LIC AAO English Question Paper, Syllabus & Pattern 2016

The LIC AAO Examination was conducted on 12 May, 2013. The solved question paper provided here covers all segments namely General Knowledge and Current Affairs, Reasoning Ability, Quantitative Aptitude, Computer KnowledgeEnglish Language etc. Solve the questions now and be better prepared for upcoming LIC Assistant Administrative Officer exams.


Directions (1-10) : Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.
Giving loans to impoverished women to make ceramics or to farmers to buy milk cows were not seen as great business. Microfinance was an industry championed by anti-poverty activists. Today it is on the verge of a revolution, with billions of dollars from big banks, private-equity shops and pension funds pouring in, driving growth of 30% to 40% this year alone. In 1998, a non-profit microfinance organisation in Peru, converted into bank (called Mibanco). This demonstrated that the poor are good risks who repay loans on time and getting them together, not only chips away at poverty but also turns a profit. The success of Mibanco has piqued the interest of commercial banks, which had previously shunned the country's poor. Now big banks are going after Mibanco's clients with low-rate loans and realising it takes special know-how to work with the unbanked – are hiring away Mibanco's staff.

But with the emergence of players who are only out for profit, microfinance schemes could end up milking the poor. This could happen in countries where lenders don't have to disclose interest rates. When a Mexican microfinancier went public, revealing its. loans had rates of about 86% annually the Consultative Group, to Assist the Poor (CGAP) criticised it for putting shareholders ahead of clients. The pressure of turn a profit also forces micro- financiers to change their business models in ways that depart from the industry's core mission : to help poor people lead better lives. Such shifts have caused the average loan size to triple. Moreover smaller loans being costlier to service, a lower percentage of loans go to women because they tend to take out smaller sums. According to CGAP, with the flood of new large entities there is the risk that a large percentage of cross-border funds go to Latin America and eastern Europe, the world's most developed microfinance markets. "The poorest of the world's poor, who are predominantly in Asia and Africa get left out," says the CEO of the nonprofit Grameen Foundation, which helps develop micro finance institutions.

Segmenting the industry, might be worthwhile if it allows more of the poor to get access to credit. Multinational corporations could take the top microfinance institutions to the next level, and the remainder could be the responsibility of development groups and regional banks. Yet making loans to poor people is hardly a poverty cure. Property rights and the rule of law matter too. One cannot overidealize what microfinance alone can do. Most nonprofits started with lending simply because local laws prohibited nonbanks from offering deposit accounts. With an increase in competition and marketing efforts, poverty - alleviation experts are concerned that people will be talked into loans they wouldn't otherwise want. For example, organisations like Mibanco are providing consumer loans. There is nothing wrong with buying TV s and microwaves on credit, but certain markets, like Mexico, have been flooded with loans that have nothing to do with providing capital to aspiring entrepreneurs — just increasing household debt.

1. What does the transformation of Peru's non-profit organisation into bank illustrate?
(A) To compete with commercial banks, microfinance institutions should convert into banks and offer a wide variety of services.
(B) Microfinance institutions turn higher profits as banks since interest rates on loans are at their discretion.
(C) The poor prefer to go to large banks rather than NGOs to obtain loans.
(a) None (b) Both (A) and (B) (c) All (A), (B) and (C) (d) Only (A) (e) None of these (Ans : d)

2. Why did most microfinance institutions initially provide only credit services?
(a) They were unable to compete with the interest rates offered on deposits by commercial banks.
(b) They have to operate purely on a non-profit basis.
(c) Government restrictions prevented them from offering additional services.
(d) To ensure the poor have access to modem necessities like microwaves.
(e) None of these (Ans : b)

3. What was the impact of the non disclosure of their interest rates by lending institutions?
(a) The government issued sanctions against such firms. (b) Shareholder's interests were not protected
(c) More microfinance institutions were motivated to go public. (d) The poor were exploited.
(e) None of these (Ans : d)

