Financial Market Awareness for Insurance Exams: Complete Guide

Financial Market Awareness is a separate section in AAO exams carrying 30-40 marks. Here's your comprehensive guide.

Stock Market Basics

BSE (Bombay Stock Exchange): Oldest in Asia, established 1875. Index: Sensex (30 stocks). NSE (National Stock Exchange): Largest by trading volume. Index: Nifty 50 (50 stocks). SEBI regulates both exchanges.

Bond & Debt Market

Government Securities (G-Secs): Issued by RBI on behalf of government. Treasury Bills: Short-term (91, 182, 364 days). Corporate Bonds: Issued by companies. Yield and price move inversely.

Mutual Funds

Types: Equity, Debt, Hybrid, Index. Regulated by SEBI. NAV (Net Asset Value) = Total assets - Total liabilities / Number of units. AMFI is the association of mutual fund houses.

Monetary Policy

Repo Rate: Rate at which RBI lends to banks. Reverse Repo: Rate at which banks park money with RBI. CRR: Percentage of deposits banks must keep with RBI. SLR: Percentage of deposits banks must invest in government securities.