For regulation and development of the insurance sector of the country the Government has formed:

Insurance Regulatory and development Authority

Insurance is meant to

Rebuild the assets lost because of specified events

Prevent damage to assets from specified events

Compensate for losses from specified events

Rebuild the assets lost because of specified events

In case of life insurance, insurable interest should exist

At the time of every renewal of premium payment

The principle of utmost good faith is important to ensure

That the premium charged is correct

That no one gets an undue advantage

That there is no adverse selection

All the three factors mentioned above

In the case of life insurance, the principle of insurable interest operates

In the same way as in marine insurance

In the same way as fire insurance

In the same way as in motor insurance

Differently than in other forms of insurances.

Industrial banks are specialised financial institutions established by government to:

Provide necessary training to farmers

Meet short term credit needs of the farmers

Provide Cash Credit and Overdraft facilities

Meet long term finance requirements of industries

Provide necessary training to farmers

Insurance principle does not include

Principle of insurable interest

The principle functions of an insurance contract are

To define the risk that is to be transferred

To state the conditions under which the contract applies

To explain the procedure for settling losses

Co-operative banks which work at metropolitan level are called as?

District central Co-operative bank

Primary Urban Co-operative Bank

Primary Agricultural Credit Societies

Commercial Banks make money available to public by

Issuing money on demand from Savings A/c

Right of lien is the right of a creditor

To appropriate a customer s debt

To sell the goods and securities of the customer in his possession

To retain in his possession goods and securities and not the right to sell

To appropriate a customer s debt

Which of the following are the special relationship of banker and customer:

Banker s obligation to honour cheques

Bankers duty to maintain secrecy of customer s accounts

The primary relationship between a banker and customer starts from the time

when customer visits that bank to made queries

160 + Mcqs in Banking and Insurance in Bachelor of Business Administration (BBA) Page 3 McqOptions

101.	For regulation and development of the insurance sector of the country the Government has formed:
A.	SEBI
B.	Reserve Bank of India
C.	Insurance Regulatory and development Authority
D.	General Insurance Corporation.
Answer» D. General Insurance Corporation.

Discussion

102.	Insurance is meant to
A.	Prevent specified events
B.	Prevent damage to assets from specified events
C.	Compensate for losses from specified events
D.	Rebuild the assets lost because of specified events
Answer» D. Rebuild the assets lost because of specified events

Discussion

103.	In case of life insurance, insurable interest should exist
A.	At the inception of policy
B.	At the time of claim
C.	At the time of every renewal of premium payment
D.	All the above occasions
Answer» B. At the time of claim

Discussion

104.	Which one of this is not a function of commercial bank?
A.	Accepting deposits
B.	Real Estate Development
C.	Paying bills
D.	Safety Box Deposit
Answer» C. Paying bills

Discussion

105.	RRB was set up in the year
A.	1945
B.	1935
C.	1975
D.	1976
Answer» D. 1976

Discussion

106.	Insurable interest is
A.	Defined in the Insurance Act
B.	Defined in the Contract Act
C.	Defined by IRDA
D.	Not defined in any written law
Answer» E.

Discussion

107.	The first public bank was
A.	SBI
B.	Rural Bank
C.	PNB
D.	Bank of Venice
Answer» E.

Discussion

108.	Which one of this is a private sector bank
A.	Canara Bank
B.	Indian Overseas Bank
C.	Punjab National Bank
D.	Induslnd Bank
Answer» E.

Discussion

109.	___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society.
A.	Co-operative B
B.	Commercial B
C.	Industrial B
D.	Development B
Answer» B. Commercial B

Discussion

110.	Extending credit facilities to farmer and small-scale industrial units is the main purpose of
A.	Development banks
B.	EXIM bank
C.	Cooperative bank
D.	Commercial bank
Answer» D. Commercial bank

Discussion

111.	The principle of utmost good faith is meant to protect the interest of
A.	The insurer
B.	The community of policyholders
C.	The shareholders
D.	None of the above
Answer» C. The shareholders

Discussion

112.	The principle of utmost good faith is important to ensure
A.	That the premium charged is correct
B.	That no one gets an undue advantage
C.	That there is no adverse selection
D.	All the three factors mentioned above
Answer» E.

