ICMA Foundation-FBEM-Paper test-NCERT-Class 11 Business Studies-Test 1-Business Services_Banking & Commercial Banks
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QUESTION 1 OF 49
Which of the following is an incorrect statement regarding the intangibility of services?
QUESTION 2 OF 49
Since there is no standard tangible product, services have to be performed exclusively each time, which demonstrates the characteristic of ________.
QUESTION 3 OF 49
Which one of the following is an example demonstrating that services cannot be kept in inventory?
QUESTION 4 OF 49
Which of the following accurately distinguishes goods from services based on the feature of 'Inseparability'?
QUESTION 5 OF 49
Which one of the following is an example of personal services?
QUESTION 6 OF 49
A bank stimulates economic activity in the market by dealing in ________.
QUESTION 7 OF 49
Which of the following legislative acts governs commercial banks in India?
QUESTION 8 OF 49
Which of the following is an incorrect statement about Cooperative Banks?
QUESTION 9 OF 49
Which of the following is an example of an institution that provides financial aid to heavy turnkey projects and foreign trade?
QUESTION 10 OF 49
Which of the following institutions controls and coordinates the currency and credit policies of India?
QUESTION 11 OF 49
In a commercial bank, ________ deposits can be withdrawn to the extent of the balance at any time without any prior notice.
QUESTION 12 OF 49
Advances made out of money received through deposits can take various forms. Which of the following is an example of such advances?
QUESTION 13 OF 49
Which of the following cheques can be encashed immediately at the bank counters?
QUESTION 14 OF 49
Regarding the remittance of funds by commercial banks, which of the following statements is incorrect?
QUESTION 15 OF 49
Which of the following is an example of an allied service provided by commercial banks?
QUESTION 16 OF 49
In internet banking, a centralized database that is ________ enables users to perform virtual banking functions without a human operator.
QUESTION 17 OF 49
Under the range of services offered by e-banking, PoS stands for ________.
QUESTION 18 OF 49
The two main ways in which Electronic Fund Transfer (EFT) can be done are NEFT and RTGS. RTGS stands for ________.
QUESTION 19 OF 49
Which of the following is an incorrect statement regarding the benefits of e-banking to customers?
QUESTION 20 OF 49
Which of the following is a direct benefit that e-banking provides to the banks themselves?
QUESTION 21 OF 49
Insurance is a device by which the loss likely to be caused by an uncertain event is spread over a number of persons exposed to it, who pay a small periodic payment known as ________.
QUESTION 22 OF 49
A contract of insurance is a contract of uberrimae fidei, which essentially means it is founded on ________.
QUESTION 23 OF 49
Which of the following scenarios is an example demonstrating the principle of insurable interest?
QUESTION 24 OF 49
Which of the following is an incorrect statement regarding the principles of indemnity or proximate cause?
QUESTION 25 OF 49
If an insured person has taken policies from multiple insurers on the same property, which principle restricts them from recovering more than their actual full loss?
QUESTION 26 OF 49
In life insurance, the insured must have ________ in the life assured at the time when the insurance is affected.
QUESTION 27 OF 49
In which type of life insurance policy does the sum become payable only to the beneficiaries or heirs after the death of the assured?
QUESTION 28 OF 49
Which of the following is an incorrect statement regarding an Endowment Life Assurance Policy?
QUESTION 29 OF 49
Which of the following situations is a prime example for utilizing an Annuity Policy?
QUESTION 30 OF 49
A Children's Endowment Policy is taken by a person to meet the expenses of their children's education or marriage, but no premium is paid if the person dies before the ________ of the policy.
QUESTION 31 OF 49
For a claim under a fire insurance policy to be valid, which of the following must be true?
QUESTION 32 OF 49
In marine insurance, the policy that indemnifies the insured for losses caused by damage to the vessel itself is known as ________ insurance.
QUESTION 33 OF 49
Which of the following is an example of a risk specifically covered by cargo insurance?
QUESTION 34 OF 49
Which of the following is an incorrect statement regarding freight insurance?
QUESTION 35 OF 49
In terms of insurable interest, which of the following represents the requirement for Marine Insurance?
