General,

Financial &
Insurance
Awareness
MCQs
For LIC Assistant Mains
Exam 2019
General & Financial Awareness MCQ LIC Assistant Exam 2019

General and Financial Awareness section is of prime importance in the LIC Assistant Mains
Exam as it can help you fetch very high marks in the exam. As the cut off marks of various
Bank, Insurance and SSC Exams skyrocket these days, scoring high marks in the
GENERAL/FINANCIAL Awareness section will help you sail through the Mains paper. Keeping
the same in mind we are coming up with General and Financial Awareness MCQs to help you
learn and retain important Financial and Insurance Awareness facts, concepts and general
information important from exam point of view.

General and Financial Awareness MCQs – LIC Assistant Exam 2019

Q.1. Which of the following terms matches closest with the ‘Family Floater’?
a. Health Insurance
b. Property Insurance
c. Accidental Injury
d. Consequential Loss
e. Marine Partial Loss
Answer: a
Q.2. The Motor Vehicles (Amendment) Bill, 2019 was introduced in Lok Sabha on July 5,
2019 by the Minister for Road Transports & Highways, Mr. Nitin Gadkari. The Bill seeks to
amend the ………….?
a. Motor Vehicles Act, 1908
b. Motor Vehicles Act, 1948
c. Motor Vehicles Act, 1968
d. Motor Vehicles Act, 1988
e. Motor Vehicles Act, 2008
Answer: d
Q.3. In the ‘Hit & Run’ cases, claims are settled from ……………...?
a. Solatium Fund
b. IRDAI ‘s Contingency Fund
c. Insurance Company’s Reserves
d. Motor Third Party Pool
e. State Government’s Fund
Answer: a
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

Q.4. General Insurance Corporation (GIC) of India is a state-owned enterprise in India.

Where is the head office of GIC?
a. Kolkata
b. Chennai
c. New Delhi
d. Mumbai
e. Hyderabad
Answer: d
Q.5. ……………… Stocks are shares of very large and well-recognised companies with a long
history of sound financial performance.
a. Pink Chip
b. Blue Chip
c. Purple Chip
d. Red Chip
e. Yellow Chip
Answer: b
Q.6. Department of Financial Services has approved Rs ……………………. Crore capital infusion
plan for the 3 state-run general insurance companies in light of their financial conditions
being very weak.
a. 10,000 Crores
b. 15,000 Crores
c. 7000 Crores
d. 2000 Crores
e. 12,000 Crores
Answer: e
Q.7. Conservation of a Lump Sum debt to a series of repayments in the form of a sum of
principal and interest is known as …………?
a. Amortization
b. Lien
c. Adequacy
d. Consortium
e. Garnishee
Answer: a
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

Q.8. Bharti AXA Insurance has joined hands with ……………………… supporting mid-day meal
programme for school going children.
a. Akshaya Patra
b. Akanksha Foundation
c. PRADAN NGO
d. Smile Foundation
e. Isha Foundation
Answer: a

Q.9. An Affluent Individual who provides capital for a business start-up, usually in exchange
for convertible debt or ownership equity is known as?
a. Venture Capitalist
b. Angel Investor
c. Peer to Peer Lender
d. Both a & b
e. All a b & c
Answer: b
Q.10. According to the Union Budget 2019-20, a tax deduction of 2% at the source is
applicable on cash withdrawals exceeding …………… in a year from the Bank Account.
a. Five Crores
b. Ten Crores
c. Three Crores
d. Two Crores
e. One Crores
Answer: e
Q.11. Where is the headquarter of IRDAI?
a. Bengaluru
b. Mumbai
c. New Delhi
d. Chennai
e. Hyderabad
Answer: e
Q.12. What is the principle of Insurance?
a. Sharing of Losses
b. Probabilities
c. Large Numbers
d. Randomness
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

e. All of the Above

Answer: e

Q.13. Insurance helps in:

