under ‘Non-Performing Assets (NPA) recognition process’, an asset would be classified as ___________ if it has remained in the substandard category for a period of 12 months.

3. The payments bank should have a leverage ratio of not less than ___________.

4. ______ is not included under ‘Weaker Sections category’ eligible for ‘Priority sector loans’ given by the banks.

5. A crossed cheque is any cheque that is generally crossed with ______ parallel line(s).

6. Total gross GST revenue collected in the month of February 2019 is ₹ ________ crores.

7. The Asian Development Bank (ADB) and the Government of India signed a $_____ Million Loan Agreement today to operationalize two lines for the Mumbai Metro Rail System.

8. As per Moody’s report, Indian economy is expected to grow at ____________ in calendar year 2019 and 2020

9. SEBI has lifted the restriction on limit of investments by FPIs in corporate bonds of an entity. Earlier this limit was capped at __________ percent

10. How many banks in India has been classified as Domestic Systemically Important Banks (D-SIBs) by RBI?

Answers and Explanations
1. Answer - Option A
Explanation -
The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.LEI is a 20-digit unique code to identify parties to financial transactions worldwide.
2. Answer - Option C
Explanation -
A restructured account is one where the bank, grants to the borrower concessions that the bank would not otherwise consider. It is a mechanism to nurture an otherwise viable unit, which has been adversely impacted, back to health.A substandard asset would be one, which has remained NPA for a period less than or equal to 12 months.An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
3. Answer - Option B
Explanation -
A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations.The minimum paid-up equity capital for payments banks shall be Rs. 100 crore.The payments bank should have a leverage ratio of not less than 3 per cent, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
4. Answer - Option E
Explanation -
Other Backward Classes is not included under ‘Weaker Sections category’ eligible for ‘Priority sector loans’ given by the banks.
5. Answer - Option E
Explanation -
A crossed cheque is any cheque that is crossed with two parallel lines, either across the whole cheque or through the top left-hand corner of the cheque.This symbol means that the cheque can only be deposited directly into a bank account and cannot be immediately cashed by a bank or any other credit institution.If a cheque is crossed, there is no way for the payee to uncross the cheque.
6. Answer - Option D
Explanation -
Total gross GST revenue collected in the month of February 2019 is ₹ 97,247 crore of which CGST is ₹ 17,626 crore, SGST is ₹ 24,192 crore, IGST is ₹ 46,953 crore& cess is ₹ 8,476 crore. Revenue in February 2018 was ₹ 85,962 crore.
7. Answer - Option C
Explanation -
The Asian Development Bank (ADB) and the Government of India signed a $926 Million Loan Agreement today to operationalize two lines for the Mumbai Metro Rail System. The Project also marks ADB’s first co-financing with NDB, which will provide $260 million. ADB President-TakehikoNakao Headquarters- Mandaluyong, Philippines.
8. Answer - Option D
Explanation -
As per Moody’s report, Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020. In 2018-19 fiscal Indian economy is estimated to have grown 7%, lower than 7.2% in 2017-18
9. Answer - Option A
Explanation -
Securities and Exchange Board of India (SEBI) has lifted the restriction on FPI which stated that no FPI shall have an exposure of more than 20% of its corporate bond portfolio to a single corporate.
10. Answer - Option D
Explanation -
The Reserve Bank of India has released the list of Domestic Systemically Important Banks (D-SIBs). State Bank of India is in Bucket 3, while HDFC and ICICI Bank both are in Bucket 1. Rest all buckets are empty. These three banks are in the D-SIBs list since Sep 04, 2017. No new bank has been added after the revised list is released on March 14, 2019.

LIC ADO Financial Awareness Quiz - Set 24

1. In National Financial Switch service, the limit per transaction is restricted to less than _________.

2. What is the dimension of the new 50 rupee note?

3. Which among the following is authorized by RBI to store rupee notes and coins?

4. If the credit balance in a savings account has not been operated for ten years, the amount should be transferred to which fund?

5. To use the services of which of the following, you do not need to have your KYC done with the services?

6. Which organization has launched its $1 billion masala bond programme in the US and Europe recently?

7. The World Bank has approved Rs.6000 crore to Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation for which scheme?

8. According to SEBI, investors will be permitted to purchase mutual funds worth up to Rs ______________ through digital wallets.

9. The Union Government, Rajasthan and the World Bank signed a _____ million Development Policy Loan (DPL) to support Rajasthan in improving the performance of its Electricity Distribution Sector under the State’s ‘24×7 Power for All’ program.

10. The government of India has doubled the monetary limit to ___ rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

Answers and Explanations
1. Answer - Option C
Explanation -
In National Financial Switch service, the limit per transaction is restricted to less than ₹ 50000. National Financial Switch (NFS) is the largest interconnected network of automated teller machines (ATMs) in India. It was taken over by NPCI from Institute for Development and Research in Banking Technology (IDRBT) in 2009.
2. Answer - Option E
Explanation -
The dimension of the new 50-rupee note is 66 mm * 135 mm. The colour of the note is Fluorescent blue and motif is Hampi with Chariot. Rupee Note Dimension 10-rupee note 63 mm * 123 mm 100-rupee note 66 mm * 142 mm 500-rupee note 66 mm * 150 mm 200-rupee note 66 mm * 146 mm
3. Answer - Option C
Explanation -
Currency chests are branches of selected banks authorized by the RBI to stock rupee notes and coins. The main function of currency chests is to facilitate note supply. The cash reserve ratios of the commercial banks are also kept at currency chests. Currency chests are usually located at authorized select branches of the scheduled bank.
4. Answer - Option E
Explanation -
As per the Reserve Bank of India, the bank deposit which has not been claimed for 10 years or more would be transferred to Depositor Education and Awareness Fund Scheme. Reserve Bank of India established a Fund under the Section 26A of the Banking Regulation Act, 1949.The amounts to be credited to the Fund by banks shall be deposited in the specified account maintained with the RBI.
5. Answer - Option E
Explanation -
Know Your Customer commonly known as KYC, enables a bank/financial institution to validate the identity of its servicing customers. In order to open a bank account, one needs to submit Aadhaar/enrolment number and PAN as ‘proof of identity and proof of address’ For using the e-wallet services like Amazon Pay & Mobikwik, one needs to have their KYC done by providing any one of the identity proof as applicable
6. Answer - Option C
Explanation -
IFC or International Finance Corporation, the World Bank’s lending arm, has launched its $1 billion masala bond programme in the US and Europe. These bonds are aimed at funding the rapidly expanding investment activities of IFC in India.
7. Answer - Option B
Explanation -
The World Bank has approved Atal Bhujal Yojana (ABHY), a Rs.6000 crore Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation. The scheme is to be implemented over a period of five years from 2018-19 to 2022-23, with World Bank assistance. The scheme proposal has already been recommended by the Expenditure Finance Committee and the Ministry will be seeking Cabinet approval for the project shortly.
8. Answer - Option C
Explanation -
Investors will be permitted to purchase mutual funds worth up to Rs 50,000 through digital wallets, the market regulator, Sebi said in a release. “Investments up to Rs 50,000 per mutual fund per financial year can be made using e-wallets,” the regulator said while redemptions of such investments can be made only to the bank account of a unit holder.
9. Answer - Option D
Explanation -
The Union Government, Rajasthan and the World Bank signed a USD 250 million Development Policy Loan (DPL) to support Rajasthan in improving the performance of its Electricity Distribution Sector under the State’s ‘24×7 Power for All’ program.
10. Answer - Option A
Explanation -
The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions. As per the Finance Ministry, the move is aimed at helping reduce pendency of cases in DRTs.

LIC ADO Financial Awareness Quiz - Set 25

1. The maximum value of any prepaid payment instrument, where specific limits have not been prescribed, shall not exceed ______

2. Financial Literacy includes the knowledge of making appropriate decisions about personal finance such as ________

3. 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:

4. The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to

5. ____ a/an electronic trading platform, operated by the Reserve Bank of India, used to facilitate the exchange of government securities and other money market instruments.

6. The government has announced ________rupee award for states that would complete the household electrification early under the Saubhagaya scheme.

7. The Defence Acquisition Council (DAC) accorded approval for the acquisition of defence equipment worth nearly Rs ______ crore which includes BrahMos Missiles, and Armoured Recovery Vehicles (ARVs) for Battle Tank Arjun.

8. According to Moody’s, Indian economy is expected to grow at _______________ percent in the calendar year 2019 and 2020.

9. Which of the following is an apex financial institution for housing?

10. Defence Acquisition Council (DAC) headed by Union Defence Minister NirmalaSitharaman approved the acquisition of defence equipment worth __________ Crore?

Answers and Explanations
1. Answer - Option C
Explanation -
The maximum value of any prepaid payment instrument, where specific limits have not been prescribed, shall not exceed Rs 50,000/-
2. Answer - Option E
Explanation -
Financial literacy is the education and understanding of various financial areas. This topic focuses on the ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement and tax planning.
3. Answer - Option B
Explanation -
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). It so designed as to maintain the price stability in the economy.
4. Answer - Option C
Explanation -
The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries
5. Answer - Option B
Explanation -
Till 2002, the Government securities market was mainly a telephone market. Buyers and sellers traded over telephone and submitted physical Subsidiary General Ledger (SGL) transfer forms for transfer of the Government securities and cheques for settlement of the funds to the Reserve Bank of India. These manual operations were inefficient and often resulted in delays. In order to improve efficiency in the market, the Reserve Bank of India took steps to automate the process of trading and settlement of Government securities transactions and the Negotiated Dealing System (NDS) was introduced in February 2002.
6. Answer - Option E
Explanation -
The Power Ministry announced Rs 100 croreaward for states that would complete the household electrification early under the Saubhagya scheme.
7. Answer - Option B
Explanation -
The Defence Acquisition Council (DAC) accorded approval for the acquisition of defence equipment worth nearly Rs 3000 crore which includes BrahMos Missiles, and Armoured Recovery Vehicles (ARVs) for Battle Tank Arjun. The decision was taken at a meeting chaired by Defence Minister NirmalaSitharaman.
8. Answer - Option C
Explanation -
Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020, and the government spending announced ahead of elections this year which will support nearterm growth.
9. Answer - Option B
Explanation -
NHB is an apex financial institution for housing. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels.
10. Answer - Option B
Explanation -
The Defence Acquisition Council (DAC) headed by Union Defence Minister NirmalaSitharaman approved the acquisition of defence equipment at cost of Rs 2700 crores. The following was approved: 3 Cadet Training ships for the Indian Navy to impart basic sea training for officer cadets and women officer trainees. These ships would perform hospital ship duties, providing humanitarian assistance and disaster relief, undertaking search and rescue (SAR) missions and non-combatant evacuation operations.

LIC ADO Financial Awareness Quiz - Set 26

1. Infrastructure Finance Company (IFC) is a non-banking finance company has a minimum Net Owned Funds of _______.

2. The most appropriate measure of a country’s economic growth is

3. “CAGR” is a measure of growth over multiple time periods. What “C” denotes in acronym CAGR?

4. Which of the following statements are true in regards NBFC?

5. National income doesn’t include:

6. Bank of Baroda recently signed MoU with ____ firms to develop “Baroda Kisan” to provide solutions for all major agricultural requirements.

7. As announced in Interim Budget 2019-20, what is target of Fiscal deficit for financial year 2019-20?

8. IDBI Bank has been categorized as ‘Private Sector Lender’ by RBI. What percentage of stake has been acquired by Life Insurance Corporation of India (LIC) in the bank recently?

9. What percentage of stake has been acquired by Asian Development Bank in micro-financier company ‘Annapurna Finance’ recently?

10. Which state government has launched ‘Pravasi Dividend Pension Scheme’ to provide regular pension to non-resident?

Answers and Explanations
1. Answer - Option C
Explanation -
IFC is a company which has net owned funds of at least Rs. 300 Crore and has deployed 75% of its total assets in Infrastructure loans is called IFC provided it has credit rating of A or above and has a CRAR of 15%.
2. Answer - Option C
Explanation -
Per capita income is the average income of the country. Per capita real income takes inflation into consideration.
3. Answer - Option B
Explanation -
The Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.
4. Answer - Option D
Explanation -
NBFC’s lend and make investments and hence their activities are similar to that of banks; however there are a few differences as given below:
i. NBFC cannot accept demand deposits; ii. NBFCs do not form part of the payment and settlement system and hence cannot issue cheques iii. Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
5. Answer - Option B
Explanation -
National income doesn’t include interest on unproductive national debt
6. Answer - Option E
Explanation -
Bank of Baroda has signed memorandum of understanding (MoU) with six firms namely Skymet Weather Services, Weather Risk Management Services, BigHaat, Agrostar India, EM3 Agri Services and PoortiAgri Services to develop “Baroda Kisan”. It will provide solutions for all major agricultural requirements through its holistic approach. The execution of the platform will be done by IT Centre of Excellence (ITCoE) of Bank of Baroda in partnership with IBM India.
7. Answer - Option C
Explanation -
The target of fiscal deficit for 2019-20 is 3.4% of GDP while for next year it is estimated to be 3.1% of GDP.
8. Answer - Option E
Explanation -
In March 2019, The Reserve Bank of India categorized IDBI Bank as a Private Sector Bank with effect from January 21, 2019 following Life Insurance Corporation of India (LIC) has acquired 51 per cent of the total paid-up equity share capital of the bank.
9. Answer - Option B
Explanation -
In February, 2019, Asian Development Bank (ADB) bought 14% stake in micro-financier Annapurna Finance for Rs. 137 crores. ADB Bank bought this stake with a motive of attracting long -term funds from global lenders and investors.
10. Answer - Option E
Explanation -
Kerala state government has launched a ‘Pravasi Dividend Pension Scheme’ to provide regular pension to non-resident Keralites on a one-time payment of Rs.5 Lakhs.

LIC ADO Financial Awareness Quiz - Set 27

1. According to RBI guidelines, what is the minimum percent of Capital to Risk Assets Ratio (CRAR) that all Regional Rural Banks (RRBs) must maintain?

2. _________ is a situation where the prices go out of control and the monetary authorities are unable to impose any check on it.

3. In NEFT, the maximum amount per transaction is limited to ______ for cash-based remittances within India.

4. Bank loans up to a limit of ____ per borrower for building social infrastructure in Tier II to Tier VI centers are eligible for classification under priority sector.

5. Assets which loss has been identified by the bank and remains uncollectable are termed as _______ assets.

6. What is the housing loan limit under priority sector lending for metropolitan cities?

7. ‘Mi Pay’, a UPI-Based Payments App launched recently by mobile company Xiaomi in India. Which bank is service provider of this application?

8. What amount of loan agreement was recently signed between the government of India, government of Andhra Pradesh and the World Bank for implementation of the ‘Andhra Pradesh Health Systems Strengthening Project’?

9. Which state has announced a Rs. 2250 crores scheme named as “MukhyaMantriKrishiYojana” to help farmers to double their income by 2022?

10. Which multilateral institution has acquired 14% stake in micro-financier Annapurna Finance?

Answers and Explanations
1. Answer - Option C
Explanation -
According to RBI guidelines, all Regional Rural Banks or RRBs are advised to achieve and maintain a minimum Capital to Risk Assets Ratio (CRAR) of 9%.CRAR is expressed as a percentage of a bank’s risk credit exposures and is also known as Capital Adequacy Ratio (CAR).It is the amount of money which a bank must keep with itself in form of cash. It is used by any bank in case of NPA or other financial problem to continue its operation or return the money of depositor.It protects depositor money and promote the stability and efficiency of financial systems.
2. Answer - Option D
Explanation -
Creeping Inflation: This is also known as mild inflation or moderate inflation. This type of inflation occurs when the price level persistently rises over a period at a mild rate. When the rate of inflation is less than 10 per cent annually, or it is a single digit inflation rate, it is moderate inflation.
Deflation is the reverse of inflation. It refers to a sustained decline in the price level of goods and services. It occurs when the annual inflation rate falls below zero percent (a negative inflation rate), resulting in an increase in the real value of money.
If mild inflation is not checked and if it is uncontrollable, it may assume the character of galloping inflation. Inflation in the double or triple digit range of 20, 100 or 200 percent a year is called galloping inflation.
Hyperinflation occurs when the prices go out of control and the monetary authorities are unable to impose any check on it.
3. Answer - Option B
Explanation -
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. The maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
4. Answer - Option B
Explanation -
Bank loans up to a limit of Rs. 50 millions per borrower for building social infrastructure for activities namely schools, health care facilities, drinking water facilities and sanitation facilities (including loans for construction/ refurbishment of toilets and improvement in water facilities in the household) in Tier II to Tier VI centers are eligible for classification under priority sector.
5. Answer - Option D
Explanation -
Loss assets are those where loss has been identified by the bank and remains uncollectable
Standard asset for a bank is an asset that is not classified as an NPA.
NPA is a loan or advance for which the principal or interest payment remains overdue for a period of 90 days
Sub Standard assets are the assets which have remained NPA for a period less than or equal to 12 months
Doubtful asset is an asset would be classified as doubtful if it has remained NPA for a period exceeding 12 months
6. Answer - Option A
Explanation -
Loans to individuals up to Rs. 35 lakhs in metropolitan centres (with population of ten lakh and above) and loans up to Rs. 25 lakhs in other centres for purchase/construction of a dwelling unit per family, are eligible to be considered as priority sector provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs. 45 lakhs and Rs. 3 lakhs, respectively. Housing loans to banks’ own employees are not eligible for classification under priority sector.
7. Answer - Option B
Explanation -
In March 2019, Xiaomi launched ‘MiPay’, a UPI (Unified Payments Interface) based mobile payment service in India to send money from one bank account to another or between UPI (Unified Payments Interface) accounts. The service provider of this application is ICICI Bank.
8. Answer - Option B
Explanation -
The World Bank has decided to provide a loan of Rs. 2200 crores ($328-million) to Andhra Pradesh for implementation of the ‘AP Health Systems Strengthening Project (APHSSP)’. The loan agreement was signed between the Government of India, government of Andhra Pradesh and the World Bank.
9. Answer - Option A
Explanation -
In December, 2018, Jharkhand chief minister Raghubar Das announced a Rs. 2250 crores scheme named as “MukhyaMantriKrishiYojana” which will help around 22.76 lakhs medium and marginal farmers to double their income by 2022. The Central Government has set a goal to double the income of all the farmers by 2022.
10. Answer - Option B
Explanation -
In February, 2019, Asian Development Bank (ADB) bought 14% stake in micro-financier Annapurna Finance for Rs. 137 crores. ADB Bank bought this stake with a motive of attracting long -term funds from global lenders and investors.

LIC ADO Financial Awareness Quiz - Set 28

1. What is the full form of CBLO?

2. The government extended the Concessional Financing Scheme (CFS) till ________ to support Indian entities bidding for important infrastructure projects abroad.

3. Under the revamped PradhanMantri Jan-DhanYojana (PMJDY), the accidental insurance cover for new RuPay cardholders has been raised from Rs 1 lakh to _____ for new PMJDY accounts opened after August 28, 2018.

4. What does ‘F’ stand for in ‘PMFBY’?

5. What is the full form of the term LIBOR as used in the financial/banking sectors?

6. What are index-linked bonds?

7. The Central government and the _____________________ have signed 300 million dollar loan agreements for India Energy Efficiency Scale up Programme.

8. The government of India has doubled the monetary limit to _________________ rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.

9. The maximum value of any prepaid payment instrument, where specific limits have not been prescribed, shall not exceed ______

10. The processing charges can be levied by NBFC- Micro Finance Institutions on its customers shall not be more than _______ of gross loan amount.

