LIC HFL Assistant/Associate flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Simple interest formula

SI = (Principal × Rate × Time) / 100. The amount repayable is principal plus interest. Used when interest is calculated only on the original principal for the whole period.

Compound interest formula

Amount = P(1 + R/100)^T, so CI = Amount − Principal. Interest is added to the principal each period, so interest earns interest in later periods.

CI minus SI for two years

For two years at rate R, the difference between compound and simple interest equals P × (R/100)². This shortcut avoids computing both amounts separately.

Speed conversion factor

To convert kilometres per hour to metres per second, multiply by 5/18. To convert metres per second back to kilometres per hour, multiply by 18/5.

Train crossing a platform

Time taken equals the sum of the train's length and the platform's length, divided by the train's speed. Convert speed to metres per second before dividing.

Boats and streams speeds

Downstream speed is boat speed plus stream speed; upstream is boat minus stream. Boat speed is the average of the two, and stream speed is half their difference.

Work together formula

If A finishes a job in x days and B in y days, together they take xy/(x + y) days. Equivalently, add their one-day work rates and invert the sum.

Alligation rule

Ratio of two quantities mixed equals the difference between the mean and the cheaper value, divided by the difference between the dearer value and the mean.

Permutation and combination

nPr = n!/(n − r)! counts ordered arrangements of r items from n. nCr = n!/[r!(n − r)!] counts unordered selections. Probability is favourable outcomes over total outcomes.

Syllogism possibility rule

A conclusion follows only if it holds in every Venn arrangement consistent with the statements. If any valid arrangement makes it false, the conclusion does not follow.

Ranking total formula

If a person ranks nth from the left and mth from the right in a row, the total number of people is n + m − 1. The person is counted twice, so subtract one.

Circular arrangement facing centre

When people face the centre, the immediate left is anticlockwise and the immediate right is clockwise. Reverse both rules when people face outward.

Direction sense distance

Track moves as coordinates from the start. For perpendicular displacements x and y, the straight-line distance is the square root of x² + y².

Inequality chain rule

In A > B ≥ C, the conclusion A > C is valid because the signs point consistently. A conclusion reversing the direction is invalid.

Data sufficiency standard

A statement is sufficient only if it produces a unique answer to the question. If it permits two or more valid answers, it is insufficient.

Subject-verb agreement rule

A singular subject takes a singular verb. Phrases such as along with, as well as, and together with do not change the number of the subject.

Dangling modifier test

An opening participial phrase must describe the subject of the main clause. If the subject cannot perform that action, the modifier dangles and the sentence is wrong.

Affect versus effect

Affect is usually a verb meaning to influence. Effect is usually a noun meaning a result. Effect as a verb means to bring about, as in effect a change.

Fewer versus less

Use fewer with countable plural nouns, such as fewer candidates. Use less with uncountable nouns, such as less time or less money.

Reported question word order

In indirect speech, a reported question uses statement word order and no question mark. For example, he asked where I lived, not where did I live.

Connector meanings

Although and though signal contrast. Therefore and hence signal consequence. Moreover and furthermore signal addition. Nevertheless signals concession despite what was said.

Repo rate

The rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities. It is the key policy rate set by the Monetary Policy Committee.

Cash reserve ratio

The share of a bank's net demand and time liabilities that must be held as cash with the Reserve Bank of India. It earns no interest for the bank.

Statutory liquidity ratio

The minimum share of net demand and time liabilities that a bank must hold in liquid assets such as government securities, cash, and gold.

Inflation target of MPC

The Monetary Policy Committee targets consumer price index inflation of four percent, with a tolerance band of plus or minus two percent.

National Housing Bank

Set up in 1988 under the National Housing Bank Act, 1987, as a wholly owned subsidiary of the Reserve Bank of India, to refinance and promote housing finance institutions.

Non-performing asset threshold

A loan becomes a non-performing asset when principal or interest is overdue for more than ninety days. Further classification is sub-standard, doubtful, and loss asset.

Deposit insurance cover

The Deposit Insurance and Credit Guarantee Corporation insures deposits up to five lakh rupees per depositor per bank, covering both principal and accrued interest.

EMI formula

EMI = P × r × (1 + r)^n / [(1 + r)^n − 1], where P is the loan amount, r the monthly interest rate, and n the number of monthly instalments.

Loan-to-value ratio

The loan amount expressed as a percentage of the property's market value. A higher ratio means the borrower contributes less equity and the lender bears more risk.

Credit score range

CIBIL scores run from 300 to 900. Scores of about 750 and above generally improve home loan approval chances and may attract better interest rates.

Pradhan Mantri Awas Yojana

A housing scheme providing interest subsidy on home loans through the Credit Linked Subsidy Scheme for eligible income groups, aimed at affordable housing for all.

Priority sector lending

A Reserve Bank requirement that banks direct a specified share of adjusted net bank credit to priority sectors including agriculture, micro enterprises, weaker sections, and eligible housing.