Discussion

113.	Which one of this is not a function of Mobile Banking
A.	Balance Enquiry
B.	Cash Withdrawal
C.	Fund transfer
D.	Bill Payment
Answer» C. Fund transfer

Discussion

114.	Which is the largest private sector bank in India
A.	HDFC Bank
B.	Axis Bank
C.	ICICI Bank
D.	Kotak Mahindra
Answer» B. Axis Bank

Discussion

115.	Agency services rendered by a bank to its customers as their agent include:
A.	Receipt of deposits
B.	Act as executors of wills
C.	Issue letters of credit
D.	Purchase foreign exchange
Answer» C. Issue letters of credit

Discussion

116.	Regional Rural Banks (RRB s) were established in
A.	1965
B.	1955
C.	1975
D.	1985
Answer» D. 1985

Discussion

117.	The Regional Rural Banks were set up in the year
A.	1974
B.	1975
C.	1976
D.	1977
Answer» C. 1976

Discussion

118.	The principle of _______ensures that an insured does not profit by insuring with multipleinsurers.
A.	Subrogation
B.	Contribution
C.	Indemnity
D.	All of the Above
Answer» C. Indemnity

Discussion

119.	In the case of life insurance, the principle of insurable interest operates
A.	In the same way as in marine insurance
B.	In the same way as fire insurance
C.	In the same way as in motor insurance
D.	Differently than in other forms of insurances.
Answer» E.

Discussion

120.	Each Regional Rural Bank is sponsored by:
A.	a private sector bank
B.	a public sector bank
C.	cooperative bank
D.	none of the above
Answer» C. cooperative bank

Discussion

121.	Which is the largest public sector bank in India
A.	State Bank of India
B.	Bank of Baroda
C.	Canara Bank
D.	Indian Overseas Bank
Answer» B. Bank of Baroda

Discussion

122.	In insurance the risk is
A.	certain
B.	uncertain
C.	Both a and b
D.	None
Answer» C. Both a and b

Discussion

123.	Industrial banks are specialised financial institutions established by government to:
A.	Meet short term credit needs of the farmers
B.	Provide Cash Credit and Overdraft facilities
C.	Meet long term finance requirements of industries
D.	Provide necessary training to farmers
Answer» D. Provide necessary training to farmers

Discussion

124.	IRDA was constituted by which of the following committee s recommendations
A.	Singh Committee
B.	Malhotra Committee
C.	Sahota Committee
D.	None of these
Answer» C. Sahota Committee

Discussion

125.	For the purpose of insurance, motor vehicle are classified into ___Categories
A.	Two
B.	Three
C.	Four
D.	Five
Answer» C. Four

Discussion

126.	There is no interest on deposit in this type of account
A.	Current A/c
B.	Concurrent A/c
C.	Recurring A/c
D.	Solvency A/c
Answer» B. Concurrent A/c

Discussion

127.	Insurance principle does not include
A.	Principle of indemnity
B.	Principle of utmost good faith
C.	Principle of knowledge
D.	Principle of insurable interest
Answer» D. Principle of insurable interest

Discussion

128.	The largest and oldest bank still in existence is the
A.	Bank of Baroda
B.	Reserve Bank of India
C.	State Bank of India
D.	Axis Bank
Answer» D. Axis Bank

Discussion

129.	Which of the following is not the function of commercial banks:
A.	issuing currency
B.	transfer of funds
C.	credit creation
D.	all the above
Answer» B. transfer of funds

Discussion

130.	Fire insurance came into existence after the Great Fire of London in
A.	1666
B.	1866
C.	1686
D.	1687
Answer» B. 1866

Discussion

131.	Which one is not feature of the contract of fire Insurance?
A.	It is personal in nature
B.	Cause of fire is immaterial
C.	Covers losses as a whole
D.	None of the Above
Answer» E.

Discussion

132.	The principle functions of an insurance contract are
A.	To define the risk that is to be transferred
B.	To state the conditions under which the contract applies
C.	To explain the procedure for settling losses
D.	All of the Above
Answer» E.

Discussion

133.	Internet Banking is also known as
A.	e-banking
B.	virtual banking
C.	both a and b
D.	None of them.
Answer» D. None of them.

Discussion

134.	Co-operative banks which work at metropolitan level are called as?
A.	District central Co-operative bank
B.	State co-operative bank
C.	Primary Urban Co-operative Bank
D.	Primary Agricultural Credit Societies
Answer» E.

Discussion

135.	The minimum sum insured under Fire insurance is
A.	Rs. 1 crore
B.	Rs. 2 crore
C.	Rs. 3 crore
D.	Rs. 4 crore
Answer» B. Rs. 2 crore

Discussion

136.	___________is the oldest form of insurance
A.	Motor insurance
B.	Marine insurance
C.	Fire
D.	Life
Answer» C. Fire

Discussion

137.	A kind of deposit where depositor is required to deposit a fixed amount at regular intervalfor a specific period is
A.	term deposit
B.	saving deposit
C.	fixed deposit
D.	recurring deposit
Answer» E.

Discussion

138.	A kind of deposit where depositor is required to deposit a fixed amount at regular interval for a specific period is
A.	term deposit
B.	recurring deposit
C.	savings deposit
D.	fixed deposit
Answer» E.

Discussion

139.	Commercial Banks make money available to public by
A.	A.T.M
B.	Honouring cheques
C.	Issuing money on demand from Savings A/c
D.	giving out loan
Answer» E.