Answers and Explanations
1. Answer - Option D
Explanation -
A collateralized borrowing and lending obligation (CBLO) is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of the loan.
2. Answer - Option C
Explanation -
The government extended the Concessional Financing Scheme (CFS) till 2023 to support Indian entities bidding for important infrastructure projects abroad. Under the scheme, the government provides the counter-guarantee and interest equalization to EXIM bank. Also, the scheme will now cover all Indian entities, compared to the earlier stipulation of minimum 75% Indian shareholding.
3. Answer - Option B
Explanation -
Under the revamped PradhanMantri Jan-DhanYojana (PMJDY), the accidental insurance cover for new RuPay card holders has been raised from Rs 1 lakh to Rs. 2 lakh for new PMJDY accounts opened after August 28, 2018. The overdraft limit for account holders of PradhanMantri Jan DhanYojana has now been doubled to Rs. 10,000 from Rs. 5,000 earlier and there won’t be any conditions attached for overdraft up to Rs. 2,000. The age limit for availing overdraft facility has also been revised from 18-60 years to 18-65 years.
4. Answer - Option D
Explanation -
The PradhanMantriFasalBimaYojana (Prime Minister’s Crop Insurance Scheme) was launched by Prime Minister of India Narendra Modi on 18 February 2016.
The objective of the scheme is to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
It envisages a uniform premium of only 2 per cent to be paid by farmers for Kharif crops, and 1.5 per cent for Rabi crops.
The premium for annual commercial and horticultural crops will be 5 per cent
5. Answer - Option D
Explanation -
LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It stands for Intercontinental Exchange London Inter bank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world. LIBOR is administered by the ICE Benchmark Administration (IBA), and is based on five currencies: U.S. dollar (USD), Euro (EUR), pound sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF), and serves seven different maturities: overnight, one week, and 1, 2, 3, 6 and 12 months.
6. Answer - Option B
Explanation -
An index-linked bond is a bond in which payment of income on the principal is related to a specific price index – often the Consumer Price Index. This feature provides protection to investors by shielding them from changes in the underlying index. The bond’s cash flows are adjusted to ensure that the holder of the bond receives a known real rate of return.
7. Answer - Option A
Explanation -
The Central government and the World Bank have signed 300 million dollar loan agreements for India Energy Efficiency Scale up Programme. They signed 220 million dollar Loan Agreement and an 80 million Guarantee Agreement for the Efficiency Scale-Up Program
8. Answer - Option A
Explanation -
The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions. As per the Finance Ministry, the move is aimed at helping reduce pendency of cases in DRTs.
9. Answer - Option C
Explanation -
The maximum value of any prepaid payment instrument, where specific limits have not been prescribed, shall not exceed Rs 50,000/-
10. Answer - Option A
Explanation -
RBI regulated MFIs who takes a registration with RBI and fulfill the accompanying conditions are called NBFC-MFIs or Non-Banking Financial Company-Micro finance Institutions The Processing charges can be levied by NBFC-MFIs shall not be more than 1% of gross loan amount.

LIC ADO Financial Awareness Quiz - Set 29

1. In India, an Asset Reconstruction Company is regulated by?

2. Narrow Money is the term in monetary aggregates, which is represented by?

3. Which among the following commodity exchange has launched India’s first commodity options in gold?

4. What should be the minimum processing capacity of the Currency Chests according to the latest notification of the RBI?

5. The branches of selected banks authorized by the RBI to stock rupee notes and coins for the circulation in the economy is known as________

6. Which bank becomes the first lender to impose charges On UPI transactions, namely, Paytm, Google Pay, PhonePe?

7. What is the limit of Ways and Means Advances (WMA) set up by Reserve Bank of India(RBI) for the first half of the financial year 2019-20?

8. Under which project, Indian Navy has initiated the process to build six lethal submarines worth over Rs.50000 crore?

9. How much dividend will be paid by RBI to the government this year?

10. Recently, the central government infused how much amount into 12 Public Sector Banks?

Answers and Explanations
1. Answer - Option E
Explanation -
The leading problem in the country right now is alarming volume of Non-Performing Assets with the banking system. Several attempts were made to tackle NPAs. A serious such step was the creation of dedicated institutions called Asset Reconstruction Companies or ARCs that purchases bad assets or NPAs from banks at a negotiable price and helps banks to clean up their balance sheets (by removing the NPAs). RBI has got the power to regulate the ARCs
2. Answer - Option A
Explanation -
Different measures of money supply. Not all of them are widely used and the exact classifications depend on the country. M0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24 hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24 hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.
3. Answer - Option D
Explanation -
The Multi-Commodity Exchange of India Ltd (MCX) launched India’s first commodity options in gold, giving stakeholders a new set of financial instruments to hedge their price risks. Launched by Union Finance Minister ArunJaitley in New Delhi on the auspicious day of Dhanteras, the gold options received an encouraging response on Day 1.
4. Answer - Option D
Explanation -
Processing capacity of 6,60,000 pieces of banknotes per day. For those situated in the hilly/ inaccessible places, capacity of 2,10,000 pieces of banknotes per day
5. Answer - Option C
Explanation -
Currency Chest is a bank branch authorised by RBI to hold the money for distribution of money to other bank branches. It acts as an extended arm of RBI for the circulation of currency in the economy
6. Answer - Option C
Explanation -
Starting from 1st May, 2019, India’s private sector bank, Kotak Mahindra Bank would become the first lender to levy charges on peer-to-peer (P2P) UPI transactions available across all platforms, namely, Paytm, Google Pay, PhonePe, Trucaller Pay among others. For Kotak Mahindra Bank’s account holders, the first 30 peer-to-peer UPI fund transfer would be free of cost. Once a person exceeds 30 UPI transactions, he will be charged Rs. 2.50 per transaction for of Rs. 1000 or less. For transfers exceeding Rs. 1000, the bank will charge Rs. 5 plus 18% GST. No additional charges have been imposed upon reception of money via UPI for merchant transactions or bill payments.
7. Answer - Option B
Explanation -
The Reserve Bank of India has set the limits for Ways and Means Advances (WMA) to Rs. 75000 crore for the first half of the financial year 2019-20 (April 2019 to September 2019). As and when the government of India utilises 75% of the WMA limit, the central bank would activate fresh flotation of market loans. The rate of interest issued on the Ways and Means Advances (WMA) will be Repo Rate while the overdraft will exceed the Repo Rate by flat 2%. The WMA needs to be vacated after 90 days.
8. Answer - Option A
Explanation -
Under the ambitious Project 75-India, the Indian Navy desires to build 6 standard diesel-electric submarines. These submarines would be 50% massive in size than the Scorpene class submarines which are under-construction at the Mazagon Dockyards Limited. This would incur an overall cost of Rs. 50,000 crore. Since the maritime force needs the boats to have minimum 12 Land Attack Cruise Missiles (LACM) and Anti-Ship cruise missiles (ASCM), it wants the diesel-electric submarines to be furnished with heavy-duty firepower
9. Answer - Option A
Explanation -
RBI will pay an interim dividend of Rs 28000 crore to the government, a move that will help the Centre keep fiscal deficit in check
10. Answer - Option B
Explanation -
The Central Government approved recapitalisation of 12 public sector banks with an infusion of Rs 48,239 crore

LIC ADO Financial Awareness Quiz - Set 30

1. TDR is a method for controlling land use to complement land-use planning and zoning for more effective urban growth management and land conservation. Expand TDR

2. In which of the following fund transfer system, the transactions received up to a particular time are processed in batches?

3. Which of these is the first Destination Bank to go live with Net Banking and Debit Card-based e-mandate authentication?

4. Which of the following is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers?

5. ________ can be used for purchase of goods and services and also permit cash withdrawal at ATMs, Merchant Local Locations, and automated business correspondents.

6. Name the first central bank in the Asia-Pacific region to begin explicit interest rate easing cycle by cutting the policy rate?

7. The Central government has planned to raise the import duty on wheat from 30% to ______

8. As per World Economic Forum (WEF) report, India is set to uplift households out of poverty and reduce the share of households below the poverty line from current 15 percent to 5 percent by which year?

9. SEBI has reduced the minimum subscription requirement for InvITs from Rs ________ and its multiple

10. The World Bank has approved Rs.6000 crore to Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation for which scheme?

Answers and Explanations
1. Answer - Option A
Explanation -
Transferable Development Rights (TDR) is a method for controlling land use to complement land-use planning and zoning for more effective urban growth management and land conservation
2. Answer - Option C
Explanation -
National Electronic Funds Transfer (NEFT) is a nation-wide payment system. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in the Scheme. NEFT transactions are settled in batches.
3. Answer - Option C
Explanation -
Kotak Mahindra Bank is the first Destination Bank to go live with Net Banking and Debit Card-based e-mandate authentication
4. Answer - Option B
Explanation -
Bharat Bill Payment System is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers
5. Answer - Option C
Explanation -
Open System Payment Instruments can be used for purchase of goods and services and also permit cash withdrawal at ATMs, Merchant Local Locations, and automated business correspondents.
6. Answer - Option C
Explanation -
The Reserve Bank of India (RBI) is the first central bank in the Asia-Pacific region to have begun explicit interest rate easing cycle by cutting the policy rate back-to-back in the last two monetary policy reviews in 2019
7. Answer - Option A
Explanation -
The government is likely to raise the import duty on wheat from the current 30% to 40% to rule out any possibility of cheaper imports amid the harvesting of the new crop.
8. Answer - Option D
Explanation -
India will uplift around 25 million households out of poverty and reduce the share of households below the poverty line from 15 percent today to 5 percent by 2030, the World Economic Forum (WEF) said in a report
9. Answer - Option C
Explanation -
Minimum subscription requirement for InvITs: Rs 1 lakh (and its multiple) [earlier its was Rs 10 lakhs]
10. Answer - Option B
Explanation -
The World Bank has approved AtalBhujalYojana (ABHY), a Rs.6000 crore Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation. The scheme is to be implemented over a period of five years from 2018-19 to 2022-23, with World Bank assistance. The scheme proposal has already been recommended by the Expenditure Finance Committee and the Ministry will be seeking Cabinet approval for the project shortly.

LIC ADO Financial Awareness Quiz - Set 31

1. Pre-paid Payment Instruments (PPIs) facilitate the purchase of goods and services, including funds transfer, against the value stored on such instruments. Which of the following requirements a does company need to fulfill to issue PPIs in India?

2. If a banking company fails to maintain the required amount of SLR, what interest is it liable to pay to RBI on the shortfall?

3. The mutual fund shall ensure that the repurchase price of the units of a close-ended scheme shall not be lower than ______ of the Net Asset Value.

4. In which year did SEBI provide regulatory notification on mutual funds?

5. Equitas Small Finance Bank is a _____________ based financial institution.

6. Who has become the first lender to charge for UPI (Unified Payments Interface) use?

7. The Union government has decided to give how many billion USD financial assistanceto the island nation of Maldives?

8. Government of India has recently signed $ 300 million loan agreement with which international organisation to support IIFCL (Infrastructure Finance Company Limited) of India?

9. Recently Union government has announced to increase the contribution of government up to what percentage in “National Pension Scheme (NPS)”?

10. What percentage of stake has been acquired by Asian Development Bank in micro-financier company ‘Annapurna Finance’ recently?

Answers and Explanations
1. Answer - Option E
Explanation -
Pre-paid Payment Instruments (PPIs) are defined in the RBI Guidelines issued under the Payment and Settlements Systems Act, 2005 as payment instruments that facilitate the purchase of goods and services, including funds transfer, against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holders by cash, by debit to a bank account, or by credit card. Only those companies incorporated in India and have a minimum paid-up capital of Rs. 5 crore and minimum positive net worth of Rs. 1 crore at all the times are permitted to issue PPIs in India.
2. Answer - Option C
Explanation -
If a banking company fails to maintain the required amount of SLR, it shall be liable to pay to RBI in respect of that default, the penal interest for that day at the rate of three percent per annum above the Bank Rate on the shortfall and if the default continues on the next succeeding working day, the penal interest may be increased to a rate of five per cent per annum above the Bank Rate for the concerned days of default on the shortfall.
3. Answer - Option A
Explanation -
While determining the prices of the units, the mutual fund shall ensure that the purchase price is not lower than 93% of the Net Asset Value and the sale price is not higher than 107% of the Net Asset Value. The repurchase price of the units of a close-ended scheme shall not be lower than 95% of the Net Asset Value
4. Answer - Option C
Explanation -
SEBI notified regulations for mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. As far as mutual funds are concerned, SEBI formulates policies, regulates and supervises mutual funds to protect the interest of the investors
5. Answer - Option A
Explanation -
Equitas Small Finance Bank is headquartered in Chennai city. It was launched in 2007 as a Microfinance institution with just 4 branches. It was started as a small finance bank in 2016.
6. Answer - Option D
Explanation -
Kotak Mahindra Bank becomes the first lender to Charge for UPI Use.For each Kotak Bank account, the first 30 UPI fund transfers will be free, after which a charge will be levied on all fund transfers from the bank account.Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating interbank transactions.
7. Answer - Option B
Explanation -
The Union government has decided to give USD 1.4 billion to the island nation of Maldives. This decision came after Maldivian president Ibrahim Mohamed Solih met Prime Minister NarendraModi during his 3-days visit to India. This is Solih’s first foreign trip after he was sworn in as the President of Maldives in a ceremony on 17th November 2018, which PM Modi had also attended.
8. Answer - Option D
Explanation -
Recently in November, 2018, the Asian Development Bank (ADB) and the Government of India signed a $300 million Loan Agreement to support lending by ‘India Infrastructure Finance Company Limited (IIFCL)’.
9. Answer - Option B
Explanation -
Finance Minister ArunJaitley recently announced the rise in contribution of the government in National Pension Scheme (NPS) to 14 per cent from existing 10 per cent. The change in contribution was recommended by Committee of Secretaries (CoS), thus resulting in a total corpus of 24% from the previous 20%. Out of the 24%, 14 per cent would be contributed by the government and the remaining 10 per cent by the employees. Furthermore, he also made entire withdrawal amount tax free at the time of retirement by enhancing the tax exemption limit for lump sum withdrawal on exit to 60%.
10. Answer - Option B
Explanation -
In February, 2019, Asian Development Bank (ADB) bought 14% stake in micro-financier Annapurna Finance for Rs. 137 crores. ADB Bank bought this stake with a motive of attracting long -term funds from global lenders and investors.

LIC ADO Financial Awareness Quiz - Set 32

1. An emerging market economy is highly classified with relatively- one in which the country is becoming a developed nation and is determined through many socio__________

2. Depositor Education and Awareness Fund (DEAF) is maintained by which of the following?

3. Indian Financial System Code consists of how many alphanumeric digit?

4. For which of the following debt instruments, not having a fixed rate of interest over the life of the instrument, can ‘Floating Interest Rate’ be applied?

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

6. The Union Government has allocated how many crore rupees for the development of 40 satellite launch vehicles in the next four years?

7. India Post Payments Bank (IPPB) was setup under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India. How many Post Offices across urban and rural India, activated as banking access points?

8. As per RBI Report on Trend and Progress of Banking in India, what % of the total complaints received by all BO offices, is from tier-1 cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad?

9. Which Bank has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares?

10. Prime Minister NarendraModi has launched Ayushman Bharat, world’s largest government-funded healthcare scheme in Jharkhand’s capital Ranchi. It will offer a benefit cover of ___________________ per family per year.

Answers and Explanations
1. Answer - Option A
Explanation -
An emerging market economy is highly classified with relatively – one in which the country is becoming a developed nation and is determined through many socio- economic factors.
2. Answer - Option B
Explanation -
Depositor Education and Awareness Fund (DEAF) Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank. All banks are required to transfer money lying in accounts that have been inoperative for at least 10 years to the DEAF according to specific guidelines.
3. Answer - Option B
Explanation -
IFSC is an 11-character codewith the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero) and reserved for future use. Bank IFS Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches.
The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India.
4. Answer - Option E
Explanation -
An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement.
A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
5. Answer - Option B
Explanation -
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.
6. Answer - Option E
Explanation -
The Union Government has allocated 10,900 crore rupees for the development of 40 satellite launch vehicles in the next four years.Dr Sivan stated that Chandrayan Mission will be launched within three months. It will land in one part of the Moon which is still unexplored. The human space flight Gaganyaan is planned to be launched by 2022, the 75th anniversary of Independence
7. Answer - Option D
Explanation -
3,250 Post Offices across urban and rural India, activated as banking access points of IPPB.
8. Answer - Option E
Explanation -
The number of complaints registered at banking ombudsman offices have seen a 25% increase in the fiscal year 2018. “The banking ombudsman offices in tier-1 cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad accounted for more than 57% of the total complaints received by all BO offices,” the RBI Report on Trend and Progress of Banking in India has stated.
9. Answer - Option E
Explanation -
State-run Punjab National Bank (PNB) has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares. The bank stated it will issue up to 10 crore equity shares to its employees under ‘Employee Stock Purchase Scheme (ESPS)’. A note is being placed to board in its ensuing meeting dated June 15, 2018 regarding ESPS with a proposal for issuance of up to 10 crore equity shares to its employees, the bank said in a regulatory filing.
10. Answer - Option B
Explanation -
Prime Minister NarendraModi launched Ayushman Bharat, world’s largest government-funded healthcare scheme in Jharkhand’s capital Ranchi. The Centre’s flagship scheme has been renamed as PM Jan ArogyaYojana (PMJAY). The scheme will become operational from September 25 on the birth anniversary of PanditDeendayalUpadhyay. Ayushman Bharat-National Health Protection Scheme (AB-NHPS) will have a defined benefit cover of Rs 5 lakh per family (on a family floater basis) per year for secondary and tertiary care hospitalisation. It will offer a benefit cover of Rs 5 lakh per family per year. It will subsume the existing RashtriyaSwasthyaBimaYojana (RSBY), launched in 2008 by the UPA government.

LIC ADO Financial Awareness Quiz - Set 33

1. What is the expand form of ‘OTC’?

2. In Economics, the business of buying trade debts at a discount and making a profit when debt is realized and also taking over a collection of trade debts at agreed prices is termed _____.

3. In the context of Indian economy, ‘Open market Operations’ refers to ___________.

4. Which agency maintains the Micro Finance Development and Equity Fund in India?

5. As per Coinage Act 1906, in India, coins can be issued upto the denomination of?

6. What is the revised interest rate of Employee’s Provident Fund (EPF) for 2018-19?

7. What is the revised GDP growth of India for the financial year 2019-20, as per India Ratings and Research company?

8. Name the Cryptocurrency Exchange in India, which has launched the first Indian Platform for Wholesale Cryptocurrency Trading?

9. Which motif is depicted in the back side of the new Rs.20 denomination note?

10. Reserve Bank of India (RBI) has extended the ombudsman scheme coverage to non-deposit taking Non-banking Financial Companies (NBFCs) having asset size of how much worth?

Answers and Explanations
1. Answer - Option E
Explanation -
OTC – Over the Counter
The phrase “over-the-counter” can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments, such as derivatives, which are traded through a dealer network.
2. Answer - Option B
Explanation -
Forfeiting: In International Trade when an exporter finds it difficult to realize money from the importer, he sells the right to receive money at a discount to a forfaiter, who undertakes inherent political and commercial risks to finance the exporter, of course with assumption of a profit in the venture.Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.
3. Answer - Option B
Explanation -
Open Market Operations (OMO): The buying and selling of eligible securities in the money market by RBI for the purpose of curtailing or expanding the volume of credit. By selling securities the RBI can absorb funds, and buying the securities can release funds also into the market. The purpose of OMO is to influence the volume of cash reserves with the commercial banks and thus influence the volume of loans and advances they can make to the industrial and commercial sector.
4. Answer - Option B
Explanation -
In the Union budget of 2000-01, creation of Micro Finance Development Fund (MFDF) came into existence. The objective of the MFDF is to facilitate and support the orderly growth of the micro finance sector through diverse modalities for enlarging the flow of financial services to the poor, particularly for women and vulnerable sections of society, consistent with sustainability. Consequently, MFDF with a corpus of Rs.200 crore was established in NABARD.
5. Answer - Option D
Explanation -
The Reserve Bank can also issue notes in the denominations of one thousand rupees, five thousand rupees and ten thousand rupees, or any other denomination that the Central Government may specify. There cannot, though, be notes in denominations higher than ten thousand rupees in terms of the current provisions of the Reserve Bank of India Act, 1934. Coins can be issued up to the denomination of Rs.1000
6. Answer - Option D
Explanation -
The Department of Financial Services, a wing of the Ministry of Finance, has approved an Employee’s Provident Fund (EPF) interest rate hike of 10 basis point to 8.65 percent for 2018-19, as decided by the retirement fund body Employee’s Provident Fund Organisation (EPFO). This move will benefit more than 6 crores formal sector workers. Earlier in 2017- 18, the interest rate on EPF was 8.55 percent.In February 2019, the EPFO’s apex decision making body, the Central Board of Trustees headed by Labour Minister SantoshGangwar, had decided to hike the interest rate on EPF to 8.65 percent for 2018-19 from 8.55 percent for 2017-18. This hike was the first increase in the last three years.
7. Answer - Option C
Explanation -
India’s GDP growth projection for 2019-20 lowered to 7.3 percent by India Ratings and Research, a Fitch Group company, due to below normal monsoon prediction, continued agrarian distress and loss of momentum in industrial output. The earlier projected GDP growth was 7.5 percent.Other reason for lowered growth projection is slow progress on cases referred to the National Company Law Tribunal under Insolvency and Bankruptcy Code, 2016.Investment Expenditure Growth which is measured by gross fixed capital formation (GFCF) has also been downgraded to 9.2 percent from the earlier forecast of 10.3 percent for the year 2019-20, is another reason cited for lowering the growth forecast.
8. Answer - Option C
Explanation -
BuyUcoin, second oldest Cryptocurrency Exchange in India, has introduced a new and unique platform for wholesale cryptocurrency trading. This platform works on ‘free trading model’ which means it charges zero fee on any trade. This wholesale platform also known as OTC (Over-the-counter) Desk allows users to trade on a large scale with low price fluctuations. This new platform will help to improve the problem of liquidity of cryptocurrency in Indian market. This will also help in quicker transactions, better prices and market stability.
9. Answer - Option B
Explanation -
The Reserve Bank of India (RBI) will issue new Rs 20 denomination banknotes having a base colour of greenish -yellow with size of 63 X 129 mm. The first Rs 20 notes were issued in the Mahatma Gandhi Series in August 2001.The new note will have a motif of Ellora caves on the dorsal side.
10. Answer - Option A
Explanation -
The Reserve Bank of India (RBI) extended the ombudsman scheme coverage to non-deposit taking (NBFCs) Non-banking Financial Companies having asset size of Rs.100 crore or higher. This was notified in the Statement of Developmental and Regulatory Policies under the Monetary Policy Statement.The objective of this was to provide a cost-free and swift complaint-redressal mechanism relating to shortage in the services, concerning loan and other issues by NBFCs under the scheme.The scheme before the extension to some categories of NBFCs was effective for deposit-accepting NBFCs.

