Banking System, NPA & IBC — Set 13

Correct Answer: B. 20-40%

The correct answer is 20-40%. In ULIPs, typically 20-40% of premium goes to insurance cover, with the remaining invested in market-linked instruments for potential wealth creation. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. 15-20 years

The correct answer is 15-20 years. Endowment policies typically mature in 15-20 years, providing guaranteed maturity benefits along with insurance coverage during the policy period. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. Much lower

The correct answer is Much lower. Term insurance premiums are much lower than endowment policies because they provide only insurance coverage without savings component or maturity benefits. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. 3 years

The correct answer is 3 years. The correct answer is '3 years'. Health insurance plans typically have a 3-year waiting period for pre-existing diseases, after which coverage is provided for treatment of these conditions. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. 5 years

The correct answer is 5 years. Most pension schemes require minimum 5 years of contribution. NPS, however, allows withdrawal after 3 years from the date of opening the account. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: D. MGNREGA

The correct answer is MGNREGA. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is the largest social security scheme by beneficiaries, providing employment to rural populations. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. 6-8%

The correct answer is 6-8%. Public deposit schemes typically offer 6-8% interest rates, providing an alternative to fixed deposits while carrying higher risk. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: A. Access, usage, and quality

The correct answer is Access, usage, and quality. The Financial Inclusion Index measures access to financial services, usage of these services, and quality of services provided to the population. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. RBI

The correct answer is RBI. RBI conducts various financial literacy programs through its outreach initiatives, educating citizens about banking, investments, and financial consumer rights. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. Half-yearly

The correct answer is Half-yearly. RBI publishes the Financial Stability Report twice a year (half-yearly) to assess risks and vulnerabilities in the Indian financial system. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.