Discussion

140.	___________is a kind of deposit where depositor is required to deposit a fixed amount of money every month for a specific period of time
A.	Term deposit
B.	Recurring deposit
C.	Savings deposit
D.	Fixed deposit
Answer» C. Savings deposit

Discussion

141.	The first Indian bank is known as
A.	Bank of Hindustan
B.	Bank of Madras
C.	Bank of Calcutta
D.	Bank of Bombay
Answer» B. Bank of Madras

Discussion

142.	Right of lien is the right of a creditor
A.	To sell the goods and securities of the customer in his possession
B.	To retain in his possession goods and securities and not the right to sell
C.	To appropriate a customer s debt
D.	none of the above
Answer» C. To appropriate a customer s debt

Discussion

143.	When a banks make an advance to lump sum, the whole of which is withdrawn in cashimmediately by the borrowers who undertakes to repaid it in installments, it is called
A.	Cash credit
B.	loan
C.	Home loan
D.	Personal loan
Answer» C. Home loan

Discussion

144.	___________is a central bank of a country. It acts as a leader of the money market.
A.	Commercial bank
B.	RBI
C.	Development bank
D.	SBI
Answer» C. Development bank

Discussion

145.	A cheque is an order to a bank to pay a stated sum from the
A.	Fixed Deposit A/c
B.	Drawer s A/c
C.	Loan A/c
D.	Recurring Deposit A/c
Answer» C. Loan A/c

Discussion

146.	_________ is a contract between two insures i.e. original insurer and another insurer.
A.	Insurance
B.	Reinsurance
C.	Policy
D.	Premium
Answer» C. Policy

Discussion

147.	Which of the following are the special relationship of banker and customer:
A.	Banker s obligation to honour cheques
B.	Banker lien
C.	Bankers duty to maintain secrecy of customer s accounts
D.	All of these
Answer» E.

Discussion

148.	The primary relationship between a banker and customer starts from the time
A.	when customer visits that bank
B.	when customer opens account
C.	when customer visits that bank to made queries
D.	All of the above
Answer» C. when customer visits that bank to made queries

Discussion

149.	Which one of the following is the most important relationship between banker & customer?
A.	Debtor & Creditor
B.	Bailee&Bailor
C.	Agency & Principal
D.	Trustee & Beneficiary
Answer» B. Bailee&Bailor

Discussion

150.	______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid
A.	Lien
B.	Retainment
C.	Retrenchment
D.	Libel
Answer» B. Retainment

Discussion

Explore topic-wise MCQs in Bachelor of Business Administration (BBA).

For regulation and development of the insurance sector of the country the Government has formed:

Insurance is meant to

In case of life insurance, insurable interest should exist

Which one of this is not a function of commercial bank?

RRB was set up in the year

Insurable interest is

The first public bank was

Which one of this is a private sector bank

___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society.

Extending credit facilities to farmer and small-scale industrial units is the main purpose of

The principle of utmost good faith is meant to protect the interest of

The principle of utmost good faith is important to ensure

Which one of this is not a function of Mobile Banking

Which is the largest private sector bank in India

Agency services rendered by a bank to its customers as their agent include:

Regional Rural Banks (RRB s) were established in

The Regional Rural Banks were set up in the year

The principle of _______ensures that an insured does not profit by insuring with multipleinsurers.

In the case of life insurance, the principle of insurable interest operates

Each Regional Rural Bank is sponsored by:

Which is the largest public sector bank in India

In insurance the risk is

Industrial banks are specialised financial institutions established by government to:

IRDA was constituted by which of the following committee s recommendations

For the purpose of insurance, motor vehicle are classified into ___Categories

There is no interest on deposit in this type of account

Insurance principle does not include

The largest and oldest bank still in existence is the

Which of the following is not the function of commercial banks:

Fire insurance came into existence after the Great Fire of London in

Which one is not feature of the contract of fire Insurance?

The principle functions of an insurance contract are

Internet Banking is also known as

Co-operative banks which work at metropolitan level are called as?

The minimum sum insured under Fire insurance is

___________is the oldest form of insurance

A kind of deposit where depositor is required to deposit a fixed amount at regular intervalfor a specific period is

A kind of deposit where depositor is required to deposit a fixed amount at regular interval for a specific period is

Commercial Banks make money available to public by

___________is a kind of deposit where depositor is required to deposit a fixed amount of money every month for a specific period of time

The first Indian bank is known as

Right of lien is the right of a creditor

When a banks make an advance to lump sum, the whole of which is withdrawn in cashimmediately by the borrowers who undertakes to repaid it in installments, it is called

___________is a central bank of a country. It acts as a leader of the money market.

A cheque is an order to a bank to pay a stated sum from the

_________ is a contract between two insures i.e. original insurer and another insurer.

Which of the following are the special relationship of banker and customer:

The primary relationship between a banker and customer starts from the time

Which one of the following is the most important relationship between banker & customer?

______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid