(Model Paper) LIC AAO Exam (General Awareness)
Life Insurance Corporation
Model Paper for LIC AAO Exam (Test – I: General Awareness)
1. __ was not nationalized in 1969:
(1) Punjab National Bank
(2) Oriental Bank of commerce
(3) Bank of Baroda
(4) Union Bank of India
(5) None of these
2. In the first round 14 major banks with a liability base of ____ were nationalized:
(1) 10 crore or more
(2) 20 crore or more
(3) 50 crore or more
(4) 100 crore or more
(5) None of these
3. _____ do not attract TDS:
(1) Fixed deposits
(2) Reinvestment depositsc) NRO SB
(3) NRO FDR
(4) Recurring deposits
(5) None of these
4. SLR is maintained as a percentage of:
(1) Time liabilities
(2) Demand liabilities
(3) Time and Demand liabilities
(4) Gross time and demand liabilities
(5) Net demand and time Liabilities
5. The maximum Statutory Liquidity Ratio to be maintained by banks is_____:
(1) 25%
(2) 30%
(3) 35%
(4) 40%
(5) None of these
6. CRR funds are kept by the Banks in ____:
(1) Cash in hand at branches
(2) Balance with other banks
(3) Balance in a special Account with RBI
(4) Funds in the currency chest
(5) None of these
7. An increase in CRR by RBI leads to:
(1) Decrease in deposit
(2) increase in deposit
(3) Increase in lendable resources
(4) Decrease in lendable resources
(5) None of these
8. When RBI reduce the CRR it results into:
(1) Decrease in deposit
(2) increase in deposit
(3) Increase in lendable resources
(4) Decrease in lendable resources
(5) None of these
9. What is meant by development Oriented banking?
(1) Infrastructure financing
(2) Extending loans to States, which are undevelopment
(3) Taking up the task of develo-pment of the economy by providing support to
under privileged sections of the society
(4) All the above
(5) None of these
10. Principal functions of SIDBI:
(1) Promotion of SSI
(2) Finance of SSI
(3) Development of SSI
(4) All the above
(5) None of these
11. ____ heads and conducts the affairs of RBI:
(1) Central Board
(2) local board
(3) Regional board
(4) All of the above
(5) None of these
12. __ for meeting day - to - day receipt and expenditure mismatch to both Central and State Governments.
(1) treasury bills
(2) Ways and Means advance
(3) date and securities
(4) All the above
(5) None of these
13. RBI known as lender of last resort because:
(1) It has to meet the credit need of citizens to whom no one else is willing
to lend
(2) Banks lend to go to RBI as a last resort
(3) It comes to help banks in times of crisis
(4) All of the above
(5) None of these
14. These days RBI uses Selective credit control measures rather infrequently because of:
(1) Deregulation of functions
(2) Autonomy given to banks
(3) Comfortable liquidity
(4) Reasonable inflation level
(5) All the above
15. Which is incorrect with regard to powers of RBI:
(1) Holds cash reserve banks
(2) Controls banking system through licensing
(3) Supervises Banking system through inspection
(4) None of the above
(5) None of these
16. Intervenes in markets to maintain the external value of the Indian rupee:
(1) Exporters
(2) Importers
(3) RBI (4) IMF
(5) None of these
17. In India, forex rates are determined by:
(1) Importers
(2) Exporters
(3) RBI
(4) Ministry of commerce
(5) Demand and supply forces
18. Regional Rural Banks were set up on the recommendations of:
(1) Nariman committee
(2) Narasimham committee
(3) Gadgil committee
(4) Puri committee
(5) None of these
19. committee, launched the process of reforms of financial system in India:
(1) Gadgil committee
(2) Nariman committee
(3) Narasimham committee
(4) khanna Committee
(5) None of these
20. Which of the following can be categories as a Merchant Banking service?
(1) Consultancy on finance to a company
(2) Advance in capital structure
(3) Managing mergers
(4) Helping in finalizing take over
(5) All the above
21. The instrument which provides proprietary interest in company and which entitles a person to dividend on profits, is called?
(1) Bond
(2) Share
(3) Debenture
(4) Warrant
(5) Any of the above
22. Which of the following provides proper definition of a Mutual Funds?
(1) It is an association of members of public
(2) These members want to invest in financial instrument
(3) They want to invest in financial instrument assts of business sector
(4) All the above
(5) None of these
23. Which of the following organisations/agencies works solely to monitor and arrange flow of agriculture credit in India?
(1) NABARD
(2) SIDBI
(3) RBI
(4) SEBI
(5) None of these
24. The currency notes of which of the following denominations are not printed in India ?
(1) Rs. 5
(2) Rs. 10
(3) Rs. 50
(4) Rs. 2500
(5) Rs. 1000
25. Which of the following is not the name of a bank functioning in India?
(1) Central Bank of India
(2) UCO Bank
(3) Aegon Religare (4) Dena Bank
(5) ICICI Bank
26. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as :
(1) Term Deposit
(2) Demand Deposit
(3) Bond
(4) Mortgage
(5) Advance
27. Which of the following terms NOT used in banking/finance related matters ?
(1) Discount Rate
(2) Letter of credit
(3) Policy Rate
(4) Exchange rate
(5) Base rate
28. Who amongst the following is the chief of SEBI?
(1) Milind Bhave
(2) UK Sinha
(3) Shashikath Verma
(4) Shyamala Gopinath
(5) None of these
29. Which of the following is a leading electronic-payment tec-hnology firm?
(1) Visa
(2) Max
(3) BSE
(4) Sensex
(5) SWAP
30. Global Market means market of :
(1) USA
(2) China
(3) OPEC members
(4) European union countries
(5) All major countries and their alliances