LIC ADO Financial Awareness Quiz - Set 34

1. Each subscriber under APY shall receive a Central Government guaranteed minimum pension of

2. SCSS offers regular income, highest safety and tax saving, making it a popular product for those over _____ years of age

3. Credit rating is _______

4. Which of the following is defined as the difference between current assets and current liabilities?

5. Which of the following is an investment strategy in which a fund invests in other types of funds?

6. The GST Council allowed the filing of GST returns with an annual turnover of up to Rs. 5 crore _____.

7. Which of the following financial institution has sanctioned Rs 335 crore under the Rural Infrastructure Development Fund (RIDF) to West Bengal?

8. Which of the following bank has proposed to sell its stake in PNB Met-life India to private equity player Oman India Joint Investment Fund II for Rs 185 crore?

9. Which Mutual Funds company had surpassed ICICI Prudential MF to gain top position?

10. Which of the following bank has designed and developed PaiSA portal for quicker processing of loans under the DeendayalAntyodayaYojana?

Answers and Explanations
1. Answer - Option D
Explanation -
Each subscriber under APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until death.
2. Answer - Option C
Explanation -
The Senior Citizens Savings Scheme (SCSS) offers regular income, highest safety and tax saving, making it a popular product for those over 60 years of age.
3. Answer - Option A
Explanation -
Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. An assessment of the creditworthiness of a borrower with respect to a particular debt or financial obligation
4. Answer - Option B
Explanation -
The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities
5. Answer - Option D
Explanation -
Funds of Fund is an investment strategy in which a fund invests in other types of funds
6. Answer - Option C
Explanation -
The GST Council allowed the filing of GST returns with an annual turnover of up to Rs. 5 crore is Quarterly.
7. Answer - Option A
Explanation -
The National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 335 crore under the Rural Infrastructure Development Fund (RIDF) to West Bengal. The fund would be used for 158 minor irrigation projects and 23 flood protection projects.
8. Answer - Option D
Explanation -
Jammu and Kashmir Bank has proposed to sell its stake in PNB Met-life India to private equity player Oman India Joint Investment Fund II for ₹ 185 crore.
9. Answer - Option C
Explanation -
HDFC Mutual Fund has surpassed ICICI Prudential MF to gain top position. According to AMFI data, HDFC MF has assets worth Rs 3.35 lakh crore while ICICI Prudential MF manages only Rs 3.08 lakh crore. A mutual fund is a professionally managed investment pool from various investors that is used to buy securities.
10. Answer - Option D
Explanation -
The Union Ministry of Housing and Urban Affairs has launched the ‘PAiSA’ – Portal for Affordable Credit and Interest Subvention Access, a centralized electronic platform for quicker processing of loans under the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). The web platform was designed and developed by Allahabad Bank

LIC ADO Financial Awareness Quiz - Set 35

1. Which multilateral financial institution has recently approved $400 million loan for water supply project in state of Andhra Pradesh?

2. What amount Andhra Pradesh state government has announced to provide to unemployed youth under ‘Mukhyamantri Yuva Nestam’ scheme?

3. Which company has launched an instant loan approval and disbursal product called ‘Boost’?

4. Reserve Bank initiated steps to set up a digital Public Credit Registry (PCR). For developing the registry, the RBI has invited expression of interest (EOI) from companies with a turnover of over __________ in the last three years.

5. How much amount has been announced for Rashtriya Gokul Mission for the current year?

6. What is the authorized capital of National Insurance Company Limited (NICL)?

7. In which of the following city does not have RBI’s currency printing facility?

8. Individual taxpayers having taxable annual income up to Rs _______________ will not be required to pay any income tax.

9. What is the full form of PCA?

10. Fitch Ratings revised downwards India’s GDP growth forecast to _______________ for current fiscal.

Answers and Explanations
1. Answer - Option D
Explanation -
Asian Infrastructure Investment Bank (AIIB- headquarter-Beijing, China) had approved a $400 million loan for a water sanitation project in Andhra Pradesh. India is the second largest shareholder of Asian Infrastructure Development Bank after China.
2. Answer - Option B
Explanation -
Andhra Pradesh government has launched unemployment allowance scheme “Mukhyamantri Yuva Nestam”. The allowance amount would be of Rs. 1000 per month.
3. Answer - Option D
Explanation -
Online payment company MobiKwik has launched an instant loan approval and disbursal product called ‘Boost’. As per the offer, loans of upto Rs 60,000 can be sanctioned as well as disbursed in a matter of 90 seconds. The approval time for the loan would be 30 seconds based on an innovative risk scoring model called ‘Mobiscore’. The minimum amount of loans that can be approved is for Rs. 5000 and the users will have the option to transfer the amount in their bank accounts.
4. Answer - Option C
Explanation -
To capture details of all borrowers, willful defaulters and also the pending legal suits, RBI has initiated steps to set up a wide-based digital Public Credit Registry (PCR). For developing the registry, the RBI has invited expression of interest (EOI) from companies with a turnover of over Rs. 100 crores in the last three years.
5. Answer - Option D
Explanation -
Allocation of Rs.750 crore for Rashtriya Gokul Mission has been announced for the current year itself. Setting up of “Rashtriya Kamdhenu Aayog” to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity of cows has also been announced. The Aayog will also look after effective implementation of laws and welfare schemes for cow.
6. Answer - Option B
Explanation -
The authorized capital and paid-up equity capital of the company is Rs.200 crore and Rs.100 crore respectively. National Insurance Company Limited (NICL) is a state owned general insurance company in India. The company headquartered at Kolkata was established in 1906 and nationalized in 1972.
7. Answer - Option D
Explanation -
For printing currency, Reserve Bank of India (RBI) has four facilities at Dewas, Nasik, Mysore and Salboni.
8. Answer - Option A
Explanation -
Individual taxpayers having taxable annual income up to Rs.5 lakhs will not be required to pay any income tax.
9. Answer - Option C
Explanation -
PCA stands for Prompt Corrective Action.
10. Answer - Option B
Explanation -
Fitch Ratings revised downwards India’s GDP growth forecast to 7.2% for current fiscal citing higher financing cost and reduced credit availability. In its Global Economic Outlook, Fitch projected that for 2019-20 and 2020-21 financial years, India’s GDP growth will be 7% and 7.1% respectively. Fitch had in June projected India to grow at 7.4% in current fiscal and 7.5% in 2019-20.

LIC ADO Financial Awareness Quiz - Set 36

1. What do you understand by term ‘Venture Capital’?

2. REER is the weighted average of nominal exchange rates, adjusted for inflation. What REER reflects?

3. A foreign company can access Indian securities market only by issuing IDRs. What “D” denotes in IDR?

4. Which article of the Indian Constitution envisages ‘Annual Financial Statement’ generally known as ‘Budget’?

5. _______ is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears.

6. “Ayushman Bharat scheme” will provide free insurance of upto ______ per family per year at any government or private hospitals all over India.

7. What amount of loan agreement was recently signed between Indian government and ‘Asian Development Bank’ to improve state highways in Bihar?

8. The Reserve Bank of India (RBI) has announced to transfer Rs. 28,000 crores as interim dividend to the Government of India in the current Financial Year (FY) 2018-19. What was the total amount earned by ‘Union Government’ as dividend from RBI in fiscal year 2018-19?

9. Which organization has signed USD 100 million agreement with ‘Green Climate Fund’ to boost solar power projects in India?

10. According to Reserve Bank of India, bank credit rose to __________ percent for the fortnight to March 29?

Answers and Explanations
1. Answer - Option B
Explanation -
Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
2. Answer - Option B
Explanation -
Real Effective Exchange Rate (REER) is the weighted average of nominal exchange rates, adjusted for inflation. REER is calculated on the basis of NEER (Nominal Effective Exchange Rate). REER captures inflation differentials between India and its major trading partners and reflects the degree of external competitiveness of Indian products.
3. Answer - Option E
Explanation -
A foreign company desirous of accessing Indian securities market for the purpose of raising funds is not permitted to directly list its equity shares on an Indian stock exchange. It can only do it by issuing Indian Depository Receipts (IDRs).
4. Answer - Option E
Explanation -
Article 112 of the Indian Constitution envisages the Annual Financial Statement of the government. This annual statement displays the revenue and expenditure of the last year and estimates of revenue and expenditure for the coming financial year.
5. Answer - Option C
Explanation -
Hot Money is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears.
6. Answer - Option A
Explanation -
The government-sponsored health insurance scheme will provide free coverage of upto Rs 5 lakh per family per year at any government or even empanelled private hospitals all over India.
7. Answer - Option D
Explanation -
In November, 2018, the Asian Development Bank (ADB) and the Government of India signed a $200 million loan in New Delhi to fund up-gradation of 230 kilometers State Highways in Bihar under ‘Bihar State Highways III Project (BSHP-III)’.
8. Answer - Option E
Explanation -
The Reserve Bank of India (RBI) has announced to transfer Rs. 28,000 crores as interim dividend to the Government of India in the current Financial Year (FY) 2018-19, in order to enable the union government to meet its revised fiscal deficit target of 3.4% of the GDP for FY19. In August 2018, it transferred Rs. 40,000 crore taking the total to Rs. 68,000 crores as dividend for the 2018-19 fiscal. The RBI Act, 1934 requires RBI to pay the Government its surplus after making provisions for bad and doubtful debts, depreciation in assets and contribution to staff and superannuation.
9. Answer - Option B
Explanation -
In December, 2018, the National Bank for Agriculture and Rural Development (NABARD) signed a loan agreement worth USD 100 million with Green Climate Fund (GCF) to boost rooftop solar power capacity projects through the private sector participation. NABARD is the NIE (National Implementation Entity) for ‘Adaptation Fund’ of UNFCC and National Adaption Fund for Climate Change (NAFCC).
10. Answer - Option A
Explanation -
According to the data of Reserve Bank of India, which was released on 11th April, 2019, bank credit rose 13.24% to Rs 97.67 lakh crore for the fortnight to March 29.This is the second consecutive robust credit growth after the same had declined to 4.54 percent in FY17 at Rs 78.41 lakh crore, which was the lowest since 5 decades. Deposits have grown by 10.03 percent to Rs 125.72 lakh crore during the same period.

LIC ADO Financial Awareness Quiz - Set 37

1. The term used for an economic condition, in which there are only two large buyers for a specific product or service is___________.

2. In which of the following years symbol of Indian rupee came into existence?

3. Which of the following International financial institutions compiles the system of national accounts which aim at measuring GDP as per national Standards?

4. BPLR was introduced by the Reserve Bank of India in 2003. In BPLR, ‘P’ denotes –

5. What is the minimum amount of a Certificate of Deposit?

6. GST collections in February dropped to ₹____________in February from ₹1.02 lakh crore in the previous month.

7. RBI recently, imposed penalties worth Rs. ______crore on IDBI, Dena Bank.

8. Centre and Asian Development Bank (ADB) signed a _______ million-dollar loan agreement to ope rationalize two lines of the Mumbai Metro Rail System.

9. ICICI Bank will acquire 9.9% stake in which of the following Non-Banking Finance Company?

10. SBI to form Payment Joint venture with Hitachi Payment Services Pvt Ltd in which SBI’s stake would be ______%.

Answers and Explanations
1. Answer - Option C
Explanation -
An economic condition, in which there are only two large buyers for a specific product or service is termed as Duopsony. Members of a duopsony have great influence over sellers and can effectively lower market prices for their supplies.
2. Answer - Option D
Explanation -
The Indian rupee is the official currency of India. Designed by Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010. The new sign is a combination of the Devanagari letter “र” (“ra”) and the Latin capital letter “R” without its vertical bar (like the R rotunda). The parallel lines at the top (with white space).
3. Answer - Option C
Explanation -
The System of National Accounts (SNA) is compiled by International Monetary Fund, it is the internationally agreed standard set of recommendations on how to compile measures of economic activity Consequently, the national accounts are one of the building blocks of macroeconomic statistics forming a basis for economic analysis and policy formulation. Economic and financial data from member countries are used to compile annual (and sometimes quarterly) data on gross product, investment, capital transactions, government expenditure and foreign trade.
4. Answer - Option B
Explanation -
Benchmark Prime Lending Rate is an abbreviation of BPLR. It is the rate which banks charge to their customers with good credit history. Banks are free to set their prime lending rate.
5. Answer - Option C
Explanation -
Minimum amount of a Certificate of Deposit (CD) should be Rs.1 lakh, i.e., the minimum deposit that could be accepted from a single subscriber should not be less than Rs.1 lakh, and in multiples of Rs. 1 lakh thereafter.
6. Answer - Option D
Explanation -
GST collections in February dropped to ₹97,247 crore in February from ₹1.02 lakh crore in the previous month. The number of sales return or GSTR-3B filed for the month of January up to February 28, 2019 was 73.48 lakh.
7. Answer - Option B
Explanation -
RBI has imposed a monetary penalty of Rs. 2 crore on Dena Bank. Rs 1 crore penalty was imposed on IDBI Bank for non-compliance of its regulatory directions on time bound implementation and strengthening of SWIFT related operational controls.
8. Answer - Option C
Explanation -
Centre and Asian Development Bank (ADB) signed a 926-million-dollar loan agreement to ope-rationalize two lines of the Mumbai Metro Rail System. It is the single largest infrastructure project loan in ADB history.
9. Answer - Option C
Explanation -
ICICI Bank will acquire 9.9% stake in Non-Banking Finance Company (NBFC) Kisan Finance for nearly ₹18 crore. Kisan Finance, which was incorporated in December 2017, had registered a net loss of ₹48 lakh in 2017-18.
10. Answer - Option C
Explanation -
State Bank of India (SBI) and Hitachi Payment Services Pvt Ltd, a wholly-owned subsidiary of Hitachi Ltd, launched their merchant-acquiring joint venture, SBI Payment Services Pvt Ltd (SBIPSPL) in Mumbai. SBI has a 74 per cent stake & 26% is with Hitachi.

LIC ADO Financial Awareness Quiz - Set 38

1. The credit rating agencies (CRAs) operating in India is regulated by which of the following institutions?

2. A fund that tracks an index but can be traded like a stock is known as _______

3. We often read about EBITDA margin of companies. What does the letter ‘E’ denote in the term EBITDA?

4. What does the letter ‘T’ denote in the term TReDS as used in banking/finance?

5. “AePS” is a bank-led model for transactions at micro-ATMs. Here, A stands for ___________

6. ‘KisanSuvidha loan’ was launched by which among the following small finance banks?

7. Recently, The Navy has finalized ₹ 700 Crorecontract with _________ for establishing an upgraded Naval Airfield Integrated Security System.

8. Recently, the government has proposed to launch ‘PradhanMantriShram-Yogi Maandhan’ for the unorganised workers with monthly income up to _________.

9. The Insolvency and Bankruptcy Code has helped the Public Sector Banks recover over _________ crore in the 3 quarters of the current fiscal.

10. RBI recently mandated banks to treat ______________ and more as bulk deposits.

Answers and Explanations
1. Answer - Option B
Explanation -
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments,and in some cases, of the servicers of the underlying debt,but not of individual consumers.The debt instruments rated by CRAs include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, and collateralize securities, such as mortgage-backed securities and collateralize debt obligations. The credit rating agencies (CRAs) operating in India are regulated by SEBI.
2. Answer - Option A
Explanation -
An ETF (Exchange Traded Fund) is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
3. Answer - Option A
Explanation -
The EBITDA margin measures a company’s earnings before tax, depreciation and amortization as a percentage of the company’s total revenue. Because EBITDA is calculated before any interest, taxes, depreciation and amortization, the EBITDA margin measures how much cash profit a company made in a given year.Fullform of EBITDA is Earnings before interest, tax, depreciation and amortization.
4. Answer - Option E
Explanation -
A number of private sector companies and a dozen state-run firms and public sector banks have registered themselves on the Trade Receivables Electronic Discounting System (TREDS) platform, paving way for faster payments to micro, small and medium enterprises (MSMEs).TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers. It also enables discounting of invoices of MSME sellers raised against large corporate, allowing them to reduce working capital needs.
5. Answer - Option D
Explanation -
Aadhaar Enabled Payment System (AEPS) is a type of payment system which allows Aadhaar card holders to seamlessly make financial transactions through Aadhaar-based authentication. Objective: To empower a bank customer to use Aadhaar as his/her identity to access his/her respective Aadhaar enabled bank account and perform basic banking transactions.
6. Answer - Option B
Explanation -
Ujjivan SFB announced the launch of Kisan Suvidha loan to offer collateral-free loans for both agriculture &allied activities to small & marginal farmers. The product provides hassle-free loans to individuals with the amount ranging from ₹ 60000 – ₹ 2 Lakh.
7. Answer - Option B
Explanation -
The Navy finalized a ₹700 crore contract with Bharat Electronics Limited for establishing an upgraded Naval Airfield Integrated Security System. It will strengthen the perimeter security of its air stations. Its implementation would be completed in 2020.
8. Answer - Option A
Explanation -
Government has proposed to launch ‘PradhanMantriShram-Yogi Maandhan’ for the unorganized sector workers with monthly income up to ₹ 15000. The scheme will provide an assured monthly pension of ₹ 3000 from the age of 60 years. The project outlay of the scheme is ₹ 500 Crore.
9. Answer - Option E
Explanation -
FM PiyushGoyal has exhorted state-run banks to step up lending to micro, small & medium enterprises, agriculture and housing sectors. The Insolvency and Bankruptcy Code has helped the PSBs recover over ₹ 1 Lakh Cr in the 3 quarters of the current fiscal.
10. Answer - Option A
Explanation -
RBI doubled the limit for banks to consider ₹2 crore and more as bulk deposits from the earlier ₹1 crore with an aim to enhance operational freedom of banks. Banks generally offer different rates of interest only on bulk deposits of ₹1 crore and more.

LIC ADO Financial Awareness Quiz - Set 39

1. Which among the following has become the first small finance bank to introduce personal loan scheme for salaried employees?

2. What is the present refinance limit for housing finance companies?

3. Under the Credit Risk Guarantee Fund Scheme, Individual borrowers can get guarantee cover for housing loans up to __________.

4. NBFC- Infrastructure Finance company should have a minimum Capital to Risk (Weighted) Assets Ratio of _________.

5. India has extended Line of Credit (LoC) of $200 million to which country through Exim Bank for infrastructure and housing projects.

6. IIFL Home Finance signed anMoU with which state government for building houses under Pradhan Mantri Awas Yojana.

7. India has signed $950 million contract with ________ to buy two stealth frigates.

8. Swift India has partnered with fin-tech company ____________ to create blockchain platform to prevent frauds and to ensure safety of transactions.

9. Reserve Bank of India disbursed $ ________ million loan amounts to Sri Lanka to boost its reserves.

10. Recently, SEBI withdrew _________ percentage limit on investments by Foreign Portfolio Investors in corporate bonds of an entity.

Answers and Explanations
1. Answer - Option A
Explanation -
Ujjivan Small Finance Bank, a wholly owned subsidiary of Ujjivan Financial Services Limited, launched personal loan facility for salaried professionals making it the first small finance bank in India to offer this scheme. The personal loan will be available for salaried professionals who are earning a monthly salary above Rs 15, 000. Individuals can avail loans starting from Rs 50,000 up to Rs 15 lakhs.
2. Answer - Option A
Explanation -
The National Housing Bank (NHB) has set the refinance limit to Rs 30,000 crore for housing finance companies for 2018-19 in view of the current liquidity position of the sector. It helps alleviate the liquidity crunch that the sector is facing following series of defaults by group companies of IL&FS Ltd.
3. Answer - Option B
Explanation -
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) was formulated by the Ministry of Housing and Urban Poverty Alleviation. The objective of the scheme is to provide credit guarantee support to Collateral free/third-party guarantee free housing loans up to Rs.5 lakhs extended by eligible lending institutions for Low Income Housing in urban areas. National Housing Board has been mandated to manage the Fund Trust under the scheme.
4. Answer - Option B
Explanation -
Infrastructure Finance Company is a non-banking finance company which deploys at least 75% of its total assets in infrastructure loans.It should have a minimum Net Owned Funds of ₹ 300 crore and a Capital to Risk (Weighted) Assets Ratio (CRAR) of 15%.NBFCs lend and make investments and hence their activities are like banks. But they cannot accept demand deposits, they do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
5. Answer - Option C
Explanation -
India has extended Line of Credit (LoC) $200 million to Uzbekistan through Exim Bank which entered into an agreement with Uzbekistan to facilitate credit line to finance housing and social infrastructure projects.
6. Answer - Option B
Explanation -
IIFL Home Finance signed a Memorandum of Understanding (MoU) with the Maharashtra government for capacity building for affordable housing through credit-linked subsidy scheme (CLSS) under PradhanMantriAwasYojana (PMAY). IIFL Chairman- Nirmal Jain
7. Answer - Option B
Explanation -
India has signed a $950 million contract with Russiafor 2 upgraded Krivak III-class stealth frigates. They are built by Yantar Shipyard of Russia and will be powered by Ukrainian gas turbine engines. They are expected to be delivered by the end of 2022.
8. Answer - Option E
Explanation -
The banking sector is set to create a block chain platform with SWIFT India to prevent frauds and ensure transparency and security of real-time transactions. SWIFT India has partnered with fin-tech company MonetaGo for a pilot project.
9. Answer - Option A
Explanation -
Reserve Bank of India (RBI) disbursed $400 million to the Central Bank of Sri Lanka (CBSL) under the SAARC swap facility. Sri Lanka’s reserves dipped from $7991 million to $6985 million due to the political crisis.
10. Answer - Option C
Explanation -
Securities and Exchange Board of India (SEBI) withdrew the 20% limit on investments by Foreign Portfolio Investors in corporate bonds of an entity. The regulator said the restriction is being withdrawn in accordance with a circular issued by the Reserve Bank of India.