a. Prevent adverse situations from happening
b. Reduce the financial consequences of adverse situations
c. Negate all the consequences of adverse situations
d. Make assets continuously productive
e. All of the above
Answer: b
Q.14. Which bonds are called discount bonds or deep discount bonds?
a. Fixed rate bonds
b. Floating rate bonds
c. Zero coupon bonds
d. Half rate bonds
e. None of the above
Answer: c
Q.15. Pradhan Mantri Karam Yogi Maan Dhan Yojana is old-age protection scheme for?
a. Farmers
b. Unorganised Workers
c. Service Class
d. Small Shopkeepers
e. Complete Business class
Answer: d
Q.16. Pradhan Mantri Karam Yogi Maan Dhan Scheme has been announced for the for
traders and small shopkeepers with an annual turnover less than?
a. Rs 1.5 Lakh
b. Rs 1.25 Lakh
c. Rs 1.25 Crore
d. Rs. 2.5 Crore
e. Rs 1.5 Crore
Answer: e
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

Q.17. The main purpose of having Life Insurance is……………...?

a. As an avenue for long-term investment
b. As a medium for getting income tax benefits from savings
c. As a Governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Answer: e

Q.18. Which Insurance company has tied up with Mobikwik to offer affordable cancer
protection cover?
a. Bajaj Allianz General Insurance Co. Ltd.
b. Apollo Munich Health Insurance Company
c. National Insurance Co. Ltd.
d. Religare Health Insurance Co. Ltd.
e. Aditya Birla Health Insurance
Answer: e
Q.19. The principle of ……………………. ensures that an insured person does not profit by
insuring with multiple users.
a. Subrogation
b. Contribution
c. Co-insurance
d. Indemnity
e. Mitigation of Loss
Answer: b
Q.20. Who is appointed as the new Controller General of Accounts of Financial Ministry?
a. Ashutosh Sahay
b. K V Durga Prasad
c. Sumanto Ghosh
d. Soma Roy Burman
e. T.N. Manoharan
Answer: d
Q.21. What is the full form of CTL?
a. Contributory Total Loss
b. Constructive Total Loss
c. Construction Total Loss
d. Contractor’s Total Loss
e. Co-insurers Tally of Loss
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

Answer: b
Q.22. Debt Instrument which is not secured by any asset or collateral if known as ………….?
a. Equity
b. Debentures
c. Bonds
d. T-bills
e. None of the above
Answer: b

Q.23. Which bonds are issued at variable coupon rates which is re-set at pre-announced
intervals?
a. Fixed rate
b. Floating rate
c. Zero Coupon
d. Half rate
e. None of these
Answer: b
Q.24. Which committee proposed the launch of Elephant Bonds in India?
a. Tapan Roy Committee
b. Surjit Bhalla Committee
c. Bibek Debroy Committee
d. R K Sinha Committee
e. Urjit Patel Committee
Answer: b
Q.25. What is the effect of Inflation on the value of money?
a. Increase
b. Decrease
c. Increase first then decrease
d. Decrease first and then increase
e. Value remains the same
Answer: b
General & Financial Awareness MCQ - Part 1 LIC Assistant Exam 2019

Q.26. Which department of Reserve Bank of India acts as the registry/depository of G-secs,
T-bills etc?
a. Currency Management Department
b. Budgetary Control and Expenditure Department
c. Banking Department
d. Credit and Rural Planning Department
e. Public Debt Office
Answer: e
Q.27. MICR in the cheque is ……………... digit code.
a. 6
b. 3
c. 9
d. 11
e. None of these
Answer: c
Q.28. How many GRIDS are there for Cheque Truncation System in India?
a. 3
b. 6
c. 7
d. 9
e. 11
Answer: a
Q.29. In cases where a Life Insurance Agent collects the premium from the policyholder and
remits it to the insurer’s office, he/she is acting as an agent of ………...
a. IRDAI
b. The Insurance Company
c. The Policyholder
d. The Broker
e. None of these
Answer: b
Q.30. RBI projected the inflation rate in 2019-20 to keep in the range of………….?
a. 2 plus/minus 4%
b. 3 plus/minus 2%
c. 4 plus/minus 2%
d. 4 plus/minus 4%
e. None of the above
Answer: c
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