Why mcqs of class 11 Business Studies lesson 4 Business Services is important ?
- these mcqs are important because these questions cover a wide topic of the chapter
- mcqs are easy to understand
- mcqs break the topic in some topic so they are easy to learn
- they give a short revision at the time of class 11 Business Studies exam
How to get pdf of class 11 Business Studies lesson 4 Business Services mcqs
Increasing role of mcqs in board exam
MCQ’S TEST
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CLASS 11 BUSINESS STUDIES CHAPTER - 4 BUSINESS SERVICES OBJECTIVE QUESTIONS MCQ'S TEST
1. DTH services are provided by ________.
none of these
cellular companies
transport companies
Banks
Answer - B
Explanation - DTH (Direct to Home) is again a satellite-based media service provided by cellular companies.
2. The key advantage of public warehousing is:
dealer relationship
none of these
control
Flexibility
Answer - D
Explanation - The flexibility of resources- such as space, labour, and equipment has been one of the primary advantages of public warehousing.
3. Which of the following is not a function of insurance?
Lending of funds
Protection
Risk sharing
Assist in capital formation
Answer - A
Explanation - The function of insurance is protection, providing certainty, risk sharing, assist in capital formation.
4. Which of the following is not applicable in the life insurance contract?
Unilateral contract
Indemnity contract
Conditional contract
None of these
Answer - B
Explanation - The life insurance contract is not a contract of indemnity. The life of a human being cannot be compensated and only a specified sum of money is paid. That is why the amount payable in life insurance on the happening of the event is fixed in advance.
5. CWC stands for ________.
Central Water Corporation
Central Water Commission
Central Warehousing Corporation
Central Warehousing Commission
Answer - C
Explanation - CWC stands for Central Warehousing Commission.
6. Which of the following is covered under the life Assurance policy?
Declaration Policy
Act only
Cargo Insurance
Money Back Policy
Answer - D
Explanation - The money-back policy is covered under the life assurance policy.
7. In which year was the Children's Money Back plan introduced?
1989
1995
1985
1988
Answer - B
Explanation - Children' money back plans are designed to meet the future goals of a child like Higher education, marriage expenses.It was introduced in 1995 with the purpose of development of children.
8. In which year the Insurance Act was amended in India?
1945
1938
1928
1940
Answer - B
Explanation - The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the Insurance sector.
9. Which one is not the principle of insurance?
Principle of Mutual Interest
Principle of utmost Good faith
Principle of Indemnity
Principle of contribution
Answer - A
Explanation - Principle of mutual interest is not the principle of insurance.
10. What is the minimum period of Life Assurance?
5 year
10 years
15 years or more
More than one Year
Answer - D
Explanation - The minimum period for Term policy is 1 Year and more. The death benefit of the policy is paid only if the insured dies during that period. If the insured lives beyond the term period, no death benefit is paid. Typically, there are no cash values or loan values for term life insurance.
11. From the following which of this is covered under Marine Insurance?
A. Act only
B. Liability Insurance
C. Whole Life policy
D. Endowment Policy
Answer - B
Explanation - liability insurance is only responsible for the other party's losses. Your person and your property are unprotected, but the insurance protects you from being held responsible for the other party's damages.
12. From the following which of this is covered under fire Insurance?
Term Policy
Floating
Voyage Policy
Collective Policy
Answer - B
Explanation - Floating Policy is a policy which covers loss by fire caused to property belonging to the same person but located at different places under a single sum and for one premium.
13. From the following which of this is covered under Burglary Insurance?
Jewellery and Valuables
Liability Insurance
Open cover policy
Freight Insurance
Answer - A
Explanation - Burglary insurance is a policy that covers losses resulting from burglary and Jewellery and other valuable items like cash, etc are subject to burglary and hence are covered under Burglary Insurance.
14. In which year Crop Insurance scheme was introduced in India?
1985-86
1978-79
1990-91
1948-49
Answer - A
Explanation - Shri Vishwanath Pratap Singh, Minister of Finance introduced Crop Insurance in budget 1985-86.
15. Bankers are not only dealers of money but also leaders in:
service development
economic development
industry development
trade development
Answer - B
Explanation - Commercial banks are considered not merely as dealers in money but also the leaders in economic development.
16. A bank, which occupies a central position in the monetary and banking system of the country and has a superior financial authority, is ________.
Exchange bank
Co-operative bank.
Central bank
Commercial bank
Answer - C
Explanation - The central bank occupies a central position in the monetary and banking system of the country and has a superior financial authority.
17. When money is deposited for a fixed period its called ________.
current deposit
fixed deposit
savings deposit
recurring deposit
Answer - B
Explanation - A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.
18. Bankers are called as manufacturers of ________.
overdrafts
loans
deposits
Money
Answer - D
Explanation - Banks have several ways of making money besides pocketing the difference (or spread) between the interest they pay on deposits and borrowed money and the interest they collect from borrowers or securities they hold.
19. A cheque in circulation for more than six months is called ________.
ordinary cheque
post-dated cheque
stale cheque
crossed cheque
Answer - C
Explanation - A stale check is a check that is presented to be cashed or deposited at a bank six months or more after the date it was written.
20. Banks are necessary for the effective implementation of ________ policy.
current account
monetary
saving account
Demat
Answer - C
Explanation - Monetary Policy is the government's or central bank's policy for the control of the amount of currency available and the rate at which people can borrow money.
21. Banks accept deposits and ________ money.
lends
distribute
fixed deposits
Reserve
Answer - A
Explanation - A Bank is an institution that accepts deposit of money from the public withdraw-able by cheque and used for lending by way of loan and advances.
22. ________ banks are included in the second schedule of RBI.
State
Scheduled
Corporation
Commercial
Answer - B
Explanation - A scheduled bank, in India, refers to a bank which is listed in the 2nd Schedule of the Reserve Bank of India Act, 1934.
23. The arrangement by which a bank allows his customer to borrow money up to a specified limit is called ________.
Cash Book
Account Payee
Cash Credits
Pass Book
Answer - C
Explanation - Cash credit is a short-term source of finance. Under cash credit, the bank offers its customer to take a loan up to a certain limit.
24. ________ cheque is payable to the person named in the cheque or his order.
Order
Dishonoured
Discounted
Self
Answer - A
Explanation - Order cheque is payable to the person named in the cheque or his order.
25. Addition of the words ________ directs the banker to collect the cheque and credit the proceeds to the payee's account.
Manager
Customers
Bank
Account payee
Answer - D
Explanation - When a cheque is Account payee, it directs the banker to collect the cheque and credit the proceeds to the payee's account.
26. ________ means anything written on the back of a negotiable instrument.
Crossed cheque
Endorsement
Promissory note
Draft
Answer - B
Explanation - Endorsement consists of the signature of the maker (or drawer) payee of a negotiable instrument with the intention of negotiation.
27. Insurance is based on the principle of ________.
co-operation
profit
income
increase sales
Answer - A
Explanation - The main motive of insurance is cooperation. Insurance is defined as the equitable transfer of risk of loss from one entity to another, in exchange for a premium.
28. Insurance is a contract between ________ and ________.
insured, insurance
insurer, family
agent, insurance
insurer, insured
Answer - B
Explanation - Insurance is a contract between an insurer (the firm which insures the risk of loss) and insured (whose risk is insured).
29. Insurance provides financial support to the beneficiary after the death of the policy-holder is called ________.
money-back policy
life insurance
wealth insurance
health insurance
Answer - B
Explanation - Life insurance provides financial support to the beneficiary after the death of the policy-holder.
30. Motor insurance had its beginning in the ________.
India
Pakistan
United Kingdom
Japan
Answer - C
Explanation - A compulsory car insurance scheme was first introduced in the United Kingdom with the Road Traffic Act 1930.