4. What is CGAP's fear with respect to new entities providing micro finance ?
(a) NGO will be unable to survive in an environment of cut throat competition
(b) The poor will hesitate to take advantage of credit facilities because of the formalities involved.
(c) The poor in the developed world will be overlooked.
(d) The interests of the most deserving among the poor will be neglected.
(e) Shareholders interest will be ignored. (Ans : d)

5. What is the author's opinion about the competition for customers among micro financiers ?
(a) It benefits the poor by providing them with loans would have otherwise not had access to.
(b) It is futile since the poor have to pay high rates of interest on property loans.
(c) It is not beneficial since firms waste their profits on marketing rather than helping the poor.
(d) It is a disadvantage since microfinanciers use any means possible to recover loans.
(e) None of these (Ans : e)

Directions (6-8) : Choose the word which is most similar in meaning to the word printed in bold as used in the passage.
(a) Absent (b) Retirement (c) Divide (d) Expire (e) Vary (Ans : a)

(a) Provoked (b) Irritated (c) Disturb (d) Offended (e) Fascinated (Ans : e)

(a) Lend (b) Crossroad (c) Ascent (d) Slope (e) Threshold (Ans : e)

Directions (9-10) : Choose the word which is most opposite in meaning to the word printed in bold as used in the passage.
(a) Uninterested (b) Ungrateful (c) Anxious (d) Miserable (e) Fraudulent (Ans : a)

10. CORE
(a) Clear (b) Unnecessary (c) Crust (d) Beside (e) Uncoordinated (Ans : b)

Directions (11-20) : In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (a), (b), (c), (d) and (e). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.
11. To avoid ………., there is a need for ………. planning of the project.
(a) cancellation, broad (b) problem, deliberate (c) pitfalls, systematic (d) inconvenience, convenient (e) losses, temporary (Ans : c)

12. A good management will decide not only the ………. for equipment but also its ………. for deciding priorities.
(a) need, urgency (b) usefulness, utility (c) cost, value (d) requirement, necessities (e) technology, methodology (Ans : a)

13. ………. appears to be a small error in the beginning may turn out to be a ………. in the long run.
(a) It, disaster (b) What, blunder (c) That, debacle (d) It, slip (e) What, incident (Ans : b)

14. Being very ………. in nature, he always uses his ………. skills.
(a) adamant, soft (b) polite, basic (c) humble, experimental (d) pushy, persuasive (e) mild, aggressive (Ans : e)

15. Demand and supply do not ………. the same relationship as the one that ………. between height and weight.
(a) possess, has (b) incur, is (c) defend, volunteers (d) bear, borne(e) have, exists (Ans : d)

16. If the system ………. to yield the desired result, try to ………. the whole procedure in the given sequence.
(a) entities, dump (b) ignores, reproduce (c) fails, reoperate (d) imitates, generate (e) equips, encompass (Ans : c)

17. He is so ………. in his approach that not a single point ever ………. his attention.
(a) meticulous, escapes (b) casual, erodes (c) fanatic, brings (d) deliberate, attracts (e) nasty, coincides (Ans : a)

18. Generally, ………. students ………. those who are mediocre.
(a) humble, surmount (b) meritorious, surpass (c) bright, overestimate (d) intelligent, surrender (e) studious, respect (Ans : b)

19. ………. and ………. should not be tolerated in our country which boasts of 'Ahimsa' as its way of life.
(a) Politicking, elections (b) Dishonour, efficiency (c) Lethargy, procrastination (d) Nepotism, selfishness (e) Hatred, violence (Ans : e)

20. He ………. a wrong act because it was ………. for him to do so due to circumstantial forces.
(a) compelled, necessary (b) refused, dangerous (c) did, avoidable (d) committed, inevitable (e) simplified, harmful (Ans : d)

Directions (21-30) : Read each sentence to find out whether there is any grammatical error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error, the answer is (e). i. e. 'No error'. (Ignore the errors of punctuation, if any.)
21. These companies have been asked /(a) to furnish their financial details /(b) and information about /(c) to its board members. /(d) No error (e) (Ans : d)