QUESTION 36 OF 49
In India, health insurance exists primarily in the form of ________ policy offered to an individual or to any group.
QUESTION 37 OF 49
Which of the following is an example of coverage under a burglary insurance policy?
QUESTION 38 OF 49
A contract of cattle insurance secures a sum of money to the assured in the event of the death of animals like bulls, cows, and heifers. Which of the following is typically covered as a cause of death?
QUESTION 39 OF 49
Which of the following statements about Crop Insurance is incorrect?
QUESTION 40 OF 49
Under the Amartya Sen Siksha Yojana policy, the insurer indemnifies the insured student in respect of covered expenses if the insured parent sustains bodily injury resulting in death. This cover lasts until which event occurs first?
QUESTION 41 OF 49
For providing postal services, the Indian post and telegraph department has divided the whole country into ________ postal circles.
QUESTION 42 OF 49
Which of the following is an example of an allied postal facility that enables the remittance of money from 185 countries to India?
QUESTION 43 OF 49
Which of the following telecom services relies primarily on network equipment connected through fiber optic cables laid across the length and breadth of the country?
QUESTION 44 OF 49
Which of the following is an incorrect statement about VSAT services?
QUESTION 45 OF 49
In the context of telecom and media, DTH is a satellite-based media service provided by cellular companies. DTH stands for ________.
QUESTION 46 OF 49
Transportation essentially removes the hindrance of ________, making goods available to the consumer from the place of production.
QUESTION 47 OF 49
Which of the following is an example of a warehouse whose owner stands as an agent of the owner of the goods and charges a storage fee to traders and the general public?
QUESTION 49 OF 49
Which of the following statements regarding Government and Cooperative warehouses is incorrect?
QUESTION 50 OF 49
When a warehouse divides the bulk quantity of goods received from a production plant into smaller quantities to be transported to clients, it is performing which function?
Test Complete!
Answer Review
1 Which of the following is an incorrect statement regarding the intangibility of services?
Services are intangible, meaning the quality of the offer can often not be determined before consumption and purchase. NCERT Page 81.
2 Since there is no standard tangible product, services have to be performed exclusively each time, which demonstrates the characteristic of ________.
Inconsistency means there is no standard tangible product, so services must be altered and performed exclusively each time based on different demands. NCERT Page 81.
3 Which one of the following is an example demonstrating that services cannot be kept in inventory?
Services are perishable and cannot be stored; a railway journey will be experienced only when the railways provides it. NCERT Page 81.
4 Which of the following accurately distinguishes goods from services based on the feature of 'Inseparability'?
Services involve simultaneous production and consumption (e.g., eating at a restaurant), while goods allow separation (e.g., purchasing ice cream from a store to eat later). NCERT Page 82.
5 Which one of the following is an example of personal services?
Tourism, recreational services, and restaurants are examples of personal services as they are experienced differently by different customers based on their preferences. NCERT Page 83.
6 A bank stimulates economic activity in the market by dealing in ________.
A bank stimulates economic activity in the market by dealing in money, mobilizing savings, and making funds available. NCERT Page 83.
7 Which of the following legislative acts governs commercial banks in India?
Commercial banks are governed by the Indian Banking Regulation Act 1949, which dictates that banking means accepting deposits for lending or investment. NCERT Page 84.
8 Which of the following is an incorrect statement about Cooperative Banks?
Private sector banks are owned by private promoters; Cooperative banks are governed by the State Cooperative Societies Act. NCERT Page 84.
9 Which of the following is an example of an institution that provides financial aid to heavy turnkey projects and foreign trade?
Specialised banks (such as foreign exchange banks, industrial banks, and development banks) provide financial aid to heavy turnkey projects and foreign trade. NCERT Page 84.
10 Which of the following institutions controls and coordinates the currency and credit policies of India?
The Reserve Bank of India is the central bank of the country, which controls and coordinates currency and credit policies. NCERT Page 85.
11 In a commercial bank, ________ deposits can be withdrawn to the extent of the balance at any time without any prior notice.
Current account deposits can be withdrawn to the extent of the balance at any time without any prior notice. NCERT Page 85.
12 Advances made out of money received through deposits can take various forms. Which of the following is an example of such advances?
Advances can be made in the form of overdrafts, cash credits, discounting trade bills, term loans, and consumer credits. NCERT Page 85.
13 Which of the following cheques can be encashed immediately at the bank counters?
Bearer cheques are encashable immediately at bank counters, whereas crossed cheques must be deposited in the payee's account. NCERT Page 85.
14 Regarding the remittance of funds by commercial banks, which of the following statements is incorrect?
The payee can present the draft on the drawee bank at his place and collect the amount, eliminating the need to travel to the issuing branch. NCERT Pages 85-86.
15 Which of the following is an example of an allied service provided by commercial banks?
Allied services include bill payments, locker facilities, underwriting services, and buying and selling of shares and debentures on instructions. NCERT Page 86.
16 In internet banking, a centralized database that is ________ enables users to perform virtual banking functions without a human operator.
The bank has a centralized data base that is web-enabled, allowing users to connect via a PC and browser to perform banking functions. NCERT Page 86.
17 Under the range of services offered by e-banking, PoS stands for ________.
PoS stands for Point of Sales in the range of e-banking services. NCERT Page 87.
18 The two main ways in which Electronic Fund Transfer (EFT) can be done are NEFT and RTGS. RTGS stands for ________.
RTGS stands for Real Time Gross Settlement, which is a method of electronic bank transfer. NCERT Page 87.
19 Which of the following is an incorrect statement regarding the benefits of e-banking to customers?
E-banking offers greater customer satisfaction by providing unlimited access to the bank, not limited by the walls of the branch. NCERT Pages 87-88.
20 Which of the following is a direct benefit that e-banking provides to the banks themselves?
E-banking provides benefits to the bank by establishing a centralized database and reducing the load on branches by taking over some accounting functions. NCERT Page 88.
21 Insurance is a device by which the loss likely to be caused by an uncertain event is spread over a number of persons exposed to it, who pay a small periodic payment known as ________.
Insurance involves a substitution of a small periodic payment (premium) for a risk of a large possible loss. NCERT Page 88.
22 A contract of insurance is a contract of uberrimae fidei, which essentially means it is founded on ________.
A contract of insurance is a contract of uberrimae fidei, i.e., a contract found on utmost good faith. Both the insurer and the insured must display this towards each other. NCERT Page 89.
23 Which of the following scenarios is an example demonstrating the principle of insurable interest?
Insurable interest requires pecuniary interest; a trustee holding property on behalf of others has an insurable interest in the property. NCERT Page 90.
24 Which of the following is an incorrect statement regarding the principles of indemnity or proximate cause?
The principle of indemnity states that an insurer undertakes to compensate for actual loss, but this principle is not applicable to life insurance. NCERT Page 90.
25 If an insured person has taken policies from multiple insurers on the same property, which principle restricts them from recovering more than their actual full loss?
The principle of contribution implies that in case of double insurance, insurers share the losses, and the insured cannot recover more than the actual loss. NCERT Page 91.
26 In life insurance, the insured must have ________ in the life assured at the time when the insurance is affected.
Without insurable interest, the contract of insurance is void; it must be present at the time when the insurance is affected. NCERT Page 93.
27 In which type of life insurance policy does the sum become payable only to the beneficiaries or heirs after the death of the assured?
In a Whole Life Policy, the amount is not paid before the death of the assured; the sum becomes payable only to the beneficiaries or heirs. NCERT Page 94.
28 Which of the following is an incorrect statement regarding an Endowment Life Assurance Policy?
An endowment policy matures after a limited number of years or upon attaining a particular age, not solely upon death. NCERT Page 94.
29 Which of the following situations is a prime example for utilizing an Annuity Policy?
Under an annuity policy, the assured sum is payable in monthly, quarterly, half-yearly, or annual installments after a certain age, useful for those preferring a regular income. NCERT Page 94.
30 A Children's Endowment Policy is taken by a person to meet the expenses of their children's education or marriage, but no premium is paid if the person dies before the ________ of the policy.
The agreement states no premium will be paid if the person entering the contract dies before the maturity of the policy. NCERT Page 95.
