MCQOPTIONS
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MCQOPTIONS
This section includes 160 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
One of the main aim of a Central Bank is to control inflation, what does inflation mean? |
| A. | Saving income |
| B. | Increase export |
| C. | Maintain foreign currency |
| D. | Rising Price |
| Answer» E. | |
| 52. |
When the cash reserve ratio (CRR) is increased by the RBI, it will: |
| A. | Increase the supply of money in the economy |
| B. | Decrease the supply of money in the economy |
| C. | No impact on the supply of money in the economy |
| D. | Initially increase the supply but later on decrease automatically. |
| Answer» C. No impact on the supply of money in the economy | |
| 53. |
An insurance which is concern with the carrier of goods |
| A. | Cargo Insurance |
| B. | Hull Insurance |
| C. | Road Insurance |
| D. | Marine Insurance |
| Answer» C. Road Insurance | |
| 54. |
The relationship between RBI and the Bank maintaining the currency chest is that of? |
| A. | debtor and creditor |
| B. | principle and agent |
| C. | bailor and bailee |
| D. | none of these |
| Answer» C. bailor and bailee | |
| 55. |
The RBI commenced its operation from 1st April |
| A. | 1955 |
| B. | 1925 |
| C. | 1935 |
| D. | 1945 |
| Answer» D. 1945 | |
| 56. |
Which of the following is not the function of RBI? |
| A. | Acting as banker to the government |
| B. | Keeping of foreign exchange reserve |
| C. | issuing of one rupee notes and coins |
| D. | regulating credit in the country |
| Answer» D. regulating credit in the country | |
| 57. |
The RBI was nationalized in |
| A. | 1948 |
| B. | 1949 |
| C. | 1950 |
| D. | 1951 |
| Answer» C. 1950 | |
| 58. |
The policy which cover against bodily injury resulting in death or disablement arising from an accident that has been caused by external violent and visible means is: |
| A. | Personal accident insurance |
| B. | Burglary Insurance |
| C. | Burglary and house breaking insurance |
| D. | None of the above |
| Answer» B. Burglary Insurance | |
| 59. |
Usually, in public sector banks, government holdings are more than |
| A. | 40% |
| B. | 50% |
| C. | 60% |
| D. | 55% |
| Answer» C. 60% | |
| 60. |
A Central Bank is the sole authority for |
| A. | Printing and Issuing currency note |
| B. | Lending to public |
| C. | Accepting deposits from customer |
| D. | Issuing cheques |
| Answer» B. Lending to public | |
| 61. |
_________is an instrument which is used for transfer of funds |
| A. | Cheque book |
| B. | Demand draft |
| C. | Pass book |
| D. | None |
| Answer» C. Pass book | |
| 62. |
____________caters specifically to the transportation of goods or merchandise packed or in bulk and shipped either by sea, air or land. |
| A. | Hull insurance |
| B. | Cargo insurance |
| C. | Liability insurance |
| D. | Business insurance |
| Answer» C. Liability insurance | |
| 63. |
The valid contract, according to Section 10 of Indian Contract Act 1872, must have the following essentialities |
| A. | Agreement |
| B. | Legal consideration |
| C. | Legal object |
| D. | All of the above |
| Answer» E. | |
| 64. |
The right of set-off customers account can be exercised only by a |
| A. | Creditors |
| B. | Debtors |
| C. | Banker |
| D. | Customer |
| Answer» B. Debtors | |
| 65. |
Third party claims are covered under Section ____ of the Motor Vehicle Act, which empowers the State Government to set up a Tribunal to adjudicate on the third party claims |
| A. | Sec 165 |
| B. | Sec 175 |
| C. | Sec 185 |
| D. | Sec 187 |
| Answer» B. Sec 175 | |
| 66. |
Motor insurance provides insurance cover to |
| A. | Private vehicles |
| B. | Commercial Vehicles |
| C. | Motor cycles |
| D. | All of these |
| Answer» E. | |
| 67. |
As per the Insurance Act, every insurance has to prepare at the end of financial year? |
| A. | Balance sheet |
| B. | P/L account |
| C. | Revenue A/c for each class of Insurance business |
| D. | All of these |
| Answer» E. | |
| 68. |
Insurance which provides cover for losses or damages that could occur to goods in transit on sea, rail, road or air is known as |
| A. | Cargo Insurance |
| B. | Hull Insurance |
| C. | Rail Insurance |
| D. | Marine Insurance |
| Answer» B. Hull Insurance | |
| 69. |
Insurance compensate losses |
| A. | By replacing the original asset |
| B. | To the full extent of lost income |
| C. | Only to the extent of insured amount |
| D. | All the above |
| Answer» D. All the above | |
| 70. |
The person or company who bears the risk of providing money at the end of a period of time or losses due to accident are known as |
| A. | insurer |
| B. | insured |
| C. | insurance |
| D. | none of the above |
| Answer» B. insured | |
| 71. |
The spreading of losses incurred by the few over the entire group is called |
| A. | pooling |
| B. | pulling |
| C. | contribution |
| D. | joining |
| Answer» B. pulling | |
| 72. |
Virtual banking is also called |
| A. | Internet Banking |
| B. | Home banking |
| C. | Mobile banking |
| D. | None of these |
| Answer» B. Home banking | |
| 73. |
There are three parties to a bank draft: |
| A. | The drawer bank branch, The drawee bank branch, The payee |
| B. | The drawee bank branch, the payee, the purchaser of the draft |
| C. | The payee, the purchaser of the draft, the drawer bank branch |
| D. | The drawer bank branch, the drawee bank branch, the purchaser of the draft |
