Question 1.
_____ arrangement by which a bank allows its customer to borrow money up to the specified limit.
(a) Cash Credits
(b) Pass Book
(c) Cash Book
(d) Account Payee

Answer

Answer: (a) Cash Credits

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Question 2.
Insurance is a contract between _________ and ________
(a) Insurer, insured
(b) Agent, insurance
(c) Insured, insurance
(d) Insurer, family

Answer

Answer: (a) Insurer, insured

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Question 3.
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

Answer: (a) Principle of Indemnity

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Question 4.
In which year Insurance Act was amended in India?
(a) 1940
(b) 1928
(c) 1938
(d) 1945

Answer

Answer: (c) 1938

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Question 5.
Which of the following is not applicable in life insurance contracts?
(a) Indemnity contract
(b) Unilateral contracts
(c) Conditional Contracts
(d) None of the above

Answer

Answer: (a) Indemnity contract

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Question 6.
In which year Children’s Money Back plan was introduced?
(a) 1985
(b) 1988
(c) 1995
(d) 1989

Answer

Answer: (c) 1995

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Question 7.
It is a type of saving bank account in which excess of a particular limit gets automatically transferred to a fixed deposit account.
(a) Multiple deposit option account
(b) Current account
(c) Recurring deposit account
(d) Salary account

Answer

Answer: (a) Multiple deposit option account

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Question 8.
________ banks are included in the second schedule of RBI.
(a) Scheduled
(b) State
(c) Commercial
(d) Corporation

Answer

Answer: (a) Scheduled

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Question 9.
Bankers are not only dealers of money but also leaders in
(a) Industry development
(b) Service development
(c) Trade development
(d) Economic development

Answer

Answer: (d) Economic development

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Question 10.
In which year Crop Insurance scheme was introduced in India?
(a) 1978-79
(b) 1985-86
(c) 1948-49
(d) 1990-91

Answer

Answer: (b) 1985-86

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Question 11.
From the following which of these is covered under Marine Insurance?
(a) Whole Life policy
(b) Liability Insurance
(c) Endowment policy
(d) Act only

Answer

Answer: (b) Liability Insurance

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Question 12.
The fee charged by the insurer on account of providing services is called
(a) Premium
(b) Profit
(c) Dividend
(d) Instalment

Answer

Answer: (a) Premium

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Question 13.
Which of the following is covered under the life Assurance policy?
(a) Money Back Policy
(b) Declaration policy
(c) Act only
(d) Cargo Insurance

Answer

Answer: (a) Money Back Policy

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Question 14.
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 above

Answer

Answer: (c) Cattle insurance

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Question 15.
Which bank is known as Apex Bank of India?
(a) The Reserve Bank of India
(b) The State Bank of India
(c) The Central Bank
(d) The Bank of India

Answer

Answer: (a) The Reserve Bank of India

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Question 16.
The study of communication through touch is ________
(a) Chronemics
(b) Haptics
(c) Proxemics
(d) Semantics

Answer

Answer: (b) Haptics

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Question 17.
Its main function is to control and coordinate the currency and credit policies of our country. Identify the institution mentioned here.
(a) The Reserve Bank of India
(b) The State Bank of India
(c) The Central Bank
(d) The Bank of India

Answer

Answer: (a) The Reserve Bank of India

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Question 18.
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 above

Answer

Answer: (a) Crossed Cheque

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Question 19.
Which of the following contained one of the earliest applications of insurance principles?
(a) Napoleonic Code
(b) Magna Carta
(c) Code of Hammurabi
(d) Charter of London

Answer

Answer: (c) Code of Hammurabi

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Question 20.
Which of the following element is present in the case of Life Insurance?
(a) Security, Investment
(b) Security
(c) Investment
(d) Profit

Answer

Answer: (a) Security, Investment

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Question 21.
The addition of the words___________ directs the banker to collect the cheque and credit the proceeds to the payee’s account.
(a) Manager
(b) Account payee
(c) Customers
(d) Bank

Answer

Answer: (b) Account payee

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Question 22.
Which of the following has the largest number of branches across India?
(a) Postal offices
(b) Banks
(c) SBI
(d) Insurance companies

Answer

Answer: (a) Postal offices

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Question 23.
Overdraft Facility is available on
(a) Current deposit account
(b) Recurring Deposits
(c) Saving Deposit Account
(d) Fixed deposits

Answer

Answer: (a) Current deposit account

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