International Association of Insurance Supervisors,National Insurance Academy, GIMAR

1.Where is the HQ of International Association of Insurance Supervisors?

New York. London Hyderabad Basel

2.What does GIMAR stands for?

General Insurance Market Report Global Insurance Market Report Growing Insurance Market Report None

3.National Insurance Academy is situated in:

Delhi. Pune. Salem Telengana

4.IRDA's previous Headquater was in:

Delhi Mumbai Chennai Kolkata

5.The Chairman of General Insurers' (Public Sector) Association of India?

G.Srinivasan T.Vijayan M.Kharrat None

Actuary , ECGC

1.What does the term Actuary stands for in Insurance:

A specialist in Insurance claimsettlement A specialist in insurance marketing A specialist in Insurance calculations None of this

2.ECGC is made to provide:

Insurance cover in external trade Insurance cover in internal trade Insurance cover in export trade Insurance cover in import trade.

3.Which is not a part of Life insurance?

Endowment Term Priority Annuity

INSURANCE AWARENESS QUESTIONS

1.The central office of the Life Insurance Corporation of India (LIC) is located at

Kolkata New Delhi Chennai Mumbai

2.Which of the following is not the name of an Insurance Scheme launched by the Government of India

Janashree Bima Yojana Krishi Shramik Sarnajik Suraksha Yojana Shiksha Sahyog Yojana Varsha Bima Yojana

3.The Life Insurance Corporation Of India has how many Zonal offices in India ?

5 8 10 15

4.As per the news published in various newspapers, Life Insurance policies may become paperless in the near future. This means

LIC will not insure any person here after as it has already reached its peak 

LIC will not ask for any documents from a person who wishes to purchase an Insurance policy 

All policy related documents and policy certificates will henceforth be available in electronic form and not in their present physical

LIC henceforth will not entertain any claim or complaint in written form or on paper. Things should be in electronic condition.

5.The punch line of the advertisement of which of the following organization is “Jindagi ke sath bhi Jindagi ke bad bhi” ?

New India Assurance 

General Insurance Corporation

ICICI Prudential

Life Insurance Corporation Of India

GK Insurance quiz

1.Which Insurance policy gives holder the benefits of both Insurance and Investment?

Term Insurance Policies Money-back Policies Unit-linked Investment Policies Pension Policies

2.Which among the following is the correct full form of ESIC?

Employee’s State Insurance Corporation Employer’s State Insurance Corporation External State Insurance Corporation Exact State Insurance Corporation

3.Under ESIC, Employer contribution rate and Employee contribution rate respectively is –

4.75% & 1.75% 1.75 % & 4.75% 12% & 12% none

4.The process of identifying and classifying the degree of risk represented by a proposed insured. As per insurance sector, what does the term stands for?

Underwriting Collateralized Mortgage Obligation Actuary Annuity

5.A person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate. In terms of insurance, what does a person stands for?

Underwriter Merchant Banker Forex dealers Registrars

Insurance Quiz

1.What are the main functions performed by the IRDA?

Protect the rights of policy holders Adjudication on insurance related matters Promoting insurance business All of these

2.If an insurance policy holder is not satisfied with the award of the insurance ombudsman, he / she can approach to__?

Courts of law Consumer forums Either a or b The award of insurance ombudsman can not be challenged

3.Which one of the following is the example of Insurance depositories?

Central Insurance Repository Limited (CIRL) Karvy Insurance repository Limited NSDL Database Management Limited All of these

4.Which of the following is correct full form of IGMS with reference to insurance sector?

Integrated Grievance Management System Internal Grievance Management System Important Grievance Management System Integral Grievance Management System

5.Up to what extent, FDI in Insurance sector is allowed by the Government of India (GOI)?

26% 49% 51% 100%

Basic Financial Terms

A AGM -

Annual General Meeting, it is the year meeting held by every registered company. Agenda is to explain the performance during the year, presentation of annual financial statements, voting on important financial decisions. Any shareholder can participate in AGM.

Asset turnover ratio - This ratio can be explained as Net assets / Total turnover or sales. This ratio measures the operational efficiency of business assets. In simple terms this measures how many time total assets turned in a year and how efficiently the assets are used in a business.

Acid test ratio - This is one of the important ratio to measure business liquidity.

Business liquidity is defined as ability of a business to pay it;s short term debts. Acid test ratio = Highly liquid assets / current liabilities

American Depository Receipts - This is the way non-US companies raises money from US investors. These shares can be traded in US stock exchanges and denominated in US $.

Amortization - It is an accounting technique by which intangible assets are written off over a period of time. For example provision for doubtful debts or preliminary expenses are written off over a certain period of time.

Annuity - It is an investment scheme under which investor makes recurring investments and lump sum payment is made to him at the end. Common example is Recurring deposit account at a post office where people makes small monthly deposits and gets their money back at the end of period. Benefit of Annuity is investor gets compound interest over a period of time. 

Asset Management Company - AMC is a company that pools and invests investor money in pre-determined goals. Pool of funds is known as Mutual fund.

Audit - Financial statement and physical stock is checked annually by professional auditor ( Chartered Accountant affiliated by ICAI in India )

Key Financial Terms

CAMELS: CAMELS is a type of Bank Rating System. (C) stands for Capital Adequacy, (A) for Asset Quality, (M) for Management ,(E) for Earnings, (L) for Liquidity and (S) for Sensitivity to Market Risk.

OSMOS: Off-site Monitoring and Surveillance System.

Free market: A market economy based on supply and demand with little or no government control.

Retail banking: It is mass-market banking in which individual customers use local branches of larger commercial banks.

Eurobond: A bond issued in a currency other than the currency of the country or market in which it is issued.

PPP: Purchasing Power Parity is an economic technique used when attempting to determine the relative values of two currencies.

FEMA Act: Foreign Exchange Management Act, it is useful in controlling HAWALA.

Hawala transaction: It’s a process in which large amount of black money is converted into white.

Teaser Loans: It’s a type of home loans in which the interest rate is initially low and then grows higher. Teaser loans are also called terraced loans.

ECB: External Commercial Borrowings, taking a loan from another country. Limit of ECB is $500 million, and this is the maximum limit a company can get.

CBS: Core Banking Solution. All the banks are connected through internet, meaning we can have transactions from any bank and anywhere. (e.g. deposit cash in PNB, Delhi branch and withdraw cash from PNB, Gujarat)

CRAR: For RRB’s it is more than 9% (funds allotted 500 cr) and for commercial banks it is greater than 8% (6000 cr relief package).

NBFCs: NBFC is a company which is registered under Companies Act, 1956 and whose main function is to provide loans. NBFC cannot accept deposit or issue demand draft like other commercial banks. NBFCs registered with RBI have been classified as AssetFinance Company (AFC), Investment Company (IC) and Loan Company (LC).

Which services are taxable?

Now, important to know – not all services are taxable. Only those which are ‘taxable services’ are taxable under service tax!

‘Taxable services’ – means those services which are taxable under the service tax net.

In other words,

Taxable Services = All services + Declared Services – Negative List – Any exemptions

Examples:

i. giving the right to use intellectual property right (declared service)

ii. Services by Chartered Accountants

iii. Services by beauty salons!

iv. Services by advertising agencies

v. Courier services

vi. Event management services etc.

Now you must be wondering if you maternal aunt, who runs a ladies beauty parlour at her home in South Delhi is liable to collect and deposit service tax – take heart!

Service tax liability arises if the total value of services provided in a financial year exceeds Rs, 10,00,000!

SOCIAL SECURITY SCHEMES

On his first visit to West Bengal after becoming Prime Minister of India, Narendra Modi surprised financial analysts by declaring three social security schemes for 1.25 billion people. Now accidental insurance is available at mere Rs.12 for a coverage of

Rs.200,000. Read summary of schemes :

Pradhan Mantri Suraksha Bima Yojna

Eligibility

 18 to 70 years of age

 Having a savings account with a public sector bank

 Insurer allows auto withdrawal for the payment of annual premium

Policy cost and coverage

 Rs.12 per subscriber for a coverage of Rs.2,00,000

Maturity

 Death due to accident or total physical disability due to accident

Pradhan Mantri Jeevan Jyoti Yojana

Eligibility

 18 to 50 years of age

 Having a savings account with a public sector bank

 Insurer allows auto withdrawal for the payment of annual premium 

Input Credit

Input Credit means, if you’ve paid tax on purchase of any good(s) or procurement of any service(s) and – when selling your goods or services you’re required to further pay tax – you can set off your tax payment liability with the tax already paid by you when you

procured your inputs.

Example: You are ‘special muffin manufacturer’. You buy a whole lot of special ingredients to manufacture your muffin – say you bought multi flavoured syrups for the flavours – you had to pay tax (indirect you see!) to procure the syrups.

Now you used these syrups and made your muffins (this is value addition – without the process of baking, adding of ingredients there would be no muffin) – you sell them – but you got to pay tax on the ‘manufactured’ muffins!

So you paid tax when you bought the ingredients (input tax) and when you manufactured/ sold them you paid tax again (output tax) – here, you will get the credit of the input tax paid to decrease your liability of output tax.

This is the Input tax credit system simplified for understanding.

 GST will be levied at every stage of value addition.

 Value addition would mean – applying effort on the goods or services to make worth more. By undergoing a certain process, or set of activities – ‘value’ is being added to the goods or services.

 Under GST – the rate of tax – ‘Revenue Neutral Rate’ or RNR – is set to not exceed 27% combining both central and state tax rates.

 It will bring more people under the indirect taxes net thereby increasing revenue and also dealing with tax evasion and black money issues.

Planning Commission with Niti Aayog

So Why the need felt to replace Planning Commission with Niti Aayog

1. Most of the criticism regarding planning commission was that it thrust his development agenda on states without their active collaboration and not considering their social economic uniqueness. One size fit for all solution was followed by planning commission.

2. Niti Aayog will be more like think tank advising central and state governments on strategic and technical issues across the spectrum of key elements of policy where as in planning commission there was no active participation of stakeholders.

3. In Niti Aayog will have all the state chief ministers and Lt. Governors included in the governing council where as in planning commission state chief ministers were not actively involved .

4. The mantra of Niti Aayog is inclusiveness with states as partners ,equality, transparency ,pro people ,empowering which was not visible in planning commission.

Banking and Insurance Quiz

1.Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future?

Bombay Stock Exchange (BSE) 

Indian Bank's Association (IBA) 

Securities & Exchange Board of India (SEBI)

Reserve Bank of India (RBI)

2.Who amongst the following is the author of the book (released recently) "India and Global Financial Crisis :Managing Money and Finance"?

Dr. Bimal Jalan

Dr. C. Rangarajan 

Dr. Manmohan Singh 

Dr. Y.V. Reddy

3.The Reserve Bank of India does not print currency notes of the denomination of

20/-

50/- 

3,000/- 

1,000/-

4.Which of the following is considered as the financial capital of India?

New Delhi 

kolkata 

Ahmedabad 

None of these

5."Micro Credit" means

Loans of small amounts to people in unorganized sector 

Loans to self Help Groups 

Loan amounting rs. 50 lakhs t rs 5 crores to Medium and Small Industries Units 

None of these

Insurance GK Questions

1.What does Collateral Security mean?

Securities in the form of goods pledged for Cash Credits 

Securities given to banks for loans against approved securities 

Securities in the form of shares blue chip companies

Security given to banks over and above the primary security

2.When trading takes place among members of a stock Exchange as create false volumes and rigging the prices of shares, it is known as

Spot Trading

Future Trading

Circular Trading

Insider Trading

3.When two parties make an arrangement to exchange future cash flows, it is called

Options

Arbitrage

Swap

Futures

4.Exporters in India get insurance cover and risk cover from which of the following organizations?

SIDBI

NABARD

ECGC 

RBI

5.The govt. of India does not provide and direct financial assistance to which of the following schemes?

Mahatma Gandhi National Rural Employment Guarantee scheme.

Rural Health mission 

India Aawas Yojana

Jeevan sathi Yojana

Banking and Insurance Quiz

1.For the developing countries of Asia, the international agency which provides soft loans is

International Monetary Fund Asian Development Bank International Development Association World Bank

2.No license from RBI is required for

opening a new bank branch in India opening a new bank branch outside India shifting an existing branch outside the city, village or town shifting an existing branch within the same city, village or town

3.Commercial banks are unique among financial institutions because they

advance loans to business provide insurance to depositors create demand deposits hold saving deposits

4.Financial Year in banks is a period from

January to December May to June April to March January to April

5.“Pure Banking Nothing Else” is a slogan raised by

ICICI Bank HDFC Bank SBI UTI Bank

Banking Awareness Questions

1.The “bank rate “ is

free to fluctuate according to the forces of demand and supply set by the Reserve Bank of India set by the Reserve Bank of India as directed as directed by the Union Ministry of Finance Set by the Reserve Bank of India as directed as directed by the Indian Banks’ Association

2.The term “exchange arbitrage “ is the

arbitration of exchange disputes simultaneous buying selling of foreign exchange to make a profit because interest rates vary in different countries simultaneous purchase of a currency in one market and its sale in another market wit a view to realize profit buying of foreign currency to realize a future profit when it appreciates

3.The law regarding negotiable instruments is contained in

The Bill of Exchange Act, 1881 The Banking Regulation Act, 1949 The Cheques Act, 1881 The Negotiable Instruments Act, 1881

4.“Black Revolution “ is associated with

Tea plantation Coffee Plantation Rubber Plantation Printing Ink

5.“Channel Financing” means:

Financing of supply-delivery chain, i.e. dealer of identified large corporate entities financed by banks Laying of agriculture canals Financing through NBFCs None of the above

GK and Banking Awareness

1.In the matter of handling bills of exchange for collection, the relationship between customer and the bank is

trustee and the beneficiary Principal and agent bailor and bailee None of the above

2.A Scheduled bank is the one which

conforms to the requirement of schedule III of the Banking Regulation Act, 1949 has been declared as a scheduled bank by the Government of India has deposits exceeding Rs . 10 Crore has its name added to the second scheduled of the Reserve Bank of India Act, 1934

3.When a cheque duly signed by the drawer, with particulars written in a hand –writing different from that of the drawer id presented for payment stolen from the drawer and hence, the branch is put on enquiry.

the bank will refuse payment of the cheque as there is a distinct possibility of the cheque signed in blank having been the bank will make the payment provided the cheque is otherwise in order the bank will make payment only to the authorised representative of the drawer None of the above

4.The concept of "Narrow Banking" was recommended by

Khan Committee Nayak Committee Sodhani Committee Tarapore & Narasimham Committee

5.The level of activity at which total revenue cost equals total sale value or when there is a "no profit" or "no loss" situation, it is known as

Break Even Point Operating Profit Gross Profit Net Profit

General Insurance Quiz

1.When a Bank Guarantee is invoked by the beneficiary either in writing or by telex or telegram, the Bank issuing the Guarantee will

have to effect payment without delay or demur have to pay within three working days pay after being satisfied that the beneficiary suffered loss None of the above

2."Claused Bill of Lading" is the one which indicates

No defects in packaging or condition of goods defective condition of package and goods No documents attached to it None of the above

3."Cost Overrun" Means

Remaining constant in Project Cost Escalation in Project Cost Decrease in Project Cost None of the above'

4."Dark Block" is an area where

literacy rate is below 15 percent people below the poverty line are more than 90 per cent underground source of water is not available more than 85 per cent exploitation has taken place on the available underground water

5."Hedging" denotes

Protecting against fluctuations/ uncertainty risk in forex markets Credit risk assessment in respect of advances Speculative buying/selling of foreign currency None of the above

General Knowledge

1.Banks stipulate interest rate on loss and advances based on

Borrower's experience Track record Credit rating None of these

2.Expand 'VIRUS" in computer parlance.

Variable Integrated Risks under Surveillance vital Information Resource Under Siege Very Independent Resource Under Seizure None of the above

3.Expand “SHIPI ".

State Bank Heritage Private Institute SBI Handicapped Standards Board Self Help Promotion Institution None of the above

4.Expand IASB.

International Accounting standards Board Indian Accounting Standards Boards Internal Accounting Standards bureau Indian accounts Standards Board

5.INFINET Stands for

Internal Financial Networking International Financial Networking Indian Financial Network Inland Financial Network