LIC ADO Financial Awareness Quiz - Set 40

1. IFSC code is used to identify the specific branch taking part in the four primary Electronic Funds Settlement Systems in India. _________ is not a part of these four systems.

2. CRISIL is a ___________________.

3. ___________ is currency that moves regularly, and quickly, between financial markets, so investors ensure they are getting the highest short-term interest rates available.

4. ‘CBLO’ is a money market instrument operated by ____________.

5. Motif of Sanchi Stupa can be seen on the reverse side of _______ note.

6. In February 2019, the Asian Development Bank has bought a 14% stake in __________ for ₹ 137 Crore.

7. Recently, the Reserve Bank of India has set Ways and Means limit for government at ₹ 75000 Crore. Which among the following is true about Ways and Means Advances (WMA)?

8. Recently, the International Monetary Fund has cut India’s growth forecast for the financial year 2019-20 to _______.

9. What is the current Marginal Standing Facility Rate (MSF) of Reserve Bank of India?

10. The National Payments Corporation of India has slashed the usage fees to _________ for UPI transactions up to ₹ 1000.

Answers and Explanations
1. Answer - Option A
Explanation -
IFSC stands for Indian Financial System Code. It is a 11-digit alpha-numeric code that uniquely identifies a bank branch participating in any RBI regulated funds transfer system. The IFSC code helps to transfer money using,

Real Time Gross Settlement (RTGS)

National Electronic Funds Transfer (NEFT)

Immediate Payment Service Systems (IMPS)

Centralized Funds Management System (CFMS)

2. Answer - Option D
Explanation -
Indian credit rating industry has evolved over a period of time.
Indian credit rating industry mainly comprises of CRISIL, ICRA, CARE, ONICRA, FITCH & SMERA. CRISIL is the largest credit rating agency in India, with a market share of greater than 60%.
It is a full-service rating agency offering its services in manufacturing, service, financial and SME sectors.
3. Answer - Option E
Explanation -
Hot money is currency that moves regularly, and quickly, between financial markets, so investors ensure they are getting the highest short-term interest rates available.
It refers to funds that are controlled by investors who actively seek short-term returns.
Hot money continuously shifts from countries with low-interest rates to those with higher rates; these financial transfers affect the exchange rate if there is a high sum and also potentially impact a country’s balance of payments.
4. Answer - Option D
Explanation -
‘Collateralize Borrowing and Lending Obligation (CBLO)’, as the name implies facilitates in a collateralize environment, borrowing and lending of funds to market participants who are admitted as members in CBLO Segment. CBLO is conceived and developed by ‘Clearing Corporation of India Ltd (CCIL)’. It is hosted and maintained by Clear Corp Dealing Systems (India) Ltd, a fully owned subsidiary of CCIL.
5. Answer - Option
Explanation -

6. Answer - Option E
Explanation -
The Asian Development Bank (ADB) has bought a 14% stake in micro-financier Annapurna Finance for ₹ 137 Crore.
ADB’s investment in the Bhubaneswar-based Annapurna is an equity expansion, while a few of the existing investors raised their holding in the MFI through secondary market deals totalling ₹ 75 Crore.
7. Answer - Option D
Explanation -
In Ways and Means Advance, the interest rate on the overdrafts would be 2% more than the repo rate.
WMA is a temporary loan facility provided by the Reserve Bank of India to the central and state governments to meet their temporary mismatches in the receipts and Payments.
It has to be vacated after 90 days and the interest rate for WMA is currently charged at the repo rate.
When the WMA limit is crossed the government takes recourse to overdrafts, which are not allowed beyond 10 consecutive working days.
The interest rate on overdrafts is 2% more than the repo rate.
8. Answer - Option B
Explanation -
The International Monetary Fund (IMF) has cut India’s growth forecast for 2019-20 from 7.5% to 7.3%.
It has further projected the country to grow at 7.5% in 2020-21, supported by the continued recovery of investment & robust consumption.
9. Answer - Option B
Explanation -
The current Marginal Standing Facility Rate is 6.25%.

10. Answer - Option A
Explanation -
The National Payments Corporation of India has slashed usage fees to 10 paisa from 25 paisa for Unified Payments Interface transactions up to ₹1,000 for small transactions to expand the system’s adoption among banks and payment service providers.
The charge for transactions above ₹1,000 has been retained at 50 paisa.

LIC ADO Financial Awareness Quiz - Set 41

1. The Unit Trust of India (UTI) act was formed in which year?

2. India’s first share market was set up in which city?

3. What is the longest permissible period for which a fixed deposit can be accepted by a commercial bank?

4. The Overdraft limit under the PMJDY Scheme has been increased to Rs __________.

5. The headquarter of the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is located in which city?

6. ________, with India’s worst-bad loan ratio will sell 100 billion rupees of stressed assets.

7. Which bank has decided to link the interest rate paid on the savings bank balance of over Rs. 1 lakh to the repo rate in March 2019?

8. Insurance Regulatory and Development Authority (IRDAI) imposed a fine of Rs. _______ on United India Insurance Co (UIIC) Ltd for violating certain procedures.

9. Which of the following Payments Banks partnered with Suryoday Small Finance Bank to launch a sweep account facility on 4 February 2019?

10. The Railways has been allocated Rs.________ Cr in the Interim Budget 2019-20.

Answers and Explanations
1. Answer - Option B
Explanation -
The Government of India made a financial set up i.e. ‘The Unit Trust of India’ by passing special Unit Trust of India Act 1963, on 1[latex]^{st}[/latex] of February 1964.
2. Answer - Option A
Explanation -
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange in the country.
3. Answer - Option C
Explanation -
The longest permissible period for which a fixed deposit can be accepted by a commercial bank is 10 years.
4. Answer - Option C
Explanation -
The Overdraft limit under the PMJDY Scheme has been increased to Rs.10,000.
5. Answer - Option B
Explanation -
The headquarter of the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is located in Bengaluru.
6. Answer - Option B
Explanation -
IDBI Bank Ltd., the lender with India’s worst-bad loan ratio will sell 100 billion rupees of stressed assets. It will be out of the RBI’s prompt corrective action framework by September as bad-loan ratio narrows and profits rise. IDBI’s gross bad loan ratio stood at about 30 percent as of December 31[latex]^{st}[/latex], 2018.
7. Answer - Option B
Explanation -
In a first of its kind, State Bank of India has decided to link the interest rate paid on the savings bank balance of over Rs. 1 lakh to the repo rate. It will also link cash credit accounts and overdrafts, with limits above Rs. 1 lakh, to the repo rate. The new system will come into effect from 1[latex]^{st}[/latex] May 2019. The aim of the system is to increase the effectiveness of monetary transmission.
8. Answer - Option B
Explanation -
Insurance Regulatory and Development Authority (IRDAI) imposed a fine of Rs 9 lakh on state-owned United India Insurance Co (UIIC) Ltd for violating certain procedures.3 violations were found during the inspection, of which 2 attracted the fine. UIIC is headquartered in Chennai, while IRDAI is in Hyderabad.
9. Answer - Option D
Explanation -
Fino Payments Bank partnered with Suryoday Small Finance Bank on 4[latex]^{th}[/latex] February to launch a sweep account facility.The partnership will help FPB address the issue of deposit limit that the payment banks are facing at the moment. This would also allow customers to seamlessly transfer excess amount from their account in FPB to SSFB.
10. Answer - Option B
Explanation -
Railways received a budgetary allocation of Rs 65,837 crore and highest ever outlay for capital expenditure amounting to Rs 1.60 lakh crore in the Budget for the year 2019-20, which includes a whopping 200 per cent increase in funds for passenger amenities.

LIC ADO Financial Awareness Quiz - Set 42

1. The amount which the shareholders will collectively get if any mutual fund is dissolved or liquidated is known as?

2. Which of the following is India’s first Asset Reconstruction Company?

3. Who regulates Infrastructure Investment Trust (InvITs)?

4. Foreign Companies are allowed to access the Indian Capital Market by issuing __________

5. A __________ is a zero coupon bond whose maturity is very high.

6. Which bank has planned to raise ₹ 2045 crore by issuing Basel III-compliant bonds?

7. RBI slapped fine of Rs 1 crore on which bank for not monitoring the end use of funds in a certain case?

8. RBI announced a transfer of interim surplus amounting to Rs __________ crores to the centre.

9. RBI has capped outstanding External Commercial Borrowings (ECBs) at ______% of country’s GDP.

10. As per Moody’s report, Indian economy is expected to grow at ____________ in calendar year 2019 and 2020.

Answers and Explanations
1. Answer - Option C
Explanation -
Net Asset Value of a fund is the market value of the asset minus the liability on the day of valuation.
2. Answer - Option E
Explanation -
Asset Reconstruction Company (India) Ltd. (Arcil), India’s first and largest asset reconstruction company.
3. Answer - Option C
Explanation -
The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
4. Answer - Option C
Explanation -
A foreign company can access Indian securities market for raising funds through issue of Indian Depository Receipts (IDRs).
5. Answer - Option C
Explanation -
A Deep Discount Bond is a zero coupon bond whose maturity is very high.
6. Answer - Option D
Explanation -
State Bank of India raised ₹2,045 crore by issuing Basel III-compliant bonds. The bonds are debentures of face value of ₹10 lakh each bearing coupon of 9.37% per annum payable annually with a call option after 5 years.
7. Answer - Option D
Explanation -
Reserve Bank of India levied a penalty of Rs 1 crore on the State bank of India for not monitoring the end use of funds in respect of one of its borrowers, exercising of powers conferred under Section 47 A of the Banking Regulation Act, 1949.
8. Answer - Option D
Explanation -
RBI decided to transfer an interim surplus of Rs 28,000 crore to the central government for the half-year ended 31st Dec 2018. The decision has been based on a limited audit review and after applying the extant economic capital framework.
9. Answer - Option C
Explanation -
RBI caps funds raised via External Commercial Borrowing (ECB) at 6.5% of the country’s GDP. Based on the GDP figures for March 31, 2018 the soft limit works out to be $160 billion. Outstanding stock of ECB as on September 30 [latex]^{2}[/latex], 2018 was $126.29 billion.
10. Answer - Option E
Explanation -
As per Moody’s report, Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020. In 2018-19 fiscal Indian economy is estimated to have grown 7%, lower than 7.2% in 2017-18.

LIC ADO Financial Awareness Quiz - Set 43

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:

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

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.

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.

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 _____________ .

8. Recently, RBI has raised the criteria for ‘Bulk Deposits’ for banks to _________ for providing more operational freedom to lenders.

9. Recently, the Reserve Bank of India has approved the proposal of ___________ for buying a 9.9% stake in Bandhan Bank.

10. Pradhan Mantri Shram-Yogi Maandhan was launched recently in Gujarat. What is the Project Outlay of the scheme?

Answers and Explanations
1. Answer - Option B
Explanation -
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 - Option C
Explanation -
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 - Option B
Explanation -
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 - Option B
Explanation -
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[latex]^{th}[/latex], 1917, with the photo of King George V. This was the time when India was under the British rule.
5. Answer - Option D
Explanation -
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 - Option C
Explanation -
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 - Option A
Explanation -
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 - Option B
Explanation -
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 - Option A
Explanation -
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 - Option C
Explanation -
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.

LIC ADO Financial Awareness Quiz - Set 44

1. A/An ______ is a business professional who deals with the financial impact of risk and uncertainty.

2. The GST Council has reduced the tax on under construction residential properties to how much per cent?

3. If a cheque is presented for payment after three months the date mentioned in the cheque, this type of cheque is known as:

4. Which of the following is an unsecured money market instrument issued in the form of a promissory note?

5. What is term used for a series of payments made at fixed intervals of time, primarily used as a means of securing a steady cash flow for an individual during their retirement years?

6. IDBI Bank has launched which paperless account opening facility for NRIs residing in Financial Action Task Force (FATF) member countries?

7. Which company has recently acquired chatbot making startup firm “Haptik” for Rs.700 crores?

8. World Bank has announced to grant what amount for ‘National Rural Economic Transformation Project (NRETP)’ of India?

9. Reserve Bank of India (RBI) has formalized USD 75-billion currency swap agreement with which country recently?

10. Central Statistical Office (CSO) has revised India’s GDP (Gross Domestic Product) growth forecast recently for the 2018-19. What is the revised GDP rate?

Answers and Explanations
1. Answer - Option A
Explanation -
An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries assemble and examine data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disability, or loss of property.
2. Answer - Option D
Explanation -

On 24[latex]^{th}[/latex] 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[latex]^{st}[/latex] 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 - Option C
Explanation -

Anti-dated cheque is the type of cheque on which the mentioned date is of earlier than the date on which it is presented for payment. This cheque is valid for three month from the date of issue.

Post dated cheque is the type of cheque on which the mentioned date is yet to come on which it is presented for payment.

A cheque is valid for three months. If a cheque is presented for payment after this period of three months, it is then called a ‘stale cheque’.

Bearer cheque is the type cheque, the holder person can withdraw the money i.e anyone who present can withdraw the amount.

When we draw two parallel line on corner of cheque it referred to as crossed cheque. By using a crossed cheque one can make sure that the amount specified cannot be encashed but can only be credited to payee’s bank account.

4. Answer - Option D
Explanation -
Commercial Paper- Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP.
5. Answer - Option B
Explanation -
An annuity is a plan that helps you to get a regular payment for life after making a lump sum investment. The life insurance company invests the money of the investor and pays back the returns generated from it.
6. Answer - Option B
Explanation -
IDBI Bank has launched ‘NRI-Insta Online’ account opening process for NRIs residing in Financial Action Task Force (FATF) member countries to open an account in the Bank without visiting the branch or submitting paper documents such as physical documents as well as KYC proofs. This online facility is available in IDBI Bank’s website.
7. Answer - Option D
Explanation -
Reliance Jio Digital, a subsidiary of Reliance Industries has acquired a chatbot making startup firm Haptik for Rs.700 crores.
8. Answer - Option B
Explanation -
In order to provide a boost to rural income across 13 states on India, World Bank shall provide $250 million support to the National Rural Economic Transformation Project (NRETP). The agreement was signed between the World Bank and Government of India.
9. Answer - Option D
Explanation -
The Reserve Bank of India (RBI) and the Bank of Japan formalised the USD 75- billion swap agreement, which would act as a cushion against any sharp swings in the local currency whenever the international financial markets turn volatile. The proposal for entering into an agreement for the bilateral swap arrangement was approved by the Union Cabinet in January 2019.
10. Answer - Option D
Explanation -
On 31[latex]^{st}[/latex] January 2019, the Central Statistical Office (CSO), Ministry of Statistics and Programme implementation has revised the GDP (Gross Domestic Product) Growth forecast to 7.2% from earlier estimate of 6.7%.The GDP growth rate at current prices also called Nominal GDP growth rate has been revised to 11.3% to 10% for 2017-18. The actual growth rate for 2016-17 has also been revised to 8.2% from the earlier estimate of 7.1% by the CSO.

LIC ADO Financial Awareness Quiz - Set 45

1. A Saving account or Current account is classified as ‘Inoperative’ or ‘Dormant’ if there are no transactions in the account for over a period of ___ years.

2. Which type of money market instrument is a short term debt instrument issued by Government of India and are presently issued in three tenors?

3. Collateralized Borrowings & Lending Obligation (CBLO) is a type of money market instrument operated by which of the following?

4. Treasury bills are sold in India which of the following –

5. In 2010, Government of India, in consultation with RBI introduced a new short term instrument to meet the temporary mismatch in cash flow of the Government of India. The name of this money market instrument is ___

6. The Reserve Bank sets the average base rates of NBFC-MFI. It is;

7. The Reserve Bank of India, RBI will inject long-term liquidity worth ___________ US Dollars into the banking system.

8. The Asian Development Bank downgraded economic growth forecasts to_____________ from 7.6 percent for India.

9. Direct tax collections have fallen short by ________-thereby failing to meet the revised target of Rs 12 lakh crore for 2018-19.

10. World Bank to provide ____________ for the National Rural Economic Transformation Project (NRETP) to boost Rural Incomes across 13 States in India.

Answers and Explanations
1. Answer - Option D
Explanation -
RBI has stipulated that a saving/current account will be classified as an inoperative/dormant if there is no operation in the account for over a period of two years. Interest credited by the bank on the balance in the account and any charges debited by the bank is not considered as transaction for this purpose.
2. Answer - Option D
Explanation -
Treasury Bills are short term (up to one year) borrowing instruments of the Government of India which enable investors to park their short term surplus funds while reducing their market risk. They are auctioned by Reserve Bank of India at regular intervals and issued at a discount to face value. Treasury bills are presently issued in three maturities, 91 day / 182 day / 364 day.
3. Answer - Option C
Explanation -
The Collateralized Borrowing & Lending Obligation (CBLO) market is a money market segment operated by the Clearing Corporation of India Ltd. (CCIL)
4. Answer - Option C
Explanation -
Treasury bills are issued by Government of India and sold by Reserve Bank of India to banks.
5. Answer - Option A
Explanation -
In 2010, Government of India, in consultation with RBI introduced a new short term instrument to meet the temporary mismatch in cash flow of the Government of India called Cash Management Bills (CMB).
6. Answer - Option B
Explanation -
The Reserve Bank set the average base rate to be charged from borrowers by non-banking financial companies (NBFCs) and microfinance institutions (MFIs) at 9.21% for the first quarter of the next fiscal (April-June). The regulator in February 2014 had issued directions to NBFC-MFIs regarding pricing of credit.
7. Answer - Option D
Explanation -
The Reserve Bank of India, RBI said it will inject long-term liquidity worth 5 billion US Dollars into the banking system through a dollarrupee buy-sell swap for a tenure of three years on April 23. The RBI statement stated that the move intends to meet the durable liquidity needs of the system.
8. Answer - Option A
Explanation -
The Asian Development Bank downgraded economic growth forecasts for India and Southeast Asia for 2019 as global risks from trade tensions to Brexit mount. Gross domestic product in India will probably increase 7.2 percent this year, down from a December forecast of 7.6 percent, according to the ADB’s latest Asian Development Outlook report.
9. Answer - Option D
Explanation -
Direct tax collections have fallen short by Rs 50,000 crore thereby failing to meet the revised target of Rs 12 lakh crore for 2018-19 fiscal on account of poor personal income tax collections. The target of personal income tax of Rs 5.29 lakh crore was not met by almost the same shortfall amount of Rs 50,000 crore, which dragged down the direct tax collections for the fiscal 2018-19.
10. Answer - Option C
Explanation -
World Bank to provide 250 Million dollar for the National Rural Economic Transformation Project (NRETP) to boost Rural Incomes across 13 States in India.

LIC ADO Financial Awareness Quiz - Set 46

1.Certiﬁcate of Deposit (CD) is a _____ instrument.

2. The objective of the Capital market operations is ___

3. A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded is known as __________

4. Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?

E. To protect the interests of investors in securities market

5. ) The amount to be paid to the holder of a financial obligation at the obligation’s maturity is known as _________.

6. How much percent of life insurer’s premium income was grown for the year 2019, as per Insurance Regulatory and Development Authority of India (IRDAI)?

7. Which among the following infrastructure major has bagged orders worth nearly Rs. 2,360 Crore for rural development projects?

8. As per the report by the World Bank, India’s power sector has an efficiency gap that costs the Indian economy about __________ of GDP per year.

9. In February 2019, the Reserve Bank of India has doubled the limit for ‘Bulk Deposits’ to __________.

10. The Reserve Bank of India will infuse Rs ________ crore into the banking system through Open Market Operations in 2019.

