Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations.
41. Which Indian insurance company was the first to launch a Unit Linked Insurance Plan (ULIP)?
[A] ICICI Prudential Life Insurance
[B] LIC of India
[C] Bajaj Allianz Life Insurance
[D] HDFC Life Insurance
Show Answer
Correct Answer: A [ICICI Prudential Life Insurance]
Notes:
ICICI Prudential Life Insurance was the first company to launch a ULIP in India in 2001.
42. Which type of insurance policy guarantees payment of a fixed sum upon the death of the insured or after a specified period?
[A] Term Insurance
[B] Endowment Policy
[C] Critical Illness Policy
[D] Motor Insurance
Show Answer
Correct Answer: B [Endowment Policy]
Notes:
An endowment policy guarantees payment of a fixed sum either upon the death of the insured or after the policy term.
43. Which of the following types of insurance covers the risk of loss of cargo during transportation by road, rail, or air?
[A] Life Insurance
[B] Health Insurance
[C] Marine Insurance
[D] Inland Transit Insurance
Show Answer
Correct Answer: D [Inland Transit Insurance]
Notes:
Inland transit insurance covers the risk of loss or damage to cargo during transportation by road, rail, or air within a country.
44. Which of the following is the primary objective of IRDAI?
[A] To regulate capital markets
[B] To issue government bonds
[C] To promote competition and ensure fair treatment of policyholders
[D] To manage foreign direct investment
Show Answer
Correct Answer: C [To promote competition and ensure fair treatment of policyholders]
Notes:
The primary objective of IRDAI is to promote healthy competition, ensure transparency, and protect the interests of policyholders.
45. What is the role of an insurance broker in the Indian insurance market?
[A] To directly underwrite policies
[B] To represent only one insurance company
[C] To act as an intermediary between the insurer and the insured
[D] To regulate claims settlement
Show Answer
Correct Answer: C [To act as an intermediary between the insurer and the insured]
Notes:
An insurance broker acts as an intermediary between the insurer and the insured, offering policies from multiple insurers to meet the client’s needs.
46. Which of the following organizations provides insurance repository services in India?
[A] SEBI
[B] LIC of India
[C] National Securities Depository Limited (NSDL)
[D] General Insurance Corporation of India (GIC)
Show Answer
Correct Answer: C [National Securities Depository Limited (NSDL)]
Notes:
NSDL is one of the approved entities offering insurance repository services in India, helping policyholders maintain insurance policies electronically.
47. In which year did the Indian insurance sector officially open to private companies?
[A] 1991
[B] 1999
[C] 2000
[D] 2002
Show Answer
Correct Answer: C [2000]
Notes:
The insurance sector in India was opened to private companies in 2000, following the recommendations of the Malhotra Committee and the passage of the IRDA Act.
48. Which regulatory authority in India oversees mergers and acquisitions to ensure fair competition?
[A] Reserve Bank of India (RBI)
[B] Securities and Exchange Board of India (SEBI)
[C] Competition Commission of India (CCI)
[D] Ministry of Finance
Show Answer
Correct Answer: C [Competition Commission of India (CCI)]
Notes:
The Competition Commission of India (CCI) oversees mergers and acquisitions in India to ensure that they do not harm fair competition in the market.
49. Which of the following is a common reason for corporate restructuring?
[A] To improve profitability
[B] To expand business operations
[C] To reduce financial distress
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Corporate restructuring is undertaken for various reasons, including improving profitability, expanding operations, and reducing financial distress.
50. What is the primary difference between CBDCs and cryptocurrencies?
[A] CBDCs are issued by governments, while cryptocurrencies are decentralized
[B] CBDCs have no legal backing
[C] Cryptocurrencies are issued by banks
[D] CBDCs are not used for payments
Show Answer
Correct Answer: A [CBDCs are issued by governments, while cryptocurrencies are decentralized]
Notes:
CBDCs are issued by governments or central banks and have legal backing, while cryptocurrencies are decentralized and not backed by any central authority.