22. The scheme which will be launched /(a) during the next two years /(b) require an additional investment /(c) of one hundred crores. /(d) No error (e) (Ans : c)

23. Road developers unable /(a) to complete their projects /(b) on time will not be /( c) awarded new ones. /(d) No error (e) (Ans : e)

24. We have taken on /(a) the responsibility of /(b) arranging the required training /(c) and supervise the new staff. /(d) No error (e) (Ans : d)

25. The government has signed /(a) a memorandum of understanding with /(b) the company to set up /(c) a plant in the state. /(d) No error (e) (Ans : e)

26. Owing the new policy /(a) we feel that the targets /(b) set for this year /(c) may not be achieved. /(d) No error (e) (Ans : a)

27. Since the lack of /(a) manpower we cannot /(b) conduct the survey /(c) in rural areas. /(d) No error (e) (Ans : a)

28. Palm oil is very beneficial /(a) and is use to /(b) make products ranging /(c) from soap to biodiesel. /(d) No error (e) (Ans : b)

29. There are only /(a) a few company /(b) which can handle /(c) projects of this magnitude. /(d) No error ( e) (Ans : b)

30. The data shows that /(a) the unemployment rate has /(b) raised to 6.1 per cent /(c) the highest in five years. /(d) No error (e) (Ans : c)

Directions (31-35) : Rearrange the following six sentences (A), (B), (C), (D), (E) and (F) in the proper sequence to form a meaningful paragraph then answer the questions given below them.
(A) Assuming that all these reasons are true, the fact remains that there is an urgent need to check the accelerated costs and initiate suitable measures.
(B) Some people attribute it to the increasing greediness among the medicos.
(C) The impact of these measures will be visible only after a considerable passage of time.
(D) Health care costs have been skyrocketing in our country.
(E) The measures include yoga classes with emphasis on physical and mental exercises and also change in food habits.
(F) Certain others feel that it is because of drastic changes in people's lifestyle and eating habits.

31. Which of the following would be the FIRST statement after rearrangement?
(a) A (b) B (c) C (4) D (e) E (Ans : d)

32. Which of the following would be the SECOND statement after rearrangement?
(a) A (b) B (c) C (d) D (e) E (Ans : b)

33. Which of the following would be the FOURTH statement after rearrangement?
(a) A (b) B (c) C (d) D (e) E (Ans : a)

34. Which of the following would be the FIFTH statement after rearrangement?
(a) A (b) B (c) C (d) D (e) E (Ans : e)

35. Which of the following would be the SIXTH (LAST) statement after rearrangement?
(a) A (b) B (c) C (d) D (e) E (Ans : c)

Directions (36-40) : In the following passage there are blanks, each of which has been numbered These numbers are printed below the passage and against each, five words are suggested one of which fits the blank appropriately. Find out the appropriate word in each case.
Recently the World Bank and the Asian Development Bank (ADB) released separate reports on poverty. The World Bank Report …(36)… its benchmark of extreme poverty by 25 cents from $1 per person per day to $1.25 per person a day. The ADB announced an even higher benchmark of $1.35 per person a day. These new benchmarks are …(37)… on surveys in the world's poorest countries.
Experts often like to …(38)… that poverty has declined because of economic growth in India and China. This is wrong and misleading. In the past twenty-five years the poverty rate in India has …(39)… by less than one percentage point a year. Whether we use a poverty line of $1 per person per day or $1.25 per person per day makes little …(40)… The number of poor in India is large. The purpose of these statistics is not to dispute them but to study whether the benefits of economic growth are being shared with the poor.

36. (a) heightened (b) announced (c) raised (d) maintained (e) notified (Ans : c)

37. (a) based (b) collected (c) inferred (d) derived (e) gathered (Ans : a)

38. (a) realise (b) claim (c) discover (d) recommend (e) criticise (Ans : b)

39. (a) deplete (b) plunge (c) declined (d) weaken (e) fell (Ans : c)

40. (a) difference (b) effect (c) contrast (d) question (e) option (Ans : a)


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