Answers and Explanations
1. Answer - Option C
Explanation -
Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period.
2. Answer - Option A
Explanation -
The Capital market in India mainly operates through its two apex stock exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Its objective is to raise funds from public and put the investor’s wealth to productive long -term use. It is used for long-term credit. In Capital market borrowing and lending of money takes place for more than 1 years.Composition of Capital Market- It is mainly divided into three categories a) Securities Market b) Development Financial Institutions Financial Intermediaries
3. Answer - Option A
Explanation -
A segment of the financial market in which financial instrument with high liquidity and very short maturities are traded. Some of the money market instruments are treasury bill etc
4. Answer - Option B
Explanation -
Underwriting new Capital Issues is not a function of the Securities and Exchange Board of India (SEBI). As the name suggests, the main focus of this function of SEBI is to protect the interest of investor and security of their investment. The various functions of SEBI are: To protect the int
5. Answer - Option C
Explanation -
Maturity value is the amount payable to an investor at the end of a debt instrument’s holding period (maturity date). For most bonds, the maturity value is the face amount of the bond.For some certificates of deposit (CD) and other investments, all of the interest is paid at maturity.
6. Answer - Option D
Explanation -
11 percent of life insurer’s premium income was grown for the year 2019, as per Insurance Regulatory and Development Authority of India (IRDAI)
7. Answer - Option A
Explanation -
The construction arm of infrastructure major Larsen and Toubro (L&T) has bagged orders worth nearly Rs. 2,360 Crore for rural development projects. L&T’s Water and Effluent Treatment and Transportation Infrastructure Business have secured order worth Rs. 1,281 Crore from the Andhra Pradesh Capital Region Development Authority (AP CRDA).Another turnkey order worth Rs. 1,076 Crore has been secured by Water and Effluent Treatment Business from the Madhya Pradesh Jal Nigam Maryadit (MPJNM) for the execution of multi village rural water supply schemes in Jabalpur, Narsinghpur, Seoni and Damoh districts of Madhya Pradesh
8. Answer - Option B
Explanation -
According to the report titled ‘In the Dark: How Much Do Power Sector Distortions Cost South Asia’ by the World Bank, India’s power sector has an efficiency gap that costs the Indian economy about 4% of GDP a year which is equivalent to $86 billion in the fiscal year 2016. The report analyzed the overall societal costs – instead of just the fiscal costs – of subsidies, blackouts and other distortions in the power sector.9
9. Answer - Option C
Explanation -
Reserve Bank of India has doubled the limit for bulk deposits from ₹ 1 Crore to ₹ 2 Crore.This would enhance the operational freedom of banks. Commercial banks offer a lower rate of interest on bulk deposits.Banks would maintain their bulk deposit interest rate cards in the core banking system for supervisory review
10. Answer - Option D
Explanation -
The Reserve Bank of India (RBI) will infuse Rs 25,000 crore into the banking system through Open Market Operations (OMO). The RBI will conduct purchase of government securities through multi-security auction using the multiple price method. The decision on OMO is based on review of the evolving liquidity conditions in the banking system.

LIC ADO Financial Awareness Quiz - Set 47

1. In Notice Money Market, the tenor of the transactions is from ________

2. ___________ is a voluntary market body for the bond, money and derivatives markets

3. If the claim is exceeding ___________ claims can be settled by legal evidence that is by probate of will or succession certificate in Post Office Saving Schemes?

4. ‘Shishu’, ‘Kishore’ and ‘Tarun’ are associated with

5. National Income Estimate is prepared by ______

6. What is the Bank Rate, according to first Bi-monthly Monetary Policy statement for 2019-20

7. The farmers pursuing the activities of animal husbandry and fisheries availing long through Kisan Credit Card will be provided with the benefit of ___ interest subvention.

8. Which district court has become the first in India to accept e-payments?

9. In the event of death of a labourer during service, the amount to be paid by EPFO has been enhanced from Rs. 2.5 lakh to Rs. ____.

10. Under the PradhanMantriShram Yogi Maan-Dhan scheme, Workers of the unorganised sector will receive how much Rupees pensions after attaining the age of 60 years?

Answers and Explanations

1. Answer -

Explanation -

2. Answer -

Explanation -

3. Answer -

Explanation -

4. Answer -

Explanation -

5. Answer -

Explanation -

6. Answer -

Explanation -

7. Answer -

Explanation -

8. Answer -

Explanation -

9. Answer -

Explanation -

10. Answer -

Explanation -

LIC ADO Financial Awareness Quiz - Set 48

1. What is the Paid-up Share Capital of Agriculture Insurance Company of India?

2. Which of the following statements in context of Treasury bills (T- Bills) is not correct?

3. Which of the following not a function of Reserve Bank of India?

4.In which of the following years Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI?

5. Which of the following terms is used to define rise in the price of a security or in the value of one currency in terms of another?

6. Recently launched LIC’s Micro Bachat plan provides the maximum coverage up to ___________.

7. In March 2019, ICICI Lombard partnered with ____________ to offer cyber-insurance cover of ₹ 50000 for protection against the online frauds.

8. In the first half of FY20, Government is set to raise Rs ______ lakh crore through gilts i.e. instruments issued by the government to borrow money from the marke

9. The Reserve Bank of India recently, came out with guidelines for banks to set up new currency chests. As per RBI norms the currency chests should have CBL of ₹_______ crore.

10. In order to remain under FPI category, Portfolio Investment by any single investor or investor group should not exceed ________% of the equity of an Indian company

Answers and Explanations
1. Answer - Option A
Explanation -
The paid- up share capital of Agriculture Insurance Company of India is Rs. 200 crores, while the Authorised Share Capital – Rs. 1500 Crores. It was incorporated in 20th December 2002 and commenced operations on 1st April 2003.
2. Answer - Option C
Explanation -
T-bills auctions are held at the Reserve Bank of India, Mumbai. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are useful in managing short-term liquidity. At present, the Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day.
3. Answer - Option C
Explanation -
SEBI approves rules and laws pertaining to the stock exchanges.To protect the rights of investors and ensuring safety to their investment.To prevent fraudulent and malpractices by having balance between self-regulation of business and its statutory regulations.To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.
4. Answer - Option A
Explanation -
In the year 2015, Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI. The merger was precipitated with the National Spot Exchange Ltd. scam,which involved a payment crisis of more than Rs. 5000 crore. This was considered a regulatory failure by the FMC.
5. Answer - Option A
Explanation -
Appreciation is a rise in the price of a security or in the value of one currency in terms of another. It is Increase in the value of an asset which is in excess of the asset’s depreciable cost and is due to economic and other factors (such as scarcity or inflation) and not due to additions or improvements made to it.
6. Answer - Option D
Explanation -
LIC’s Micro Bachat was recently, launched which provide coverage up to ₹ 2 lakh. The minimum basic sum assured is ₹ 50,000.It is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings.It provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholders.
7. Answer - Option C
Explanation -
ICICI Lombard General Insurance and Mobikwik have partnered to offer cyber-insurance cover of ₹ 50000 for protection against online frauds. It aims to provide protection against unauthorized and fraudulent transactions online, across bank accounts, debit/credit cards and mobile wallets. The cyber-insurance can be availed digitally through an app at only ₹ 99 per month and with a sum insured of ₹ 50000.
8. Answer - Option A
Explanation -
Government is set to raise Rs 4.42 lakh crore through gilts in the first half of FY20. The borrowing for the second half is set at Rs 2.68 lakh crore. The Centre will auction Rs 17,000 crore of gilts per week during April-September.
9. Answer - Option B
Explanation -
RBI appointed committee recommended that RBI should encourage banks to open large currency chests with modern facilities and Chest Balance Limit (CBL) of at least ₹1,000 crore.As per the recommendation currency chests should have CBL of ₹1,000 crore, subject to ground realities and reasonable restrictions, at the discretion of the Reserve Bank
10. Answer - Option B
Explanation -
Portfolio Investment by any single investor or investor group should not exceed 10% of the equity of an Indian company, beyond which it is treated as FDI. Foreign Portfolio Investor(FPI) stands for those investors who hold a short-term view on the company, in contrast to Foreign Direct Investors (FDI).

LIC ADO Financial Awareness Quiz - Set 49

1.An emerging market economy is highly classified with relatively- one in which the country is becoming a developed nation and is determined through many socio________

2.Depositor Education and Awareness Fund (DEAF) is maintained by which of the following?

3.Indian Financial System Code consists of how many alphanumeric digit?

4. For which of the following debt instruments, not having a fixed rate of interest over the life of the instrument, can ‘Floating Interest Rate’ be applied?

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

6. How much total liquidity has been injected by the Reserve Bank of India (RBI) in the market in 2018-19?

7.Who has become the first lender to charge for UPI (Unified Payments Interface) use?

8. ) Fiscal deficit is pegged at ______ per cent of GDP in the Interim Budget 2019-20.

9. The GST Council allowed the filing of GST returns with an annual turnover of up to Rs. 5 crore _____.

10. National Pension Scheme (NPS) is a government-sponsored pension scheme which was launched in 2004 for government employees. The Government has decided to raise its contribution in NPS from 10% to _________

Answers and Explanations
1. Answer - Option A
Explanation -
An emerging market economy is highly classified with relatively – one in which the country is becoming a developed nation and is determined through many socio- economic factors
2. Answer - Option B
Explanation -
Depositor Education and Awareness Fund (DEAF) Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank. All banks are required to transfer money lying in accounts that have been inoperative for at least 10 years to the DEAF according to specific guidelines.
3. Answer - Option B
Explanation -
IFSC is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero) and reserved for future use. Bank IFS Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches.The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India.
4. Answer - Option E
Explanation -
An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement.A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
5. Answer - Option B
Explanation -
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.
6. Answer - Option A
Explanation -
The Reserve Bank of India (RBI) injected a total liquidity of Rs 2.98 lakh crore in the market in 2018-19. Liquidity is a measure of the ability of a debtor to pay their debts as and when they fall due.
7. Answer - Option D
Explanation -
Kotak Mahindra Bank becomes the first lender to Charge for UPI Use.For each Kotak Bank account, the first 30 UPI fund transfers will be free, after which a charge will be levied on all fund transfers from the bank account.
Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions.
8. Answer - Option C
Explanation -
The fiscal deficit of year 2019-20 is pegged at 3.4% of GDP. However, considering the need for income support to farmers Rs. 20,000 crore was provided in 2018-19 RE and Rs.75,000 crore in 2019-20 BE. If this is excluded, the fiscal deficit would have been less than 3.3% for 2018-19 and less than 3.1% for year 2019-20.
9. Answer - Option c
Explanation -
The GST Council allowed the filing of GST returns with an annual turnover of up to Rs. 5 crore is Quarterly.
10. Answer - Option d
Explanation -
National Pension Scheme (NPS) is a government-sponsored pension scheme which was launched in 2004 for government employees. The Government has decided to raise its contribution in NPS from 10% t0 14%.Under the NPS, the subscriber is eligible to withdraw 60 per cent of the corpus. The remaining 40% of the accumulated fund goes towards annuity.Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60 per cent, the minister said, adding the entire withdrawal will now be exempt from income tax. Out of 60 per cent of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40 per cent is tax exempt and balance 20 per cent is taxable.

LIC ADO Financial Awareness Quiz - Set 50

1.Which of the following is not a feature of gilt edged securities?

2. The market price of a share of common stock is determined by:

3.When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as

4. If Indian govt. decides the level of Rupee to be 57 from 55 against 1 dollar, it is called ________.

5.Which of the following statement is/are correct regarding the MCLR?

6.The government of India has doubled the monetary limit to _________________ rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT)by banks and financial institutions.

7.The National Green Tribunal imposed a cost of Rs. 25 lakh on the which state government for failing to stop dumping of sewage and untreated water in the Ganga Canal.

8. What was the volume of priority sector lending certificates (PSLCs) in the financial year 2018-19?

9.Union Cabinet approved the establishment of a New Greenfield Airport at which of the following city in an estimated cost of Rs. 1405 crore?

10. Which among the following bank launches paperless account facility for NRIs?

Answers and Explanations
1. Answer - Option A
Explanation -
These securities are usually referred to as ‘gilt-edged’ securities as repayments of principal as well as interest are totally secured, being the first charge on the nation’s purse. Hence the Central Government securities are considered as safest claims
2. Answer - Option D
Explanation -
The market price of a share of common stock is determined by the market forces ie. Individuals buying and selling the stock.
3. Answer - Option A
Explanation -
Misselling is a significant problem in financial services industry and for financial industry regulators. Brokers, financial advisors, bank representatives or other salespeople of financial products or services who are compensated based on commissions may have significant incentives to sell investments or investment products based on how much they can earn rather than what is suitable or what is needed by a customer. Misselling may occur with insurance products, annuities, investments, mortgages and a variety of other financial products. A financial loss is not necessarily required to meet the definition of misselling; the sale of an unsuitable product is enough.
4. Answer - Option B
Explanation -
Depreciation refers to a fall in the value of a currency due to market changes while devaluation signifies the deliberate reduction undertaken by a countries govt. to its own currency.
5. Answer - Option D
Explanation -
The marginal cost of funds-based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. a) It is an internal benchmark or reference rate for the bank. b) MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank. c) MCLR is decided on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower.
6. Answer - Option A
Explanation -
The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.As per the Finance Ministry, the move is aimed at helping reduce pendency of cases in DRTs.
7. Answer - Option A
Explanation -
The National Green Tribunal imposed a cost of Rs. 25 lakh on the Uttar Pradesh government for failing to stop dumping of sewage and untreated water in the Upper Ganga Canal.A bench headed by NGT Chairperson Justice Adarsh Kumar Goel directed the urban development ministry to deposit a performance guarantee of Rs. 35 lakh.
8. Answer - Option D
Explanation -
The priority sector lending certificates (PSLCs) volume rocketed to Rs. 3.3 trillion in FY19,up from Rs. 1.9 trillion in the last financial year and Rs. 50,000 crore in FY17. PSLCs are used to enable banks to achieve the priority sector lending target and sub-targets by purchasing these instruments in the event of shortfall. Those falling short of targets have the choice to place money with Nabard and Sidbi at low interest rates or invest in PSLCs issued by fellow lenders which carry higher coupon.
9. Answer - Option C
Explanation -
Union Cabinet approved the establishment of a New Greenfield Airport at Hirasar in Rajkot, Gujarat at an estimated cost of Rs. 1405 crore.Rajkot is the fourth largest city of Gujarat and existing airport of Rajkot is severely land constrained having only 236 acres of land. Therefore the decision to develop new airport was taken by cabinet.
10. Answer - Option D
Explanation -
The Non-Resident Indians (NRIs) living in nearly 40 countries will now be able to open account in IDBI Bank without submitting paper documents. IDBI Bank has launched ‘NRI-Insta Online’ account opening process for NRIs residing in Financial Action Task Force (FATF) member countries. The person will not be required to furnish physical documents as well as KYC proofs for opening an account with the bank.

LIC ADO Financial Awareness Quiz - Set 51

1.The Reserve Bank of India (RBI) has fined Rs 2 Crore, recently (March 2019), on which of the following bank for violating the regulatory directions regarding SWIFT operations?

2. What is the minimum size of issue and denominations of Certificates of Deposits (CD)?

3. The injection of money into a business or organization that is about to collapse is called _____.

4.SBI has recently linked interest rate applicable on savings account and short-term loans directly with which of the following rate?

5.What does ‘B’ stands for in FRBMA?

6.“Amber Box” is an important term used in international economy associated with which organization?

7. ‘IFSC’ is an 11-digit alpha-numeric code assigned by RBI to identify every bank branch participating in the payment system uniquely. What is the full form of IFSC?

8. What do you understand by term ‘Venture Capital’?

9. _______ is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears

10. ______is a temporary finance facility provided to Government of India by RBI to accommodate mismatch in the government’s receipts and payments.

Answers and Explanations
1. Answer - Option E
Explanation -
RBI has slapped Rs 2 Crore on Punjab National Bank (PNB) for non-compliance of regulatory directions with regard to SWIFT operations.SWIFT stands for the “Society for Worldwide Interbank Financial Telecommunications”. It is a messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes.
2. Answer - Option C
Explanation -
Minimum amount of a Certificates of Deposits should be Rs.1 lakh, i.e., the minimum deposit that could be accepted from a single subscriber should not be less than Rs.1 lakh and in multiples of Rs. 1 lakh thereafter.
3. Answer - Option B
Explanation -
A bailout is the act of a business, an individual or a government providing money and resources to a failing company. These actions help to prevent the consequences of that business’s potential downfall which may include bankruptcy and default on its financial obligations. Bailouts can be in the form of loans, bonds, stocks or cash.
4. Answer - Option B
Explanation -
SBI has linked interest rate applicable on savings account deposits over Rs. 1 lakh and short-term loans directly with Reserve Bank of India (RBI) repo rate from 1 May, 2019 with an aim to ensure faster monetary transmission. Interest rate will now change automatically every time the regulator (RBI) hikes or lowers its repo rate.
5. Answer - Option B
Explanation -
The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget and strengthen fiscal prudence.
6. Answer - Option E
Explanation -
In World Trade Organisation terminology, subsidies in agriculture and agricultural produce are identified by “Boxes”. The three boxes are; Amber, Blue and Green boxes. Amber box contains aid to be avoided and reduced by countries.
7. Answer - Option E
Explanation -
The Indian Financial System Code (or IFSC) is an 11-digit alpha-numeric code assigned by the Reserve Bank of India to identify every bank branch participating in the payment system uniquely.
8. Answer - Option D
Explanation -
Venture capital is financing that investors provide to start up companies and small businesses that are believed to have long-term growth potential.
9. Answer - Option C
Explanation -
Hot Money is short term international capital movements, motivated by interest rate differential or revaluation hopes/devaluation fears
10. Answer - Option B
Explanation -
The Reserve Bank of India gives temporary loan facilities to the centre and state governments as a banker to government. This temporary loan facility is called Ways and Means Advances (WMA)

LIC ADO Financial Awareness Quiz - Set 52

1. Which of the following statements in context of Treasury bills (T- Bills) is not correct?

2. Which of the following not a function of Reserve Bank of India?

3.In the first half of FY20, Government is set to raise Rs ______ lakh crore through gilts i.e. instruments issued by the government to borrow money from the marke

4. The Reserve Bank of India recently, came out with guidelines for banks to set up new currency chests. As per RBI norms the currency chests should have CBL of ₹_______ crore.

5. In which of the following years Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI?

6. Which of the following terms is used to define rise in the price of a security or in the value of one currency in terms of another?

7. Cash Management Bills (CMBs) are issued for maturities less than ________days.

8. STRIPS are the securities created by way of separating the cash flows associated with a regular G-Sec. ‘I’ in STRIPS stands for__________.

9. __________refers to the percentage rate of return paid on a stock in the form of dividends

10. SIP allows us to invest regularly a fixed sum in our favourite mutual fund scheme/s. It stands for______.

Answers and Explanations
1. Answer - Option C
Explanation -
T-bills auctions are held at the Reserve Bank of India, Mumbai. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are useful in managing short-term liquidity. At present, the Government of India issues four types of treasury bills, namely, 14-days, 91-days, 182-days and 364-days.
2. Answer - Option C
Explanation -
SEBI approves rules and laws pertaining to the stock exchanges.
To protect the rights of investors and ensuring safety to their investment.To prevent fraudulent and malpractices by having balance between self-regulation of business and its statutory regulations.To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.
3. Answer - Option A
Explanation -
Government is set to raise Rs 4.42 lakh crore through gilts in the first half of FY20. The borrowing for the second half is set at Rs 2.68 lakh crore. The Centre will auction Rs 17,000 crore of gilts per week during April-September
4. Answer - Option B
Explanation -
RBI appointed committee recommended that RBI should encourage banks to open large currency chests with modern facilities and Chest Balance Limit (CBL) of at least ₹1,000 crore.As per the recommendation currency chests should have CBL of ₹1,000 crore, subject to ground realities and reasonable restrictions, at the discretion of the Reserve Bank.
5. Answer - Option A
Explanation -
In the year 2015, Forward Markets Commission (FMC) merged with the capital markets watchdog SEBI. The merger was precipitated with the National Spot Exchange Ltd. scam,which involved a payment crisis of more than Rs. 5000 crore. This was considered a regulatory failure by the FMC.
6. Answer - Option A
Explanation -
Appreciation is a rise in the price of a security or in the value of one currency in terms of another. It is Increase in the value of an asset which is in excess of the asset’s depreciable cost and is due to economic and other factors (such as scarcity or inflation) and not due to additions or improvements made to it.
7. Answer - Option B
Explanation -
To meet the temporary mismatches in the cash flow of the Government of India .Government of India, in consultation with RBI introduced a new short-term instrument, known as Cash Management Bills (CMBs), The CMBs have the generic character of T-bills but are issued for maturities less than 91 days
8. Answer - Option A
Explanation -
STRIPS is an acronym for Separate Trading of Registered Interest and Principal of Securities. They are the securities created by way of separating the cash flows associated with a regular G-Sec i.e. each semi-annual coupon payment and the final principal payment to be received from the issuer, into separate securities. They are essentially Zero-Coupon Bonds(ZCBs).
9. Answer - Option D
Explanation -
Yield refers to the percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note. There are many different kinds of yields depending on the investment scenario and the characteristics of the investment.Yield To Maturity (YTM) is the most popular measure of yield in the Debt Markets and is the percentage rate of return paid on a bond, note or other fixed income security if you buy and hold the security till its maturity date.Current Yield is the coupon divided by the Market Price and gives a fair approximation of the present yield.
10. Answer - Option E
Explanation -
SIP is an acronym for Systematic Investment Plan. It is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows an investor to buy units regularly on a specific date of the month. It is a planned approach towards investments.

LIC ADO Financial Awareness Quiz - Set 53

1. Under SARFAESI Act, to serve the purpose of Asset reconstruction a company registered under ____________ of the SARFAESI Act 2002 comes into action

2. Which of the following is/are a feature of Close – ended Mutual Fund scheme?

3. Owners of ______________ are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly

4. In reference to secondary capital market, what does ‘P’ in MAPIN stands for?

5.Which of the following is a financial instrument that pays no interest while the investor holds it?

6. As per the latest ADB estimates, India’s GDP growth forecast will be ___________ for 2019 -2020.

7.7) The Insolvency and Bankruptcy Board of India (IBBI) signed a MoU with ______ for implementation of the IBC, 2016 (Code).

8. Under Pradhan Mantri Fasal Bima Yojana (PMFBY), what is the premium charged for Kharif crops?

9.Which is the largest fintech lending platform as per a report Credit Suisse?

10.) Which of the following countries recently, launched the world’s first sovereign blue bond i.e. a pioneering financial instrument designed to support sustainable marine and fisheries projects?

Answers and Explanations
1. Answer - Option B
Explanation -
To serve the purpose of Asset reconstruction a company registered under Section 3 of the Securitization & Reconstruction of financial assets & Enforcement of security interest (SARFAESI) Act 2002 comes into action. Asset reconstruction means the acquisition by any securitization company or reconstruction company of any right or interest of any bank or financial institution in any financial assistance for the purpose of realization of such financial assistance.
2. Answer - Option B
Explanation -
A close-ended fund or scheme has a stipulated maturity period e.g. 3-5 years. The fund is open for subscription only during a specified period at the time of launch of the scheme.Investors can invest in the scheme at the time of the new fund offer. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. In case of an Open-ended Mutual fund scheme; investors can conveniently buy and sell units at Net Asset Value (NAV) per unit which is declared on a daily basis.
3. Answer - Option B
Explanation -
Owners of Preference shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the company’s creditors, bondholders / debenture holders.
4. Answer - Option B
Explanation -
MAPIN (Market Participant Identification Number) is the Market Participants and Investors Integrated Database. The SEBI (Central Database of Market Participants) Regulations,2003 were notified on November 20, 2003 under which, all the participants in the Indian Securities Market viz., SEBI registered intermediaries, listed companies and their associates and the investors were required to obtain a Unique Identification Number (UIN) in order to enable the regulator to establish the identity of person(s).
5. Answer - Option E
Explanation -
A Zero-coupon bond does not pay any interest payments to the bondholder. It is sold originally at a substantial discount from its eventual maturity value, paying the investor its full-face value when it comes due, with the difference between what he paid initially and what he finally collected representing the interest he would have received over the years it was held.
6. Answer - Option C
Explanation -
The Asian Development Bank (ADB) has cut its India GDP growth forecast for 2019-20 to 7.2%. ADB had estimated 7.6% economic growth earlier. ADB is the first multilateral lending agency to slash India’s growth estimate.ADB HQ- Mandaluyong, Philippines President- Takehiko Nakao
7. Answer - Option D
Explanation -
The Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) for implementation of the Insolvency and Bankruptcy Code, 2016 (Code) and its allied rules and regulations
8. Answer - Option C
Explanation -
8) Answer: c) Under Pradhan Mantri Fasal Bima Yojana (PMFBY), there will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In the case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.The balance premium will be paid by the Government to provide the full insured amount to the farmers against crop loss on account of natural calamities
9. Answer - Option E
Explanation -
Web portal PSBloansin59minutes.com launched recently emerged as the largest online lending platform, according to a report by global financial firm Credit Suisse. It provides a credit of up to Rs 1 crore to MSMEs in just 59 minutes. PSBloansin59minutes.com was launched by PM Narendra Modi.
10. Answer - Option C
Explanation -
Seychelles launched the world’s first sovereign blue bond – a pioneering financial instrument designed to support sustainable marine and fisheries projects. It raised US$15 million from international investors & demonstrates the potential for countries to harness capital markets for financing the sustainable use of marine resources.

LIC ADO Financial Awareness Quiz - Set 54

1.In the world of financial market, what does “Offer Document” means among the following?

2. Which of the following financial institutions compiles the system of national accounts which aim at measuring GDP as per International Standards?

3. Ministry of Finance publishes the Annual FII to help in macro policy formulation. What is ‘F’ in FII?

4. Who among the following can be called as a ‘Qualified Institutional Buyer’?

5. IFSD is given for leasing a commercial property, what does ‘S’ mean in IFSD?

6. The Government of India has risen for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions to ___.

7. As per the 2019 Global Economics Prospect released in Washington, what is India’s GDP growth forecast for FY 2018-19?

8. According to the latest report of RBI, banks recovered how much money from the bad loans in the fiscal which ended in March 2018?

9.As per the Interim Budget 2019-20, Individual tax payers with taxable income of up to what amount will get full tax rebate?

10. What is the current repo rate, according to first Bi-monthly Monetary Policy statement for 2019-20?

Answers and Explanations
1. Answer - Option E
Explanation -
Offer document” means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue, which is filed Registrar of Companies (ROC) and Stock Exchanges An offer document covers all the relevant information to help an investor to make his/her investment decision. “Draft Offer document” means the offer document in draft stage. The draft offer documents are filed with SEBI, at least 21 days prior to the filing of the Offer Document with ROC/ SEs.
2. Answer - Option B
Explanation -
The System of National Accounts (SNA) is compiled by International Monetary Fund (IMF). It is the internationally agreed standard set of recommendations on how to compile measures of economic activity consequently; the national accounts are one of the building blocks of macroeconomic statistics forming a basis for economic analysis and policy formulation
3. Answer - Option C
Explanation -
Ministry of Finance publishes the Annual Financial Inclusion Index (FII) that measure the access and usage of a basket of formal financial products and services. The single composite index will guide the macro policy formulation. The Union Minister of Finance and Corporate Affairs, Arun Jaitley launched the Financial Inclusion Index in New Delhi.
4. Answer - Option E
Explanation -
Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets. – Public financial institution as defined in section 4A of the Companies Act, 1956; – Scheduled commercial banks – Foreign institutional investor registered with SEBI – Venture capital funds registered with SEBI.
5. Answer - Option B
Explanation -
The acronym of IFSD is Interest Free Security Deposit. The interest free security deposits lying with Exchange/Clearing Corporation shall be refunded to the members of Stock Exchange after three years from the date of issue of public notification or on receipt of confirmation from SEBI regarding cancellation of registration whichever is later.
6. Answer - Option D
Explanation -
The Union government doubled the pecuniary limit to Rs. 20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce pendency of such cases. As a result, any bank or financial institution or a consortium of banks or financial institutions cannot approach DRTs if the amount due is less than Rs 20 lakh.
7. Answer - Option C
Explanation -
In its 2019 Global Economics Prospect released in Washington, The World Bank has projected India’s growth rate at 7.3% in the fiscal year 2018-19 and average 7.5% in 2019 and 2020.Goods and Services Tax (GST) and demonetisation are expected to encourage a shift from the informal to the formal sector.India has enormous growth potential compared to other emerging economies as an ambitious government undertakes comprehensive reforms.
8. Answer - Option D
Explanation -
According to the latest report of RBI, banks recovered Rs 40,400 crores worth bad loans in the fiscal which ended in March 2018.Banks saw a significant improvement in the recovery of stressed assets after the amendments in the SARFAESI Act.Bad loans are the loans given to debtors which are unlikely to come back to creditors. In these cases, the money given does not come back and creditor loses all his money.
9. Answer - Option B
Explanation -
Individual tax payers with taxable income of up to Rs 5 lakh will get full tax rebate from now on. Those earning Rs 6.5 lakh will not have to pay tax, if they invested in specified savings such as PF, PPF, etc.
10. Answer - Option B
Explanation -
The Reserve Bank of India in its First Bi-monthly Monetary Policy Statement, 2019-20 has reduced the Repo Rate by 25 basis points to 6.0 per cent from 6.25 per cent. Repo Rate is the rate at which RBI lends money to commercial banks.

LIC ADO Financial Awareness Quiz - Set 55

1. Planning for Retirement Saving is a type of

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

3. Demand draft is a negotiable instrument issued by a certain bank that directs the other bank or one of its own branches to pay a certain sum of money to the payee. A demand draft in which the payment is made only after the speciﬁed period is known as ____.

4.RBI is the lender of the last resort. It means _________.

5. What is the maximum limit for a loan under the Tarun scheme of Mudra Bank loan Yojana?

6.Which of the following banks has extended the Rs 4,100 crore loan for Visakhapatnam (VIZAG) Metro Rail project in Andhra Pradesh

7. As per the Interim Budget 2019-20, how much amount has already been recovered in favour of banks and creditors?

8. Which app launched for mutual fund investments, SIPs begin at Rs 100?

9. The Reserve Bank of India (RBI) has put into circulation which denomination banknotes signed by its Governor Shaktikanta Das?

10.) Which of the following banks has sanctioned loans worth Rs 689 crore to over 1,600 Micro, Small and Medium Enterprises (MSMEs)?

Answers and Explanations
1. Answer - Option D
Explanation -
Planning for Retirement Saving is a type of Financial Planning.
2. Answer - Option
Explanation -

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.

3. Answer - Option C
Explanation -
Time Draft – The type of demand draft in which the payment is made only after a speciﬁed period. Demand draft is a negotiable instrument issued by a certain bank that directs the other bank or one of its own branches to pay a certain sum of money to the payee.
4. Answer - Option C
Explanation -
A lender of last resort is an institution, usually a country’s central bank that oﬀers loans to banks or other eligible institutions against eligible securities that are experiencing ﬁnancial diﬃculty or are considered highly risky or near collapse.
5. Answer - Option C
Explanation -
Maximum limit of tarun under mudra bank loan yojana is 10 Lakhs. The scheme is further classiﬁed into three categories namely Shishu, Kishor and Tarun. Shishu scheme- This is the category that is required by most startups. This category is suitable for those who are about to start their business and they require a ﬁnancial support. They can avail a loan of up to Rs. 50,000. Kishor scheme- This is meant for those who have already started their business, but they require the money for getting established. Such units can avail a loan of Rs. 50,000 up to Rs. 5 lakhs. Tarun scheme- Those businesses which are already established and they are completely set up, but they require some ﬁnancial support so that they can continue their business as it is. These business units can avail a loan of up to Rs. 10 lakh.
6. Answer - Option C
Explanation -
Korea Exim Bank has extended a Rs 4,100 crore loan for Visakhapatnam (VIZAG) Metro Rail project. Vizag Metro is a planned rapid transit system in the Indian city of Visakhapatnam, Andhra Pradesh.
7. Answer - Option C
Explanation -
As per the Interim Budget 2019-20, an amount of close to Rs. 3 lakh crore has already been recovered in favour of banks and creditors. To restore the health of public sector banks, recapitalisation has been done with an investment of Rs. 2.6 lakh crore. Amalgamation of banks has also been done to reap the beneﬁts of economies of scale, improved access to capital and to cover a larger geographical spread.
8. Answer - Option A
Explanation -
Paytm Money app launched for mutual fund investments, SIPs begin at Rs 100.
9. Answer - Option D
Explanation -
The Reserve Bank of India (RBI) has put into circulation 50 rupees denomination banknotes signed by its Governor Shaktikanta Das. All banknotes in the denomination of 50 issued by the Reserve Bank in the past will continue to be legal tender.
10. Answer - Option D
<Explanation -
>Punjab National Bank (PNB) has sanctioned loans worth Rs 689 crore to over 1,600 Micro, Small and Medium Enterprises (MSMEs). It has sanctioned it through the ‘psbloansin59minutes.com’ portal as part of its eﬀort to promote such industries. Under the Mudra Yojana, the bank has oﬀered loan to over 2.69 lakh small entrepreneurs till February 14, 2019.

LIC ADO Financial Awareness Quiz - Set 56

1. Economic units whose consumption and planned investments are less than their income is known as?

2. Flow of Funds (FoF) accounting in India is done by?

3. Reserve Bank of India deals in call money market via ____

4. New Issues Market is also known as?

5. Application Supported by Blocked Amount (ASBA) is developed by ?

6. How much amount of fund was received by India from the Asian Development Bank (ADB) in terms of sovereign loans in the year 2018?

7. The government has infused how much crore Rupees in four public sector banks, including UCO Bank and Syndicate Bank recently?

8. In which bank the central government has infused Rs 3,076 crore of capital into it by way of preferential allotment recently?

9. The government has hiked the customs duty on wheat to _____ from_____ recently to curb imports and protect the domestic industry.

10. ____ and SBI Life Insurance signed a bancassurance pact aiming to offer a comprehensive financial planning solution to its customers.

Answers and Explanations
1. Answer - Option B
Explanation -
Surplus Spending Economic Unit – Economic units whose consumption and planned investments are less than their income
Deficit Spending Economic Unit – units whose consumption and planned investments exceeds income
2. Answer - Option C
Explanation -
Flow of funds accounts are used to track the flow of money to and from various sectors of a national economy. Flow of funds (FOF) accounts are collected and analyzed by a country’s central bank.
3. Answer - Option A
Explanation -
Call money market are tools for very short term funds like one day to fortnight. Repo auction is done by RBI for this short duration.
4. Answer - Option B
Explanation -
The primary market is a market for new issues and is also called the new issues market.
5. Answer - Option C
Explanation -
ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO.
6. Answer - Option B
Explanation -
India was the biggest recipient of funds from the Asian Development Bank (ADB) in the year 2018. The country received USD 3 billion in sovereign loans in 2018 from ADB.
7. Answer - Option A
Explanation -
The government has infused 10,882 crore Rupees in four public sector banks, including UCO Bank and Syndicate Bank. It is a part of 28,615 crore rupees capital infusion to be done in about half a dozen public sector lenders. UCO Bank has received 3,074 crore rupees in the equity by way of preferential allotment yesterday. Besides, Bank of Maharashtra got 4,498 crore rupees, Syndicate Bank 1,632 crore rupees and Central Bank of India 1,678 crore rupees.
8. Answer - Option B
Explanation -
State-run lender UCO Bank stated the central government has infused Rs 3,076 crore of capital into it by way of preferential allotment. The government “has conveyed its decision to invest Rs 3,074 crore in the equity of the Bank by way of preferential allotment and Bank has received the amount.
9. Answer - Option D
Explanation -
The government has hiked the customs duty on wheat to 40% from 30% to curb imports and protect the domestic industry.
10. Answer - Option C
Explanation -
Syndicate Bank and SBI Life Insurance signed a bancassurance pact aiming to offer a comprehensive financial planning solution to its customers. The pact was signed between Syndicate Bank MD & CEO, Mrutyunjay Mahapatra and MD and CEO of SBI Life, Sanjeev Nautiya

LIC ADO Financial Awareness Quiz - Set 57

1. RBI’s New Rules to Push another Rs ____ Loans into Insolvency stated Credit Suisse.

2. Commercial Paper (CP) is issued by___.

3. ‘Financial Inclusion’ is the powerful tool adopted by the Reserve Bank of India to fulfil the basic objective of

4. Reserves which can act as liquidity buffer for commercial banks during crisis times are

5. What would a clerk do if he finds that the amount written on a cheque, in words, and in digits is different?

6. How much amount has been allocated for ‘Pradhan Mantri Shram-Yogi Maandhan’ in the Interim Budget 2019-20?

7. According to data from IRDAI, Non-life insurance firms registered a rise of ________% in their collective premium income to Rs 1.70 lakh crore in March 2019.

8. Which public sector bank has become the first bank in the country that has linked its deposit accounts and short term loans to an external benchmark?

9. What is the growth projection of Asia-Pacific region in the year 2019, as per the Asian Development Bank?

10. Which bank has launched the 5$ billion Action Plan for Healthy Oceans and Sustainable Blue Economies for the Asia and Pacific region recently?

Answers and Explanations
1. Answer - Option A
Explanation -
Another Rs 1.5 trillion (or Rs 1.5 lakh crore) of non-performing assets are now likely to be with the National Company Law Tribunal in the next six months,” according to a Credit Suisse report on RBI’s new rules.
2. Answer - Option E
Explanation -
Commercial Paper (CP) is an unsecured money market instrument introduced in 1990 which are issued in the form of a promissory note. Corporate, Primary Dealers and All India Financial Institutions are eligible to issue CP.
3. Answer - Option B
Explanation -
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 - Option D
Explanation -
The RBI has mandated banks to set aside corporation of their deposits as statutory liquidity ratio (SLR) or the minimum amount it must hold in gold, cash or government bonds. In addition banks have to set aside a portion of their deposits as cash with the central bank, a requirement called the cash reserve ratio. These reserves can act as a liquidity buffer for banks during crisis time.
5. Answer - Option B
Explanation -
As per section 18 of Negotiable Instrument Act, 1881 where an amount is stated differently in figures and words in the cheque the banker will clear the cheque by taking in account, the amount stated in words to be the amount undertaken or ordered value to be paid to the customer.
6. Answer - Option C
Explanation -
The Government has proposed to launch a mega pension yojana ‘Pradhan Mantri Shram – Yogi Maandhan’ for the unorganised sector workers with monthly income upto Rs. 15,000. This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age. A sum of Rs. 500 crore has been allocated for the Scheme.
7. Answer - Option B
Explanation -
According to data from IRDAI, Non-life insurance firms registered a rise of 13% in their collective premium income to Rs 1.70 lakh crore in March 2019. The 34 non-life insurers had a gross premium of Rs 1.51 lakh crore in 2017-18. Among these insurers, as many as 25 are categorised as general insurers, seven private sector insurers while the rest of the two are government-owned insurers.
8. Answer - Option A
Explanation -
India’s largest bank State Bank of India (SBI) has moved to a new interest rate regime on large savings account deposits with balance above Rs 1 lakh as well as short-term loans like overdraft and cash credit. In March 2019, SBI has announced that it will link its interest rate on large savings account deposits and short term loans to RBI’s repo rate which would be effective from May 1, 2019.By this move, SBI became the first bank in the country which has linked deposit accounts and short term loans to an external benchmark.
Currently, repo rate is 6%. So according to external benchmarking formula, the large savings account with balance above Rs 1 lakh earn less interest rate as compare to small savings account. However, if the repo rate increases and goes above 6.25% then large savings account will earn more interest rate than small savings account.
9. Answer - Option D
Explanation -
According to Takehiko Nakao, President and Chairperson of Asian Development Bank, the Asia-Pacific region is supposed to grow at 5.7% in 2019 but the rising trade tensions might hinder its growth. ADB’s Asian Development Outlook 2019 report released in April states that developing Asia comprising of 45 countries is estimated to grow by 5.7% in 2019 (which is pointed out by Nakao).
10. Answer - Option D
Explanation -
Asian Development Bank (ADB) launched 5$ billion Action Plan for Healthy Oceans and Sustainable Blue Economies for the Asia and Pacific region. This will support ADB’s developing member countries’ efforts for achieving the Sustainable Development Goals (SDGs), inclusive of the SDG 14: Life below Water. Among the 10 rivers that transports 88% to 95% of plastics into the sea globally, 8 are in Asia and Pacific region.

LIC ADO Financial Awareness Quiz - Set 58

1. _____ is the value of all finished goods and services produced in a country in one year by its nationals.

2. The type of inflation which does not consider the inflation in food and fuel is known as?

3. In how many languages, the amount of a bank note is written on it?

4. Which one of the following is not a salient feature of debit card?

5. RBI is the lender of last resort which means _________.

6. In February 2019, the Ministry of Housing and Urban Affairs has issued guidelines to set up EV charging stations. It is expected __________ of total vehicles on roads would be EV by 2030.

7. As per the latest ADB estimates, India’s GDP growth forecast will be ___________ for 2019-2020

8. As per the new guidelines of RBI, the currency chests should have at least Chest Balance Limit (CBL) of __________.

9. In January 2019, the Union Cabinet approved capital infusion of _________ in Export-Import Bank of India through recapitalization bonds to boost the export financing.

10. Recently, Pradhan Mantri Shram Yogi Mandhan pension scheme was launched. What is the monthly contribution for the workers in the unorganized sector under the scheme?

Answers and Explanations
1. Answer - Option D
Explanation -
Gross national product (GNP) is a broad measure of a nation’s total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals.
2. Answer - Option B
Explanation -
Core inflation is also a term used to denote the extent of inflation in an economy. But Core inflation does not consider the inflation in food and fuel. This is a concept derived from headline inflation. There is no index for direct measurement of core inflation and now it is measured by excluding food and fuel items from Wholesale Price Index (WPI) or Consumer Price Index (CPI)
3. Answer - Option B
Explanation -
The Indian Currency has a “Language Panel” with the denomination of the note in 15 different regional languages. Besides these 15 languages, the other 2 languages are “HINDI”, the national language, and “ENGLISH”. So that makes it to 17 languages. The languages are Hindi, English, Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu.
4. Answer - Option D
Explanation -
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.
5. Answer - Option C
Explanation -
A lender of last resort is an institution, usually a country’s central bank that offers loans to banks or other eligible institutions against eligible securities that are experiencing financial difficulty or are considered highly risky or near collapse.
6. Answer - Option A
Explanation -
According to the Ministry of Union Housing and Urban Affairs, the government expects 25% of the total vehicles on roads would be electric vehicles by 2030. The government has issued a set of guidelines to set up charging stations for electric vehicles across the country, outlining ways to build such fuelling points every 25 km
7. Answer - Option C
Explanation -
The Asian Development Bank (ADB) has cut its India GDP growth forecast for 2019-20 to 7.2%. ADB had estimated 7.6% economic growth earlier. ADB is the first multilateral lending agency to slash India’s growth estimate. ADB HQ- Mandaluyong, Philippines President- Takehiko Nakao
8. Answer - Option B
Explanation -
The currency chests should have CBL of Rs 1000 crore, subject to ground realities and reasonable restrictions. The Reserve Bank of India came out with guidelines for banks to set up new currency chests, which include a minimum area of 1,500 square feet for the strong room. The new chests should have a processing capacity of 6.6 lakh pieces of banknotes per day.
9. Answer - Option D
Explanation -
The Union Cabinet approved capital infusion of ₹ 6000 Crore in Export-Import Bank of India through recapitalization bonds to boost the bank’s capacity in export financing. The capital infusion would improve the bank’s capacity to support the exporters and importers.
10. Answer - Option A
Explanation -
Pradhan Mantri Shram Yogi Mandhan scheme provides an assured monthly pension of Rs 3,000 with a contribution of 100 rupees per month for unorganized workers after 60 years of age.
The government is providing Rs 500 crore initially for the scheme in the Budget.
The workers under the scheme would have to contribute Rs 100 per month and equal contribution would be paid by the government.
The scheme would cover the unorganized sector workers like autorickshaw driver, whose income is up to Rs 15,000 per month.

LIC ADO Financial Awareness Quiz - Set 59

1. Dimension of new Rs 200 banknote introduced under ‘Mahatma Gandhi Series’ is___________.

2. The alphabet ____ is inserted as identification mark in ₹ 200 note for visually impaired people.

3. Which of the following is a component of Base rate?

4. Which among the following is not a trigger point of Prompt Corrective Action?

5. Which bank has planned to raise ₹ 2045 crore by issuing Basel III-compliant bonds?

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

7. National Housing Bank (NHB) increased the refinance limit from Rs. 24,000 crores to Rs ________.

8. e-Shang Redwood (ESR) has entered into a partnership with Allianz Real Estate to invest $1 billion to develop large-scale logistics and industrial facilities in _______ cities.

9. Which bank has paid ₹ 38 crores in fines to the GST department for alleged violations in domestic remittances?

10. The government has yielded ₹_____ crore through the first-ever sale of ‘enemy shares’.

2. Answer - Option C
Explanation -
The alphabet ‘H’ is inserted as an identification mark in ₹ 200 note for visually impaired people. The new 200-rupee denomination has Motif of Sanchi Stupa on the reverse and the base color of the note is Bright Yellow. The dimension of the banknote is 66 mm × 146 mm. For visually impaired, the identification mark H with micro-text ₹ 200 also placed in the new rupee note.
3. Answer - Option E
Explanation -
Base rate is arrived at by adding the following

The cost of deposits.
Adjustment for the negative carry in respect of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Un-allocable overhead cost for banks which includes components like legal and premises expenses, depreciation, cost of printing and stationery, expenses incurred on communication and advertising etc.
Average return on net worth, which is the amount of net income returned as a percentage of shareholder’s equity.

4. Answer - Option A
Explanation -
The balance of Trade is not a trigger point of Prompt Corrective Action.
The Reserve Bank of India has specified certain regulatory trigger points, as a part of prompt corrective action (PCA) Framework, in terms of three parameters, i.e. capital to riskweighted assets ratio (CRAR), net non-performing assets (NPA) and Return on Assets (ROA).
The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking financial companies (NBFCs) and FMIs
5. Answer - Option D
Explanation -
State Bank of India raised ₹2,045 crore by issuing Basel III-compliant bonds. the bonds are debentures of face value of ₹10 lakh each bearing coupon of 9.37% per annum payable annually with a call option after 5 years.
6. Answer - Option B
Explanation -
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.
7. Answer - Option A
Explanation -
National Housing Bank (NHB) increased the refinance limit from Rs. 24,000 crores to Rs 30,000 crores. This refinancing is a credit flow to Housing Finance Companies & other Institutions.
National Housing Bank monitors the liquidity position of Housing Finance Companies. It also provides financial support to eligible institutions.
8. Answer - Option B
Explanation -
Asia Pacific-focused logistics developer e-Shang Redwood (ESR) has entered into a partnership with Allianz Real Estate to invest $1 bn into India. The joint venture will focus on developing large-scale logistics & industrial facilities in 8 key cities-Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru & Hyderabad. The program will be funded on a 50:50 basis by Allianz & ESR.
9. Answer - Option B
Explanation -
Yes Bank has paid Rs 38 crore in fines to the GST department for alleged violations in domestic remittances. The money has been paid “in protest” payment. Over ₹ 32 Crore has been paid to the GST department, while ₹ 6 Crore has been paid in service tax which has been replaced by GST from July 2017.
10. Answer - Option D
Explanation -
The government has yielded ₹700 crore through the first-ever sale of ‘enemy shares’. Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India. Govt. set a disinvestment target of ₹90,000 crore for FY 2019-20.

LIC ADO Financial Awareness Quiz - Set 60

1.A/An ______ is a business professional who deals with the financial impact of risk and uncertainty.

2.The GST Council has reduced the tax on under construction residential properties to how much per cent?

3. If a cheque is presented for payment after three months the date mentioned in the cheque, this type of cheque is known as:

4. Which of the following is an unsecured money market instrument issued in the form of a promissory note?

5. What is term used for a series of payments made at fixed intervals of time, primarily used as a means of securing a steady cash flow for an individual during their retirement years?

6. IDBI Bank has launched which paperless account opening facility for NRIs residing in Financial Action Task Force (FATF) member countries?

7. Which company has recently acquired chatbot making startup firm “Haptik” for Rs.700 crores

8. World Bank has announced to grant what amount for ‘National Rural Economic Transformation Project (NRETP)’ of India?

9. Reserve Bank of India (RBI) has formalized USD 75-billion currency swap agreement with which country recently?

10. Central Statistical Office (CSO) has revised India’s GDP (Gross Domestic Product) growth forecast recently for the 2018-19. What is the revised GDP rate?

Answers and Explanations
1. Answer - Option A
Explanation -
An actuary is a business professional who deals with the financial impact of risk and uncert
2. Answer - Option D
Explanation -
On 24 Feb 2019, GST Council reduced the tax on under construction residential properties to 5 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 - Option C
Explanation -

Anti-dated cheque is the type of cheque on which the mentioned date is of earlier than the date on which it is presented for payment. This cheque is valid for three month from the date of issue.
Post dated cheque is the type of cheque on which the mentioned date is yet to come on which it is presented for payment.
A cheque is valid for three months. If a cheque is presented for payment after this period of three months, it is then called a ‘stale cheque’
Bearer cheque is the type cheque, the holder person can withdraw the money i.e anyone who present can withdraw the amount.
When we draw two parallel line on corner of cheque it referred to as crossed cheque. By using a crossed cheque one can make sure that the amount specified cannot be encashed but can only be credited to payee’s bank account.

4. Answer - Option D
Explanation -
Commercial Paper- Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP.
5. Answer - Option B
Explanation -
An annuity is a plan that helps you to get a regular payment for life after making a lump sum investment. The life insurance company invests the money of the investor and pays back the returns generated from it.
6. Answer - Option B
Explanation -
IDBI Bank has launched ‘NRI-Insta Online’ account opening process for NRIs residing in Financial Action Task Force (FATF) member countries to open an account in the Bank without visiting the branch or submitting paper documents such as physical documents as well as KYC proofs. This online facility is available in IDBI Bank’s website.
7. Answer - Option D
Explanation -
Reliance Jio Digital, a subsidiary of Reliance Industries has acquired a chatbot making startup firm Haptik for Rs.700 crores.
8. Answer - Option B
Explanation -
In order to provide a boost to rural income across 13 states on India, World Bank shall provide $250 million support to the National Rural Economic Transformation Project (NRETP).The agreement was signed between the World Bank and Government of India.
9. Answer - Option D
Explanation -
The Reserve Bank of India (RBI) and the Bank of Japan formalised the USD 75- billion swap agreement, which would act as a cushion against any sharp swings in the local currency whenever the international financial markets turn volatile. The proposal for entering into an agreement for the bilateral swap arrangement was approved by the Union Cabinet in January 2019.
10. Answer - Option D
Explanation -
On 31st January 2019, the Central Statistical Office (CSO), Ministry of Statistics and Programme implementation has revised the GDP (Gross Domestic Product) Growth forecast to 7.2% from earlier estimate of 6.7%.The GDP growth rate at current prices also called Nominal GDP growth rate has been revised to 11.3% to 10% for 2017-18. The actual growth rate for 2016-17 has also been revised to 8.2% from the earlier estimate of 7.1% by the CSO.

LIC ADO Financial Awareness Quiz - Set 61

1. Dimension of new Rs 200 banknote introduced under ‘Mahatma Gandhi Series’ is___________.

2.The alphabet ____ is inserted as identification mark in ₹ 200 note for visually impaired people.

3. Which of the following is a component of Base rate?

4. Which among the following is not a trigger point of Prompt Corrective Action?

5. Which bank has planned to raise ₹ 2045 crore by issuing Basel III-compliant bonds?

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

7. National Housing Bank (NHB) increased the refinance limit from Rs. 24,000 crores to Rs ________.

8. e-Shang Redwood (ESR) has entered into a partnership with Allianz Real Estate to invest $1 billion to develop large-scale logistics and industrial facilities in_______ cities.

9. Which bank has paid ₹ 38 crores in fines to the GST department for alleged violations in domestic remittances?

10. The government has yielded ₹_____ crore through the first-ever sale of ‘enemy shares’.

Answers and Explanations
1. Answer - Option A
Explanation -
Dimension of new Rs 200 banknote introduced under ‘Mahatma Gandhi Series’ is 66mm X 146mm. It has Motif of Sanchi Stupa & is Bright Yellow in colour
2. Answer - Option C
Explanation -
The alphabet ‘H’ is inserted as an identification mark in ₹ 200 notes for visually impaired people. The new 200-rupee denomination has Motif of Sanchi Stupa on the reverse and the base color of the
3. Answer - Option E
Explanation -
Base rate is arrived at by adding the following The cost of deposits.

Adjustment for the negative carry in respect of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Un-allocable overhead cost for banks which includes components like legal and premises expenses,depreciation, cost of printing and stationery, expenses incurred on communication and advertising etc.
Average return on net worth, which is the amount of net income returned as a percentage of shareholder’s equity.

4. Answer - Option A
Explanation -
The balance of Trade is not a trigger point of Prompt Corrective Action.The Reserve Bank of India has specified certain regulatory trigger points, as a part of prompt corrective action (PCA) Framework, in terms of three parameters, i.e. capital to risk weighted assets ratio (CRAR), net non-performing assets (NPA) and Return on Assets (ROA).The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking financial companies (NBFCs) and FMIs.
5. Answer - Option D
Explanation -
State Bank of India raised ₹2,045 crore by issuing Basel III-compliant bonds. the bonds are debentures of face value of ₹10 lakh each bearing coupon of 9.37% per annum payable annually with a call option after 5 years.
6. Answer - Option B
Explanation -
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.
7. Answer - Option A
Explanation -
National Housing Bank (NHB) increased the refinance limit from Rs. 24,000 crores to Rs 30,000 crores. This refinancing is a credit flow to Housing Finance Companies & other Institutions.National Housing Bank monitors the liquidity position of Housing Finance Companies. It also provides financial support to eligible institutions.
8. Answer - Option B
Explanation -
Asia Pacific-focused logistics developer e-Shang Redwood (ESR) has entered into a partnership with Allianz Real Estate to invest $1 bn into India. The joint venture will focus on developing large-scale logistics & industrial facilities in 8 key cities-Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru & Hyderabad. The program will be funded on a 50:50 basis by Allianz & ESR.
9. Answer - Option B
Explanation -
Yes Bank has paid Rs 38 crore in fines to the GST department for alleged violations in domestic remittances. The money has been paid “in protest” payment. Over ₹ 32 Crore has been paid to the GST department, while ₹ 6 Crore has been paid in service tax which has been replaced by GST from July 2017
10. Answer - Option D
Explanation -
The government has yielded ₹700 crore through the first-ever sale of ‘enemy shares’. Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India. Govt. set a disinvestment target of ₹90,000 crore for FY 2019-20.

LIC ADO Financial Awareness Quiz - Set 62

1. The value of each unit of a fund on any given day is known as its

2. Which of the following is/are treated as artificial currency?

3.EMI is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. What does EMI stand for?

4.Which one of the following is an accounting identity?

5. A trade period of more than one day to a few weeks is considered as ___________.

6. Economic growth is usually coupled with:

7. Consider the following components of India’s Foreign Exchange Reserves. 1.Foreign currency assets (FCAs) 2.Security Exchange 3.Special Drawing Rights (SDRs) 4.RBI’s Reserve position with International Monetary Fund (IMF) Which of the following options is/are correct regarding this?

8. Depreciation is also known a________

9. The interim budget 2019 had significant announcements for home buyers, the budget proposed to exempt levy of income tax on notional rent on the_____________ self-occupied house.

10. Finance Minister Piyush Goyal, in the interim budget 2019 proposes to hike the standard deduction limit to what amount from Rs 40,000, currently?

Answers and Explanations
1. Answer - Option A
Explanation -
NAV stands for Net Asset Value and is the value of each unit of the fund on a given day. The NAV of each fund is displayed on the website of the respective insurers.
2. Answer - Option C
Explanation -
Artificial currency is a substitute for an actual currency that is used in economic transactions. An example of an artificial currency is the Special Drawing Rights (SDR) that were created by the International Monetary Fund (IMF). SDRs are used by the members of the IMF to pay their dues and transfer funds between countries. The value of the SDR is computed using a grouping of currencies and adjusts as the prices of the underlying currencies change.
3. Answer - Option B
Explanation -
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full. With most common types of loans, such as real estate mortgages, the borrower makes fixed periodic payments to the lender over the course of several years with the goal of retiring the loan.
4. Answer - Option A
Explanation -
Assets = Liabilities + Equity
5. Answer - Option B
Explanation -
Day Trading: It is a type of stock trading where both buying and selling of a financial instrument is done on the same day and all the tradings are closed before the market close for the day. Short Term Trading: A trade period of more than one day to a few weeks is considered as short term trade. A stock is bought and held in position from one day to a few weeks. A short trade is entered by creating a sell position, which is covered by buying after one day or in a few weeks. Medium Term Trading: A trade period from a few weeks to a few months is considered as medium term trade. A trend is followed with tailoring stop loss.Long Term Trading: In this type of stock trading, stock is held for many months to many years. Investment decision is made by fundamental analysis of a stock.
6. Answer - Option B
Explanation -
Economic growth is usually coupled with inflation.Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
7. Answer - Option D
Explanation -
The Foreign Exchange Reserves of India consists of below four categories:

8. Answer - Option B
Explanation -
Depreciation is also known as Wear and tear
9. Answer - Option A
Explanation -
The interim budget 2019 had significant announcements for home buyers, the budget proposed to exempt levy of income tax on notional rent on the second self-occupied house.
10. Answer - Option B
Explanation -
Finance Minister Piyush Goyal, in the interim budget 2019 proposes to hike the standard deduction limit to Rs 50,000 from Rs 40,000, currently.

LIC ADO Financial Awareness Quiz - Set 63

1. Which of the following is not a currency in SDR basket?

2. For long duration crops, a loan is considered NPA when the instalment of principal remains unpaid for

3. A depository is an entity which helps an investor to buy or sell securities such as stocks and bonds in a paperless manner. How many depositories are there in India?

4. What is the per transaction cap in UPI v2.0?

5. What is the lot size of Priority Sector Lending Certificates (PSLCs)?

6. Acc. To the Finance Ministry, there was growth of __________ in income-tax returns electronically filed for the assessment year 2018-19, compared to those in 2017

7. With regards to the Interim Budget for 2019-20, the Fiscal deficit has been brought down to _________ in FY19.

8. India Rating projected India’s GDP to grow at _____ for 2019-20

9. SEBI fines ₹625 crore on which among the following entities in co-loaction facility case.

10. Warren Buffett’s Berkshire Hathaway (BRKA) , recently bought shares in which of the following firms for the first time?

Answers and Explanations
1. Answer - Option D
Explanation -
Special Drawing Right (SDR) – The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.Currencies – U.S. Dollar, Euro, Chinese Yuan, Japanese Yen and Pound Sterling
2. Answer - Option B
Explanation -
For short duration crops- the installment of principal or interest thereon remains overdue for two crop seasons. For long duration crops- the installment of principal or interest thereon remains overdue for one crop season
3. Answer - Option B
Explanation -
In India, there are two depositories: Central Depository Services Ltd. (CDSL) and National Securities Depository Ltd (NSDL). There do not serve the investors directly. They serve through Depository Participants. A depository acts as a link between the shareholders and the listed company that issues shares. A depository eliminates the risk associated with holding physical securities.
4. Answer - Option B
Explanation -
With the release of UPI v2.0 a major change has been made in the per transaction cap that was earlier Rs 1 lakh. It has been increased to Rs 2 lakhs.
5. Answer - Option C
Explanation -
The PSLCs would have a standard lot size of ₹ 25 lakh and multiples thereof.
6. Answer - Option B
Explanation -
There was growth of 19% in income-tax returns electronically filed for the assessment year 2018-19 .A total of 66.8 million returns were e-filed in FY19, which included 64.9 million for AY19.Current Finance Minister of India is Mr. Arun Jaitley
7. Answer - Option C
Explanation -
.With regards to the Interim Budget for 2019-20, the Fiscal
8. Answer - Option D
Explanation -
India Ratings & Research has lowered the country’s growth forecast for the current fiscal to 7.3%, from the earlier projection of 7.5% for the fiscal year 2019-2020. IMF also projected India to grow at 7.3% for FY 2019-20.
9. Answer - Option B
Explanation -
Markets regulator SEBI has directed NSE to pay ₹625 crore for lapses in checking on brokers gaining unfair access through co-location servers placed at the site of exchange and prohibited NSE from accessing the securities market for 6 months. NSE- National Stock Exchange MD & CEO- Vikram Limaye
10. Answer - Option B
Explanation -
Warren Buffett’s Berkshire Hathaway (BRKA) bought Amazon share, the exact amount will be disclosed in Berkshire’s quarterly report to the United States Securities and Exchange Commission later this month. Berkshire Hathaway owns about 250 million shares of Apple.

LIC ADO Financial Awareness Quiz - Set 64

1. What is a Hard Loan?

2.) Which of the following inflations is taken care by RBI’s monetary policy

3. Bank Credit Grows by what percentage in FY19.

4. Which of the following is not a derivative instrument?

5.A document that signifies that a person or organisation has sold goods to another person or customer is called ________.

6.Pakistan reaches agreement with IMF, to get _______ over 3 years

7. The cheque truncation system was introduced for faster clearing of cheques, in which of the following years?

8. RBI has recently imposed a monetary penalty on Nainital Bank. What is the amount of penalty?

9. The Maximum loan size to group borrowers for a small finance banks would be restricted to _____ percent of total capital funds.

10. Which of the following factors is not a reason for rising of Non-Performing Assets?

Answers and Explanations
1. Answer - Option C
Explanation -
A hard loan is a foreign loan that must be paid in hard currency, which is the currency of a nation that has political stability and a reputation for economic strength.A hard loan is a type of loan between a lender and borrower in two different counties, and is denominated in hard currency. Hard currency is a monetary system that is widely accepted around the world as a form of payment for goods and services.A loan agreement between a Brazilian company and an Argentinean company in which the debt is to be paid in U.S. dollars is a type of hard loan because U.S. dollars are considered to be hard currency and more stable than either the Brazilian real or the Argentine peso.
2. Answer - Option B
Explanation -
Demand Pull inflation: Excess money in the market will lead to higher demand, which leads to inflation. RBI with its tight money monetary policy restricts the money circulation and hence brings down inflation. Cost push inflation is due to increase in raw material prices, scarcity of raw materials, increase in labour cost. Cost of production is increased and hence inflation. It is within the preview of central government. Structural deficiencies: Lack of infrastructure
3. Answer - Option A
Explanation -
Bank credit grew by 13.24% in FY19 as compared to 10.3% in the previous FY, mainly aided by loans to services and retail sector. Deposit growth also gained momentum, growing by 10% as compared to 6.7% a year ago.
4. Answer - Option B
Explanation -

Cash & cash equivalents is a non- derivative instrument. A derivative is a financial security with a value that is reliant upon, or derived from, an underlying asset or group of assets.

Non-derivative financial instruments comprise investment in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowing, and trade and other payables.

5. Answer - Option A
Explanation -
Bill of Sale is regarded as a legal document and can be used as a valid proof in all legal matters. It also signifies that the ownership of goods has been transferred to another party. It can be used as a proof to signify a sale.
6. Answer - Option A
Explanation -
IMF has agreed to give $ 6 billion over three years, to Pakistan. A formal approval by the IMF is awaited. The agreement aims to support Pakistan’s strategy for stronger & more inclusive growth by reducing domestic and external imbalances, etc.
7. Answer - Option D
Explanation -
Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commencing in 2010, for faster clearing of cheques.
8. Answer - Option B
Explanation -
RBI has imposed a monetary penalty of Rs.1 crore on Nainital Bank for its failure to fully automate the NPA identification process, despite specific directions issued. This penalty has been imposed under the provisions of the Banking Regulation Act, 1949.
9. Answer - Option A
Explanation -

Small finance banks are a type of niche banks in India. Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending.Small finance banks will provide banking products to the unserved and undeserved sections of the country, which includes small and marginal farmers, micro and small industries, and other organized sector entities, at an affordable cost.

The Maximum loan size to a single person cannot exceed 10% of total capital funds and cannot exceed 15% in the case of a group. And at least 50% of its loans should constitute loans and advances of up to 25 Lakh.

10. Answer - Option E
Explanation -

The NPAs in Indian commercial banks are growing due to external as well as internal factors. The major external factors which lead to the rise in NPAs and non-controllable by Banks are Ineffective Statutory Recovery Procedures, Wilful Defaults, Natural Calamities, Industrial Sickness, Lack of Demand and Change in Government Policies etc,.

The major internal factors which lead to the rise in NPAs and being internal in nature and controllable by the Banks are Defective Lending Process or Poor Lending Decision, Inappropriate Technology, Improper SWOT analysis, Poor credit appraisal system, Managerial deficiencies, Absence of regular industrial visits, Re-loaning process etc.

LIC ADO Financial Awareness Quiz - Set 65

1. The GST Council has reduced the tax on under construction residential properties to how much per cent?

2. If a cheque is presented for payment after three months the date mentioned in the cheque, this type of cheque is known as:

3. Which of the following is an unsecured money market instrument issued in the form of a promissory note?

4. Money lent for more than one day but less than 15 days in the money market is known as:

5. Lakshmi Vilas Bank recently announced merger with which financier firm?

6. Reserve Bank of India and Bank of Japan have signed a BSA recently. The BSA provides for India to access ____________ billion US dollars whereas the earlier BSA had provided for 50 billion dollars.

7.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

8. Which Bank has been categorized as a private sector lender following the acquisition of majority stake by Life Insurance Corporation?

9. The Reserve Bank of India has slapped a penalty of ____________________ on Punjab National Bank for non-compliance of regulatory directions with regard to SWIFT operations.

10. India and Asian Development Bank (ADB) signed a 105 million dollar loan agreement to continue financing the transmission system upgrades in which of the following Indian states for increased supply of hydropower?

Answers and Explanations
1. Answer - Option D
Explanation -
On 24 Feb 2019, GST Council reduced the tax on under construction residential properties to 5 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.
2. Answer - Option C
Explanation -
Anti-dated cheque is the type of cheque on which the mentioned date is of earlier than the date on which it is presented for payment. This cheque is valid for three month from the date of issue. Post dated cheque is the type of cheque on which the mentioned date is yet to come on which it is presented for payment.A cheque is valid for three months. If a cheque is presented for payment after this period of three months, it is then called a ‘stale cheque’ Bearer cheque is the type cheque, the holder person can withdraw the money i.e anyone who present can withdraw the amount.When we draw two parallel lines on corner of cheque it referred to as crossed cheque. By using a crossed cheque one can make sure that the amount specified cannot be en-cashed but can only be credited to payee’s bank account.
3. Answer - Option D
Explanation -
Commercial Paper- Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP
4. Answer - Option A
Explanation -
The period of lending may be for a period of 1 day which is known as call money and between 2 days and 14 days which is known as notice money. Term money refers to borrowing/lending of funds for a period exceeding 14 days.
5. Answer - Option B
Explanation -
The announcement of private sector lender Lakshmi Vilas Bank merging with non-banking finance company Indiabulls Housing Finance came as a surprise to the bank’s employees
6. Answer - Option B
Explanation -
The RBI and Bank of Japan have completed signing of the bilateral currency swap agreement for USD 75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country.
7. Answer - Option D
Explanation -
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.
8. Answer - Option C
Explanation -
The RBI said that IDBI Bank has been categorized as a private sector bank for regulatory purposes with effect from January 21, 2019. This follows Life Insurance Corporation of India (LIC) acquiring 51 per cent of the total paid-up equity share capital of the bank.
9. Answer - Option B
Explanation -
The RBI has slapped a penalty of Rs 2 crore on Punjab National Bank (PNB) for non-compliance of regulatory directions with regard to SWIFT operations
10. Answer - Option B
Explanation -
The Asian Development Bank (ADB) and the Government of India signed a $105 million loan to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower to the state and the national grid

LIC ADO Financial Awareness Quiz - Set 66

1.) Recently, RBI has increased the investment limit for FY 20 for foreign portfolio investors to 6% in ____________.

2. Recently, Reinsurance brokers have been permitted to open non-interest bearing ___________ accounts by the Reserve Bank of India.

3. For Merchants with annual turnover exceeds __________, the Merchant Discount Rate has capped been at 0.8% for QR based sales subject to a maximum of ₹1000 per transaction.

4.Which among the following is incorrect about the National Financial Reporting Authority?(i) NFRA is headquartered in Mumbai. (ii) Section 210 of the Companies Act, 2013 provides for the constitution of NFRA. (iii) It has a maximum of 12 members which comprises a representative from the Ministry of Corporate Affairs. (iv) It can debar the individual/firm from engaging from practice for a maximum period of 10 years on account of proved misconduct.

5. Interest Rates are the rates that banks offer to their depositors. Which among the following is NOT a factor for determining the interest rates?

6. Consider the following about Priority Sector Lending. (i) Service charges are not levied on priority sector loans up to ₹ 1 Lakh. (ii) In 2011, YH Malegam committee re-examined the classification of Priority Sector Lending. (iii) Loans are provided to farmers for only harvesting purposes (Both Pre and Post-harvesting). (iv) The maximum loans given for repairing to the dwelling units in rural areas is ₹ 2.5 Lakh. Which among the following is incorrect about Priority Sector Lending?

7. Enforce Directorate comes under which department of Ministry of Finance?

8.As per the year-end review of Deendayal Antodaya Yojana – National Rural Livelihoods Mission, Self Help Groups have been extended capitalization support of approximately ___________ Crore.

9. Under the baseline scenario of the financial stability report, the system level CRAR is projected to come down to ____________ in March 2019

10. Which among the following is true about recently released Payment and Settlement Systems in India: Vision – 2019-2021? (i) The Vision envisages four goals of Confidence, Cost, Competition, Convenience. (ii) The volume of cheque-based payments is expected to be less than 5% of the retail electronic transactions by 2021. (iii) Usage of debit cards at Point of Sale transactions is expected to be at least 44% of total debit card transactions. (iv) Payment transaction turnover (including CCIL transactions and paper) is expected to be 22.30 times the GDP by March 2021.

Answers and Explanations
1. Answer - Option A
Explanation -
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
2. Answer - Option D
Explanation -
The Reserve Bank of India permitted reinsurance brokers to open non-interest-bearing foreign currency accounts with banks for undertaking transactions.Foreign currency account refers to a bank account held or maintained in currency other than the currency of India or Nepal or Bhutan
3. Answer - Option D
Explanation -
For merchants whose annual turnover exceeds Rs 20 Lakh, the MDR has been capped at 0.9% for swipe machine-based transactions and 0.8% for QR code-based sales, subject to a maximum of Rs 1000 per transaction.For merchants with a turnover of up to Rs 20 lakh, the MDR has been capped at 0.4% for swipe machine-based transactions and 0.3% for QR code-based transactions subject to the value of the transaction cannot exceed Rs 200 per transaction.MDR is the cost paid by a merchant to a bank for accepting payment from their customers via credit or debit cards every time a card is used for payments in their stores.
4. Answer - Option E
Explanation -

The National Advisory Committee on Accounting Standards (NACAS) had been constituted under Section 210A of the Companies Act, 1956 by the Government to advise it on the formulation and laying down of accounting standards and auditing policies. As per the new Companies Act, 2013 NACAS would be replaced by the National Financial Reporting Authority.
The NFRA is a quasi-judicial body which regulates aspects related to accounting and auditing. Section 132 of the Companies Act, 2013 provides for the constitution of NFRA to provide for matters relating to accounting and auditing.
It has a maximum of 15 members which comprises the representatives from the Ministry of Corporate Affairs, SEBI and RBI, retire Chief Justice of HC, President of ICAI.
NFRA may debar any member/firm from engaging himself or itself from practice for a minimum period of six months to maximum of ten years on account of proved misconduct. NFRA would be headquartered in New Delhi.

5. Answer - Option C
Explanation -
Current Account Deficit is NOT a factor for determining the interest rates.Interest Rates – The rates that banks offer to their depositors, the rate that they lend to their borrowers, the rate at which the Government borrows in the bond/G-Sec market, rates offered to small investors in small savings schemes etc.Some of the factors which govern the interest rates are:

Demand for money
Government borrowings
Supply of money
Inflation rate

6. Answer - Option E
Explanation -

The priority sector lending programme is introduced to ensure that adequate institutional credit flows into some of the vulnerable sectors of the economy. It was defined by the Dr. KS Krishnaswamy Committee.
In August 2011, Reserve Bank of India set up a Committee chaired by MV Nair to re-examine the existing classification and suggest revised guidelines for Priority Sector lending classification and related issues.Loans can be given for raising crops, pre and post-harvesting activities, purchasing of land for agricultural activities etc.
Under the Housing sector, Loans are given for repairs to the damaged dwelling units of families up to ₹ 2 Lakh in rural and semi-urban areas and up to ₹ 5 lakh in urban and metropolitan areas.
No loan related service charges/inspection charges should be levied on priority sector loans up to ₹ 25000

7. Answer - Option A
Explanation -
Enforce Directorate is the part of the Department of Revenue of the Ministry of Finance. The Directorate of Enforcement is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India It is formed in 1956 and headquartered in New Delhi.
8. Answer - Option A
Explanation -

As per the year-end review of Deendayal Antodaya Yojana – National Rural Livelihoods Mission, Self Help Groups have been extended capitalization support of ₹ 743.29 crore.
DAY-NRLM is a flagship programme of the Ministry of Rural Development that seeks to alleviate rural poverty through building sustainable community institutions of the poor.The centrally sponsored programme is implemented in partnership with the State governments. It was launched in 2011.

9. Answer - Option D
Explanation -

Under the assumed baseline macro scenario, system level CRAR is projected to come down to 12.9% in March 2019.
According to the RBI, Credit growth of scheduled commercial banks has improved between March 2018 and September 2018, driven largely by private sector banks (PVBs).
The asset quality of banks showed an improvement with the gross non-performing assets (GNPA) ratio of SCBs declining from 11.5% in March 2018 to 10.8% in September 2018.
Under the baseline scenario, the GNPA ratio may decline from 10.8 % in September 2018 to 10.3% in March 2019.

10. Answer - Option C
Explanation -

Reserve Bank of India’s 2018 vision document envisaged building best-in-class payment and settlement systems for a ‘less-cash’ India.
The Vision envisages four goals (4 Cs) – Competition, Cost, Convenience and Confidence. The digital payment transaction turnover vis-à-vis GDP is expected to increase to 10.37 in 2019, 12.29 in 2020 and 14.80 in 2021.
Payment transaction turnover, including CCIL transactions and paper, is expected to be 22.30 times the GDP (at market prices-current price) by December 2021.
Usage of debit cards at Point of Sale transactions is expected to be at least 44% of total debit card transactions.
The volume of cheque-based payments is expected to be less than 2% of the retail electronic transactions by 2021.

LIC ADO Financial Awareness Quiz - Set 67

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

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

3. ‘Financial Inclusion’ is the powerful tool adopted by the Reserve Bank of India to fulfil the basic objective of

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

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?

6.Which one of the following is not a salient feature of debit card?

7. Which of the following is true?

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

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

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

Answers and Explanations
1. Answer - Option C
Explanation -
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 - Option B
Explanation -
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 - Option B
Explanation -
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 - Option B
Explanation -
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, et
5. Answer - Option B
Explanation -
f 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 - Option D
Explanation -

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 - Option C
Explanation -
Core inflation = headline inflation – food and fuel inflation Core CPI weightage = 42.9% Core WPI weightage = 55%
8. Answer - Option B
Explanation -
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 - Option C
Explanation -
Tata Steel BSL Ltd has successfully completed the acquisition of Bhushan Energy Limited (BEL) for Rs 800 cr. in accordance with the Approved Resolution Plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016.
10. Answer - Option A
Explanation -
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 girl.

LIC ADO Financial Awareness Quiz - Set 68

1. It is a tax on the personal income of the individuals, Hindu Undivided Families(HUFs), partnership firms, etc.

2. A/an __________operates until the completion of a transaction process, which is implemented after all the conditions between the buyer and the seller are settled

3. It is the aggregate of the gross balances of primary incomes of all resident institutional units.

4. Which among the following is shared by a customer using the UPI interface for transactions?

5. The maximum transaction limit of United Payment Interface is

6. PF tax-exempt on completion of __________years of continuous service to an employer.

7. BoB has planned to raise Rs ____________ via share sale in FY20

8. Acc. to a SBI report,India’s GDP will expand by _____________ percent in January-March 2019

9. Which organisation has released draft liquidity framework guidelines for ailing NBFCs

10. According to the OECD report, India’s GDP is expected to grow at ________ in FY20

Answers and Explanations
1. Answer - Option A
Explanation -
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.
2. Answer - Option C
Explanation -
Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow agent until it receives the appropriate instructions on until predetermined contractual obligations have been fulfilled. Money, securities, funds, and other assets can all be held in escrow. NRE-Non Resident External account NRO-Non Resident Ordinary account BSBDA-Basic Savings Bank Deposit Account
3. Answer - Option B
Explanation -
Net national income (NNI) is net national product (NNP) minus indirect taxes. Gross National Income is the aggregate of the gross balances of primary incomes of all resident institutional units. Gross national income (GNI) is GDP less net taxes on production and imports, less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world. Private income is the total of factor incomes and transfer incomes received from all sources by private sector(private enterprise and households) within and outside the country.
4. Answer - Option D
Explanation -
In case of Unified Payment Interface network, customers using it do not have to share anything sensitive to use the system as the only thing that is shared through this is the virtual address of the user. The customers do not have to share any information such as the IFSC code or the bank account number
5. Answer - Option A
Explanation -
United Payment Interface network is used by customers to transfer money from his account to any other account. It is conceptualized by NPCI and the maximum limit of transaction is Rs 1 lakh in this interface
6. Answer - Option C
Explanation -
As per Fourth Schedule of the Income-tax Act, the accumulated PF balance due and payable to an employee is exempt from tax, if the employee has rendered continuous service with his employer for a period of 5 years or more.
7. Answer - Option A
Explanation -
BoB plans to raise Rs 11,900 crore during the current fiscal through share sale, including Employee Share Purchase Scheme to shore up capital for meeting business expansion requirement. The bank expects to garner Rs 1,500 crore from Bank of Baroda ESPS.
8. Answer - Option A
Explanation -
Acc. to a SBI report,India’s GDP will expand by 5.9-6.1 percent in January-March 2019,pulling down growth for the entire 2018-19 fiscal year to below 7 percent. FY19 GDP growth will be at 6.9 percent.
9. Answer - Option D
Explanation -
RBI released draft guidelines on liquidity risk management framework for NBFCs and CICs, due to rating downgrades and debt defaults in the NBFC sector and the need for a stronger asset liability management (ALM) framework.
10. Answer - Option D
Explanation -
Organization for Economic Co-operation & Development projected India’s Gross Domestic Product to grow at 7.25% in FY19 & 7.5% in FY20. The report suggested that the collection of GST & personal income tax will help reduce the high public debt-to-GDP ratio.

LIC ADO Financial Awareness Quiz - Set 69

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

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

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

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

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

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.

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

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

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

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___________.

Answers and Explanations
1. Answer - Option C
Explanation -
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 - Option E
Explanation -
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 - Option B
Explanation -
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 - Option A
Explanation -
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 - Option D
Explanation -
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 - Option C
Explanation -
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 day for at least five days a week.
7. Answer - Option E
Explanation -
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 - Option B
Explanation -
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 - Option A
Explanation -
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 - Option B
Explanation -
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.”

LIC ADO Financial Awareness Quiz - Set 70

1. The security which is offered to a bank in case of a loan is taken is known as which among the following?

2. Which among the following is a bond that is sold at good discount as it has no coupon is known as which among the following?

3. Which among the following defines the right of the creditor to take possession of all the goods taken as security for any outstanding debt of the borrower?

4. Which among the following focuses on giving financial services to companies

5.Which among the following defines the dilution of stake by the government in public sector undertaking companies?

6. According to a recent RBI report, India’s Forex reserves increased to ______________.

7. RBI slapped s 2 crore fine on Kotak Mahindra Bank for not complying with directions. Headquarters of Kotak Mahindra Bank is in _______________.

8. Infrastructure Finance Company (IFC) is a non-banking finance company. It should have a Capital to Risk-weighted Assets Ratio of _________.

9. The rolling out of forex platform for retail participants was announced by the RBI. The platform had been developed by __________

10. As per the Global Economic Prospects report from the World Bank, the forecasted growth rate of India has retained at _______ for the current Fiscal year.

Answers and Explanations
1. Answer - Option E
Explanation -
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
2. Answer - Option B
Explanation -
A Zero Coupon Bond is such a bond that makes no periodic interest payment and is sold at a deep discounted value from the face value for this reason. The buyer of the bond receives a return by gradual appreciation of the security, which is redeemed at face value on the date of maturity which is a specified date
3. Answer - Option A
Explanation -
General Lien is the power given to a creditor to take possession of all the goods or property given to him or her against the outstanding dues of the account of the borrower any time.However, the creditor has no right to sell the same and can only take possession till the time the debt amount is realized by the bank
4. Answer - Option B
Explanation -
Wholesale Banking is defined as that type of banking which is mainly for government agencies, corporations, pension funds, companies with sound and strong balance sheets etc so that all the financial needs of these organizations can be taken care of by the same financial organization to avoid any complication on the part of the company and the financial organization both
5. Answer - Option A
Explanation -
Disinvestment is defined as the process of diluting the stake of the government in the public sector companies. This is of various types such as strategic disinvestment, token disinvestment etc and it depends on this whether the management control of the company is transferred or not
6. Answer - Option C
Explanation -
According to RBI’s new data, country’s foreign exchange reserves increased by USD 1.875 billion to USD 421.867 billion in the week ending May 31, in which foreign currency assets,being a major component of the overall reserves. Foreign Currency assets stand at USD 394.1 bn.
7. Answer - Option E
Explanation -
The Reserve Bank of India has imposed a monetary penalty of Rs 2 crore on Kotak Mahindra Bank for non-compliance of directions. This action was taken under sections 27(2) and 35A of the Banking Regulation Act, 1949. HQ of Kotak Mahindra Bank – Mumbai
8. Answer - Option A
Explanation -
The CRAR of the Infrastructure Finance Company should be at 15% with Tier I capital at 10%. Infrastructure Finance Company is a non-banking finance company which deploys at least 75% of its total assets in infrastructure loans.
9. Answer - Option C
Explanation -
The platform had been developed by Clearing Corporation of India Ltd (CCIL). RBI announced the rollout of a foreign exchange trading platform for retail participants. It aims to provide transparency of pricing & promote competition among market-makers leading to better pricing for all customers.
10. Answer - Option B
Explanation -
As per the Global Economic Prospects report from the World Bank, the forecasted growth rate of India has retained at 7.5% for the current financial year. Also, WB stated that India’s growth rate is expected to remain the same for the next two fiscals.

Hide Index Show Index

LIC ADO Financial Awareness Quiz

Basic Info/Lessons

LIC ADO - Study Guide

LIC ADO - Practice/Test

LIC ADO - On Test Day

LIC ADO - Recruited?

LIC ADO Financial Awareness Quiz

Introduction

Quiz