31 For a claim under a fire insurance policy to be valid, which of the following must be true?
A claim for loss by fire must satisfy two conditions: there must be actual loss, and the fire must be accidental and non-intentional. NCERT Page 95.
32 In marine insurance, the policy that indemnifies the insured for losses caused by damage to the vessel itself is known as ________ insurance.
Ship or hull insurance is for indemnifying the insured for losses caused by damage to the ship because the ship is exposed to many dangers at sea. NCERT Page 96.
33 Which of the following is an example of a risk specifically covered by cargo insurance?
Cargo insurance covers risks to the goods (cargo) being transported, such as theft, lost goods at port, or on voyage. NCERT Page 96.
34 Which of the following is an incorrect statement regarding freight insurance?
Freight insurance is for reimbursing the loss of freight to the shipping company, meaning the shipping company is the insured. NCERT Page 97.
35 In terms of insurable interest, which of the following represents the requirement for Marine Insurance?
In marine insurance, insurable interest must exist at the time of loss but is not necessary at the time when the policy was taken. NCERT Page 97-98.
36 In India, health insurance exists primarily in the form of ________ policy offered to an individual or to any group.
In India, presently the health insurance exists primarily in the form of Mediclaim policy offered to an individual or to any group. NCERT Page 101.
37 Which of the following is an example of coverage under a burglary insurance policy?
Burglary insurance covers loss of damages of household goods and properties due to theft, larceny, burglary, and house-breaking. NCERT Page 101.
38 A contract of cattle insurance secures a sum of money to the assured in the event of the death of animals like bulls, cows, and heifers. Which of the following is typically covered as a cause of death?
Cattle insurance is a contract against death resulting from accident, disease, or pregnant condition. NCERT Page 102.
39 Which of the following statements about Crop Insurance is incorrect?
Crop insurance covers the production of rice, wheat, millets, oil seeds, and pulses; there is no statement limiting it exclusively to tea and coffee. NCERT Page 102.
40 Under the Amartya Sen Siksha Yojana policy, the insurer indemnifies the insured student in respect of covered expenses if the insured parent sustains bodily injury resulting in death. This cover lasts until which event occurs first?
The indemnity lasts till the expiry date of the policy or completion of the duration of the covered course, whichever occurs first. NCERT Page 102.
41 For providing postal services, the Indian post and telegraph department has divided the whole country into ________ postal circles.
The whole country has been divided into 22 postal circles to manage the day-to-day functioning of various post offices. NCERT Page 99.
42 Which of the following is an example of an allied postal facility that enables the remittance of money from 185 countries to India?
International Money Transfer through collaboration with Western Union enables remittance of money from 185 countries to India. NCERT Page 99.
43 Which of the following telecom services relies primarily on network equipment connected through fiber optic cables laid across the length and breadth of the country?
Fixed line services utilize network equipment primarily connected through fiber optic cables laid across the length and breadth of the country. NCERT Page 100.
44 Which of the following is an incorrect statement about VSAT services?
VSAT offers the assurance of reliable and uninterrupted service that is equal to or better than land-based services. NCERT Page 100.
45 In the context of telecom and media, DTH is a satellite-based media service provided by cellular companies. DTH stands for ________.
DTH stands for Direct to Home. NCERT Page 100.
46 Transportation essentially removes the hindrance of ________, making goods available to the consumer from the place of production.
Transportation removes the hindrance of place, i.e., it makes goods available to the consumer from the place of production. NCERT Page 101.
47 Which of the following is an example of a warehouse whose owner stands as an agent of the owner of the goods and charges a storage fee to traders and the general public?
Public warehouses can be used by any member of the public upon payment of a fee, and the owner stands as an agent of the owner of the goods. NCERT Page 104.
49 Which of the following statements regarding Government and Cooperative warehouses is incorrect?
Cooperative warehouses are set up by cooperative societies to serve their own members, not to maximize profit for private multi-brand companies. NCERT Page 105.
50 When a warehouse divides the bulk quantity of goods received from a production plant into smaller quantities to be transported to clients, it is performing which function?
Break the bulk is the function of dividing the bulk quantity of goods received from production plants into smaller quantities for transport. NCERT Page 105.