CBSE Class 11 Business Studies Business Services MCQs Set 03

Question. Insurance is a contract between _________ and ________
(a) Insurer, insured
(b) Agent, insurance
(c) Insured, insurance
(d) Insurer, family

Answer: A

Question. The study of communication through touch is ________
(a) Chronemics
(b) Haptics
(c) Proxemics
(d) Semantics

Answer: B

Question. Which of the following element is present in the case of Life Insurance?
(a) Security, Investment
(b) Security
(c) Investment
(d) Profit

Answer: A

Question. ________ banks are included in the second schedule of RBI.
(a) Scheduled
(b) State
(c) Commercial
(d) Corporation

Answer: A

Question. Which of the following is not a function of General Insurance?
(a) Risk sharing
(b) Assist in capital formation
(c) Cattle insurance
(d) None of the options

Answer: C

Question. Which of the following element is present in the case of Life Insurance?
(a) Security, Investment
(b) Security
(c) Investment
(d) Profit

Answer: A

Question. Which of the elements is not a part of the communication process?
(a) Decoding
(b) Communication
(c) Channel
(d) Receiver.

Answer: B

Question. The validity period of a demand draft is
(a) One month
(b) Two Months
(c) Three months
(d) Six Months

Answer: C

Question. Policy taken by individuals for their children’s marriage or education expenses are:
(a) Children’ endowment policy
(b) Whole life policy
(c) Endowment life assurance policy
(d) Annuity policy

Answer: A

Question. The functions of a commerce include
(a) acceptance of deposits
(b) granting of loans
(c) Locker facility
(d) all of the options

Answer: D

Question. Which of the following bank acts as a government banker?
(a) Specialized Bank
(b) Cooperative bank
(c) Central bank
(d) Commercial bank

Answer: C

Question. Proximate cause means :
(a) Natural causes.
(B) Human causes
(c) Economic causes
(d) Losses which are caused by perils stated in the policy.

Answer: D

Question. In which year Insurance Act was amended in India?
(a) 1940
(b) 1928
(c) 1938
(d) 1945

Answer: C

Question. The fee charged by the insurer on account of providing services is called
(a) Premium
(b) Profit
(c) Dividend
(d) Instalment

Answer: A

Question. In which year Crop Insurance scheme was introduced in India?
(a) 1978-79
(b) 1985-86
(c) 1948-49
(d) 1990-91

Answer: B

Question. Time utility is created by
(a) Transportation
(b) Banking
(c) Warehousing
(d) Communication

Answer: A

Question. From the following which of this is covered under marine Insurance?
(a) Whole Life policy
(b) Liability Insurance
(c) Endowment policy
(d) Act only

Answer: B

Question. In which year Children’s Money Back plan was introduced?
(a) 1985
(b) 1988
(c) 1995
(d) 1989

Answer: C

Question. This category of the cheque is to be deposited only in the payee’s account.
(a) Crossed Cheque
(b) Bearer Cheque
(c) Both Crossed Cheque and Bearer Cheque
(d) None of the options

Answer: A

Question.__________services are helpful to the business for establishing links with the outside world:
(a) Warehousing
(b) Banking
(c) Insurance
(d) Communication

Answer: D

Question. Which of the following has largest number of branches across India?
(a) Postal offices
(b) Banks
(c) SBI
(d) Insurance companies

Answer: A

Question. In which year Crop Insurance scheme was introduced in India?
(a) 1978-79
(b) 1985-86
(c) 1948-49
(d) 1990-91

Answer: B

Question. Baking and insurance comes under________type of service:
(a) Business
(b) Social
(c) Personal
(d) None of the options

Answer: A

Question. Common function of a bank is:
(a) To accept deposits
(b) To lend money
(c) Earning profit
(d) All of the options

Answer: D

Question. The person who insures the risk is:
(a) Assured.
(B) Insured.
(c) Underwriter.
(d) Party

Answer: C

Question. Which of the following has the largest number of branches across India?
(a) Postal offices
(b) Banks
(c) SBI
(d) Insurance companies

Answer: A

Question. A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?
(a) Principle of Indemnity
(b) Principle of Insurable Interest
(c) Principle of Subrogation
(d) Principle of Contribution

Answer: A

Question. If a person has insured for Rs 4, 00,000. A fire broke out and the actual amount of loss amounted to Rs 2, 50,000. How much amount can he claim:
(a) 4,00,000.
(B) 2,00,000
(c) 2,50,000
(d) None of the options

Answer: C

Question. Two ways in which Electronic fund transfer can be done are:
(a) NEFT and PFT
(b) PFT and NFT
(c) NEFT and RTGS
(d) RTGS and NFT

Answer: C

Question. In case of double insurance, the insurers are to share the losses in proportion to the amount assured by each of them. Which principle of insurance is this?
(a) Proximate Cause
(b) Mitigation
(c) Contribution
(d) Subrogation

Answer: C

Question.The fee charged by the insurer on account of providing services is called
(a) Premium
(b) Profit
(c) Dividend
(d) Instalment

Answer: A

Question. In which type of insurance, loss is not measurable.
(a) Life Insurance
(b) Fire Insurance
(c) Marine Insurance
(d) Burglary Insurance

Answer: A

Fill in the Blanks:

Question. Without insurable interest the contract of Life Insurance is ______________.
Answer: void

Question. John took a health insurance policy. At the time of taking policy, he was a smoker and he didn’t disclose this fact. He got cancer. Insurance company won’t pay anything as John didn’t reveal the important facts. John has violated the insurance principle of______________
Answer: utmost good faith

Question. Principle of indemnity is not applicable to ______________.
Answer: Life Insurance

Question. The principle of insurance that gives right to an insurer to stand in place of the insured after settlement is called ______________.
Answer: subrogation

Question. Written contract between the insured and the insurer is known as______________.
Answer: Policy

True / False:

Question. Crossed Cheques are to be deposited only in the payees account.
Answer: True

Question. Foreign exchange bank is a type of specialized bank.
Answer: True

Question. Load on branches of the banks can be reduced by e-banking .
Answer: True

Question. Buying and selling of shares and debentures on instructions is a service provided by Central Bank.
Answer: False

Question. Savings account deposits can be withdrawn to the extent of the balance at any time without any prior notice.
Answer: False

Question. What is Banking?
Answer: A bank is a financial institution authorized to receive deposits and make loans. Banks may also give financial services, such as currency exchange, wealth management, and safe deposit boxes.
There are 2 types of banks. Namely, commercial/retail banks and investment banks.

Question. What is Insurance?
Answer : Insurance is a contract, embodied by policy, in which an individual or entity receives financial security or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

Question. Expand RTGS and NEFT.
Answer : RTGS – Real Time Gross Settlement
NEFT – National Electronic Funds Transfer

Question. What are the types of warehouses?
Answer : - Private warehouse
- Public warehouse
- Bonded warehouse
- Government warehouse
- Cooperative warehouse

Question. Mention 6 functions of warehousing.
Answer : Functions of warehousing:
- Consolidation
- Stockpiling
- Value-added services
- Price stabilisation
- Financing
- Break the bulk