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CBSE Questions for Class 11 Commerce Business Studies Business Services Quiz 8 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Business Services
Quiz 8
"The insured must have an interest in the subject matter of insurance." Which principle of insurance is related to this statement?
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0%
Principle of utmost good faith
0%
Principle of insurable interest
0%
Principle of indemnity
0%
Principle of mitigation of loss
Explanation
Principle of Insurable Interest:- According to this principle, the insured must have an insurable interest in the subject matter of the insurance policy. Without the interest, taking an insurance policy is considered a gamble (fraudulent activity), which the law does not permit.
Who can get an overdraft facility from the bank?
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Businessman
0%
Employees
0%
Shareholder
0%
Government
Explanation
A businessman can avail an overdraft facility from the bank in which he has a current account and is allowed to withdraw more than the available balance of deposits in his account. He can overdraw up to a specific limit and for an agreed period. Interest is charged on the amount virtually overdrawn.
"It is binding on both the parties of insurance to disclose all material facts about the subject matter of proposed insurance." Which principle of insurance is associated with this statement?
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0%
Principle of utmost good faith
0%
Principle of insurable interest
0%
Principle of indemnity
0%
Principle of contribution
Explanation
Principle of Utmost Good Faith - According to this principle, insurance is a contract based on faith. The insured and insurer must disclose all the material facts regarding the purpose and the subject matter of the insurance.
A ____________ is called a debtor as well as a creditor.
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0%
Bank
0%
Insurance
0%
Government
0%
None of the above
Explanation
The main functions of a bank are to accept deposits and lend loans. A bank lends what it borrows from others. That is why a bank is called a debtor and a creditor.
"The cause for loss must be related to the purpose of insurance." Which principle of insurance is related to this statement?
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0%
Principle of utmost good faith
0%
Principle of insurable interest
0%
Principle of contribution
0%
Principle of cause proxima
Explanation
Principle of Causa Proxima - According to this principle, the cause or reason for the loss must be related to the subject matter of the insurance contract. If the loss is due to some other cause, then the insurer can deny paying the compensation.
"The insured must take care of his property, for which insurance is taken as if there is no such policy." To which principle of insurance is this related?
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0%
Principle of utmost good faith
0%
Principle of insurable interest
0%
Principle of indemnity
0%
Principle of mitigation of loss.
Explanation
Principle of Mitigation of loss - According to this principle, the insured must take care of his property or subject matter of insurance in the same way as he would take care of it had there been no insurance taken. It is the duty of the insured to make a reasonable effort and take all available precautions to protect the insured property.
Which
of
the
services
listed
below
provides
risk
protection?
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0%
Banking
0%
Transportation
0%
Insurance
0%
Postal and Telecom
Explanation
Insurance is a contract between the insurer and insured in which the insurer agrees to make good the loss, if any, of the insured on the happening of any event mentioned in the contract for a regular payment called the premium. This agreement or contract is in writing and is known as an insurance policy.
Name the central bank of the India.
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Reserve Bank of India
0%
State bank of India
0%
Bank of Baroda
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Bank of India
Explanation
The Reserve Bank of India (RBI) is the central bank of India. It uses monetary policies to maintain financial stability in the country and is responsible for the regulation of the currency and credit systems.
A self-service terminal that provides the customers with facilities of withdrawing and depositing cash, fund transfer, obtaining abridged account statement and closing balance, etc. but only through a unique and secured PIN, is called _______________.
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0%
Real-Time Gross Settlement (RTGS)
0%
National Electronic Fund Transfer (NEFT)
0%
Automated Teller Machine (ATM)
0%
None of the above
Explanation
Automated Teller Machine (ATM):- The person who makes payments and accepts deposits in the bank is known as a teller. The ATM refers to a mechanical and automatic teller that can do the job twenty-four hours a day at less than half the cost of human tellers.
A facility wherein the bank allows its current account holders to withdraw over and above the available balance up to a specified threshold is called ____________.
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0%
Overdraft
0%
Cash Credit
0%
Short Term Loan
0%
Bank Draft
Explanation
Overdraft - Under this arrangement, a customer holding a current account is allowed to withdraw more than the available balance in his account. He can overdraw up to a specific limit and for an agreed period. Interest is charged on the amount virtually overdrawn.
Mr. Kabir desires to have two benefits from his bank account first, to earn higher interest on the deposit, and second, to face the minimum risk of dishonoring a cheque. Which type of account should be opened by him in the Bank?
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Saving Deposit Account
0%
Current Deposit Account
0%
Multiple Option Deposit Account
0%
Fixed Deposit Account
Explanation
Multiple Option Deposit Account - This account offers multiple options to the depositors. It is formed by the combination of 2 or more accounts for availing customized facilities.
"The insured is not allowed to make any profit by selling the damaged property or having the property which was stolen". Which principle of insurance is associated with this statement?
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0%
Principle of utmost good faith
0%
Principle of insurable interest
0%
Principle of indemnity
0%
Principle of subrogation
Explanation
Principle of Subrogation:- According to this principle, after paying the compensation, the insurer steps into the shoes of the insured. In other words, when the insured is compensated for the loss or damage to the property insured by her/him, the right of ownership of such property passes on to the insurer.
The concept of 'Priority Sector Advances' was formulated in _______.
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0%
1960
0%
1962
0%
1968
0%
1978
Explanation
$$1968$$ The priority sector advances which is also known as priority sector lending basically refers to lending to those sectors of the economy which may not get adequate credit or the loan on timely basis so the priority sector advances is an important role which has been given by the Central Bank of India to the banks to provide a specified portion of the bank lending to the specific sectors of the economy so as to give the priority to some of the sectors who do not get the timely credit.
Fourteen commercial banks were nationalised in ________.
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0%
1947
0%
1950
0%
1969
0%
1980
Explanation
National banks refer to the banks owned by the government of India.
Reasons for nationalization being:
The removal of control by a few
Provision of adequate credit facilities to agriculture, small industry and exports
The giving of professional bent to bank management
The encouragement of new classes of entrepreneurs
Amongst the following which is not a short term means of raising capital?
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0%
Loans from financial institutions
0%
Bill of exchange
0%
Promissory note
0%
None of the above
Explanation
Financing can be taken by the organization depending on the requirement. Funds can be raised for short term and long term purposes.
Funds which are required for the day to day operations i.e. working capital requirement is considered as short term funds.
Funds which are require to create the fixed assets in the business are usually taken for a longer duration. These kind of capital is provided by the financial institutions.
The success of E-banking depends upon which of the following?
i. Multi-layer Security System
ii. Risk and Surveillance Management
iii. Updated Flawless Softwares
iv. Stringent Legal Frame-work.
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0%
i and ii
0%
i, ii and iii
0%
ii, iii and iv
0%
i, ii, iii and iv
Explanation
Website of a bank requires multi-layered security system for safeguarding the privacy of the user. It is supported by seamless surveillance and an updated flawless software. They together enhance the user experience.
Legal frame-work is secondary in e-banking as its significance arises only at the time of a dispute.
Hence, for an e-banking to be successful, it requires a multi-layered security system, risk and surveillance management and updated flawless software.
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