| Answer» B. The drawee bank branch, the payee, the purchaser of the draft | |
| 74. |
The card by which you cannot buy a product is: |
| A. | Credit card |
| B. | ATM card |
| C. | Debit card |
| D. | Smart card |
| Answer» C. Debit card | |
| 75. |
Marine insurance may cover loss or damage to the |
| A. | Ship |
| B. | Cargo |
| C. | Any other subject of Marine adventure |
| D. | All of these |
| Answer» E. | |
| 76. |
A marine insurance is a contract of |
| A. | Increment |
| B. | Indemnity |
| C. | Maturity |
| D. | None |
| Answer» C. Maturity | |
| 77. |
Life Insurance Corporation (LIC) of India is a |
| A. | Public sector company |
| B. | Private sector company |
| C. | Partnership Company |
| D. | Joint venture |
| Answer» B. Private sector company | |
| 78. |
The purpose of the crop loan is to facilitate the agriculturists to carry on: |
| A. | Allied activities |
| B. | Irrigation only |
| C. | Seasonal agricultural operations |
| D. | None |
| Answer» D. None | |
| 79. |
The type of card that can be issued by the government to the farmers to meet their cultivation needs and non-farm requirement is |
| A. | Kisan Credit Card |
| B. | ATM Card |
| C. | Kisan Vikas Card |
| D. | None of the above |
| Answer» B. ATM Card | |
| 80. |
The following are the types of life insurance products: |
| A. | Term Insurance |
| B. | Whole life Insurance |
| C. | Endowment policy |
| D. | All of the Above |
| Answer» E. | |
| 81. |
The Imperial Bank was renamed: |
| A. | Reserve Bank of India |
| B. | State Bank of India |
| C. | Bank of Hindustan |
| D. | Punjab National Bank |
| Answer» C. Bank of Hindustan | |
| 82. |
Different types of advances are |
| A. | Loans, cash credit and overdraft |
| B. | Bill discounted and purchased |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» D. None of the above | |
| 83. |
Role and importance of insurance includes: |
| A. | Insurance provides security and safety |
| B. | Re-adjustments needs |
| C. | Key Man Indemnification |
| D. | All of the above |
| Answer» E. | |
| 84. |
The legal obligation to honour cheques is subject to: |
| A. | The cheque being post-dated |
| B. | The cheque being drawn on another bank |
| C. | The cheque being drawn by the depositor |
| D. | The cheque being drawn on the account where there is insufficient balance |
| Answer» D. The cheque being drawn on the account where there is insufficient balance | |
| 85. |
Life insurance made its first appearance in England in the |
| A. | 14th century |
| B. | 15th century |
| C. | 16th century |
| D. | 17th century |
| Answer» D. 17th century | |
| 86. |
Life Insurance Corporation of India headquarter is in |
| A. | Delhi |
| B. | Chennai |
| C. | Guwahati |
| D. | Mumbai |
| Answer» E. | |
| 87. |
When was Oriental Life Insurance Company established? |
| A. | 1818 |
| B. | 1821 |
| C. | 1833 |
| D. | 1815 |
| Answer» B. 1821 | |
| 88. |
Which of the following is not an importance or necessity of Insurance? |
| A. | Reduction of risk |
| B. | Supply of capital |
| C. | Employment opportunity |
| D. | Increase of business expenses |
| Answer» E. | |
| 89. |
Which of the following are the types of Risks |
| A. | Financial and non financial risk |
| B. | Static and dynamic risk |
| C. | Pure and Speculative Risk |
| D. | All of the above |
| Answer» E. | |
| 90. |
Crop insurance covers the risks of |
| A. | Natural fire |
| B. | Storm |
| C. | Drought |
| D. | All of these |
| Answer» E. | |
| 91. |
Overdraft facility can be enjoyed in which account |
| A. | Fixed Deposit A/c |
| B. | Demand Deposit A/c |
| C. | Recurring Deposit A/c |
| D. | Current A/c Deposit |
| Answer» E. | |
| 92. |
The person or company which gets compensation at the end of the period of time for loss due to accident is called |
| A. | insurer |
| B. | insured |
| C. | insurance |
| D. | none of the above |
| Answer» C. insurance | |
| 93. |
General Insurance does not include: |
| A. | Travel Insurance |
| B. | Health Insurance |
| C. | Home insurance |
| D. | None of the above |
| Answer» E. | |
| 94. |
Property insurance may not include |
| A. | Burglary |
| B. | Fidelity |
| C. | Insolvency |
| D. | Sickness |
| Answer» E. | |
| 95. |
The accounting year of the Reserve bank of India come from? |
| A. | 1st july 1st june |
| B. | 1st April 30th March |
| C. | 1st July 30th June |
| D. | 1st January 31st December |
| Answer» D. 1st January 31st December | |
| 96. |
Overdraft withdrawal is a |
| A. | Short term loan |
| B. | Medium term loan |
| C. | Long term loan |
| D. | Grant in aid |
| Answer» B. Medium term loan | |
| 97. |
The head of the Reserve Bank of India is called |
| A. | Chairman |
| B. | President |
| C. | Governor |
| D. | Councillor |
| Answer» D. Councillor | |
| 98. |
The main objective of the Reserve Bank of India is: |
| A. | accept deposits from the public |
| B. | give loans and advances |
| C. | maintain price stability |
| D. | provide remittance facilities |
| Answer» D. provide remittance facilities | |
| 99. |
Overdraft facilities are allowed in |
| A. | Current account only |
| B. | Savings account only |
| C. | Fixed deposit only |
| D. | Recurring deposit only |
| Answer» B. Savings account only | |
| 100. |
The General Insurance Business Nationalization Act was passed in |
| A. | 1952 |
| B. | 1972 |
| C. | 1962 |
| D. | 1982 |
| Answer» C. 1962 | |