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LIC AAO Mock Test
A timed 25-question mock for the LIC Assistant Administrative Officer Examination covering data interpretation, logical reasoning, english grammar, economy & banking awareness, accounting & finance. Answer, submit and review every question with its explanation; set negative marking to match your exam’s current scheme.
LIC AAO mock test
25 questions · 1 mark each · the timer starts with your first answer and the test submits itself when time runs out.
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Q1.Data InterpretationThe average of 7 numbers is 68. If 90 is added, what is the new average?
Answer: A — 70.75
Old total = 7 × 68 = 476. New total = 476 + 90 = 566; new average = 566/8 = 70.75.
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Q2.Logical ReasoningFind the next letter: E, I, M, Q, ?
Answer: D — U
The letters advance by 4 each time (skip 3).
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Q3.English GrammarChoose the correct option: She has been working here ___ 2019.
Answer: A — since
Use “since” with a point in time (2019) and “for” with a duration.
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Q4.Economy & Banking AwarenessMonetary policy is formulated in India by the:
Answer: B — Monetary Policy Committee (MPC) of RBI
The six-member MPC sets the policy repo rate.
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Q5.Accounting & FinanceA company’s net income divided by shareholders’ equity is:
Answer: C — ROE
Return on equity = net income ÷ shareholders’ equity.
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Q6.Data InterpretationThe average of 8 numbers is 72. If 110 is added, what is the new average?
Answer: B — 76.22
Old total = 8 × 72 = 576. New total = 576 + 110 = 686; new average = 686/9 = 76.22.
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Q7.Logical ReasoningIf DOG is coded as EPH, how is STAR coded?
Answer: B — TUBS
Each letter moves 1 place forward in the alphabet (DOG → EPH), so STAR → TUBS.
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Q8.English GrammarChoose the correct option: The train ___ by the time we reach the station.
Answer: A — will have left
An action completed before a future point takes the future perfect: “will have left”.
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Q9.Economy & Banking AwarenessStagflation is a combination of:
Answer: B — Stagnant growth and high inflation
Stagflation = stagnant economic growth + high inflation + often high unemployment.
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Q10.Accounting & FinanceWhat is the present value of ₹15,000 received in 4 years at a 5% discount rate?
Answer: C — ₹12,341
PV = FV/(1 + r)ⁿ = 15,000 / 1.05^4 = ₹12,341.
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Q11.Data InterpretationSales (units): 2021: 720 · 2022: 590 · 2023: 380 · 2024: 340 · 2025: 490. What was the percentage change in 2022 over 2021?
Answer: B — -18.06%
Change = 590 − 720 = -130; ÷ 720 × 100 = -18.06%.
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Q12.Logical ReasoningFind the next letter: A, D, G, J, ?
Answer: D — M
The letters advance by 3 each time (skip 2).
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Q13.English GrammarChoose the correct option: Scarcely ___ the room when the lights went out.
Answer: C — had I entered
Negative adverbs at the start (scarcely, hardly) cause inversion: “had I entered”.
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Q14.Economy & Banking AwarenessWhich body regulates the securities market in India?
Answer: A — SEBI
The Securities and Exchange Board of India (SEBI).
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Q15.Accounting & FinanceRevenue is recognised under accrual accounting when:
Answer: D — It is earned (performance obligation satisfied)
Under IFRS 15 / ASC 606 revenue is recognised as obligations are satisfied.
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Q16.Data InterpretationThe price of an item changes from ₹100 to ₹120. What is the percentage change?
Answer: A — 20% increase
Change = 20 on a base of 100: 20/100 × 100 = 20% increase. Always divide by the ORIGINAL value.
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Q17.Logical ReasoningWhich number is the odd one out: 11, 33, 39, 65?
Answer: A — 11
33, 39, 65 are composite; 11 is prime.
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Q18.English GrammarChoose the correct article: He is ___ honest man.
Answer: B — an
“Honest” begins with a vowel sound (silent h), so “an”.
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Q19.Economy & Banking AwarenessOpportunity cost is:
Answer: B — The value of the next best alternative forgone
It is the benefit given up by choosing one option over the next best.
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Q20.Accounting & FinanceFind the compound interest on ₹32,000 at 20% per annum for 3 years, compounded annually.
Answer: C — ₹23,296
A = P(1 + R/100)^T = 32,000 × 1.20^3 = 55,296; CI = A − P = ₹23,296.
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Q21.Data InterpretationThe average of 11 numbers is 42. If 53 is added, what is the new average?
Answer: D — 42.92
Old total = 11 × 42 = 462. New total = 462 + 53 = 515; new average = 515/12 = 42.92.
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Q22.Logical ReasoningWhat is the angle between the hour and minute hands of a clock at 12:10?
Answer: A — 55°
Angle = |30H − 5.5M| = |30×12 − 5.5×10| = 305°; the smaller angle is 360 − that = 55°.
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Q23.English GrammarChoose the correct option: The committee ___ divided in their opinions.
Answer: C — were
When members of a collective noun act individually (divided opinions), a plural verb is used: “were”.
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Q24.Economy & Banking AwarenessWhich instrument is used for transferring money electronically in real time for large values in India?
Answer: C — RTGS
RTGS settles individual large-value transactions in real time.
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Q25.Accounting & FinanceIf interest rates rise, the price of an existing fixed-rate bond generally:
Answer: D — Falls
Bond prices move inversely to market interest rates.
How the mock test works
- The timer starts with your first answer; the test submits itself when time runs out.
- Choose the negative marking that matches your exam (many Indian exams deduct ¼ or ⅓ of a mark — check the official notification).
- After submitting you get your score, accuracy, time taken and a topic-wise breakdown, then every explanation.
- “New mock test” builds another paper — calculation questions get new numbers.
About LIC AAO
LIC Assistant Administrative Officer Examination — conducted by Life Insurance Corporation of India (LIC). Recruits Assistant Administrative Officers, including insurance and financial market awareness.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
LIC AAO practice topics
| Topic | Section | Question source |
|---|---|---|
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |
| Accounting & Finance | Finance | Calculated + question bank |