Insurance and Financial Market Awareness Quiz for LIC AAO – Set 1

Insurance and Financial Market Awareness for LIC AAO – Set 1 

This is Insurance and Financial Market Awareness Test Series for LIC AAO 2019 Mains exam. Attempt all our quizzes for LIC AAO and score the best marks. 

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Time Limit: 2 Minutes

 

1. Economic units whose consumption and planned investments are less than their income is known as?
   Deficit Spending Economic Unit
   Surplus Spending Economic Unit
   Neutral Spending Economic Unit
   Forced Spending Economic Unit
   None of these
   Option B
   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. Which of the following sector is not included in the GDP?
   Primary Sector
   Secondary Sector
   Transport Sector
   Community and Personal Sector
   Foreign Sector
   Option E
   Foreign Sector is not included

    

3. Flow of Funds(FoF) accounting in India is done by?
   Ministry of Finance
   Central Statistics Office
   Reserve Bank of India
   State Bank of India
   DSO
   Option
   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.

    

4. The sum of liabilities of a bank to the banking system and to the public is ____
   Asset
   CRR
   Liability
   NDTL
   None of these
   Option
   NDTL

    

5. Reserve Bank of India deals in call money market via ____
   repo auction
   CRR
   SLR
   T-Bills
   All of these
   Option
   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

    

6. The Unit Trust of India (UTI) was formed in which year?
   1948
   1964
   1952
   1976
   1986
   Option B
   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 1st of February 1964.

    

7. ________ is known as approaching a client by an insurer or an intermediary with a view to convince the client to purchase an insurance policy
   Solicitation
   Reinstatement
   Proposal
   Claim
   Settlement
   Option A
   

    

8. As per IRDA, the maximum limit to pay insurance premium via cash mode is___________
   Rs 2,00,000
   Rs 75,000
   Rs 50,000
   Rs 1,00,000
   Rs 25,000
   Option C
   Premium is required to be paid in advance and can be paid via cash up to Rs 50,000, (the limit set by IRDA for cash payments) cheque or DD. Further, most insurance companies have provided for payment of premium online.

    

9. India’s first share market was set up in which city?
   Mumbai
   Delhi
   Chennai
   Kolkata
   Pune
   Option A
   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.

    

10. What is the longest permissible period for which a fixed deposit can be accepted by a commercial bank?
    5 years
    8 years
    10 years
    15 years
    None of these
    Option C
    10 years