McqMate
| 301. |
A co-operative bank is established for the interest of |
| A. | Members involved |
| B. | Public |
| C. | Lower status in the society |
| D. | Investors |
| Answer» A. Members involved | |
| 302. |
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» B. Drawer‟s A/c | |
| 303. |
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» C. issuing of one rupee notes and coins | |
| 304. |
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» C. 1st July – 30th June | |
| 305. |
What is the most widely used tool of monetary policy? |
| A. | issuing of notes |
| B. | open market operations |
| C. | Discount rate |
| D. | none of these |
| Answer» B. open market operations | |
| 306. |
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» D. Primary Agricultural Credit Societies | |
| 307. |
Which committee recommended the set-up of Regional Rural Banks? |
| A. | Nayak Committee |
| B. | AP Shah Committee |
| C. | Narsimhan Committee |
| D. | Rangarajan Committee |
| Answer» C. Narsimhan Committee | |
| 308. |
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» A. issuing currency | |
| 309. |
Payment of cheque can be stopped by |
| A. | beneficiary |
| B. | drawer of cheque |
| C. | Nominee |
| D. | all the above |
| Answer» B. drawer of cheque | |
| 310. |
________is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. |
| A. | Equated Monthly Instalment |
| B. | Primary Lending Rates |
| C. | Deposit Rates |
| D. | None of the above |
| Answer» A. Equated Monthly Instalment | |
| 311. |
Quantitative Credit control does not include: |
| A. | Bank rate |
| B. | RBI directives |
| C. | Cash reserve ratio |
| D. | Open market operations |
| Answer» B. RBI directives | |
| 312. |
The RBI was nationalized in |
| A. | 1948 |
| B. | 1949 |
| C. | 1950 |
| D. | 1951 |
| Answer» B. 1949 | |
| 313. |
Currency notes of Rupee 1 and its subsidiary coins are issued by the |
| A. | Reserve Bank of India |
| B. | State Bank of India |
| C. | Ministry of Finance, Government of India |
| D. | Securities and Exchange Board of India |
| Answer» C. Ministry of Finance, Government of India | |
| 314. |
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» C. Cooperative bank | |
| 315. |
In order to inject money into the economy, RBI |
| A. | Raises CRR |
| B. | Lowers CRR |
| C. | Raises SLR |
| D. | Sells in the open market |
| Answer» B. Lowers CRR | |
| 316. |
Cooperative banks has three-tier structure, at the top, there is |
| A. | Primary Credit Society |
| B. | Central Cooperative Bank |
| C. | State Cooperative Bank |
| D. | None of the above |
| Answer» C. State Cooperative Bank | |
| 317. |
A cheque dated subsequent to the date of its issue is |
| A. | Post dated cheque |
| B. | Blank cheque |
| C. | Crossed cheque |
| D. | Account payee cheque |
| Answer» A. Post dated cheque | |
| 318. |
Which banks which accept deposits from the public and lend them mainly to commerce for short periods? |
| A. | Commercial Bank |
| B. | Industrial Bank |
| C. | Agricultural Bank |
| D. | Central Bank |
| Answer» C. Agricultural Bank | |
| 319. |
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» A. insurer | |
| 320. |
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» B. insured | |
| 321. |
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» D. Increase of business expenses | |
| 322. |
Risk may be |
| A. | Objective |
| B. | Subjective |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 323. |
Objective Risk is defined as the relative variation of |
| A. | Actual loss from expected loss |
| B. | Expected loss from actual loss |
| C. | Expected profit from actual loss |
| D. | Actual loss from expected profit |
| Answer» A. Actual loss from expected loss | |
| 324. |
Uncertainty based on a person‟s mental condition or state of mind is |
| A. | Objective Risk |
| B. | Subjective Risk |
| C. | Both |
| D. | None of the Above |
| Answer» B. Subjective Risk | |
| 325. |
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» D. All of the above | |
| 326. |
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» D. All of the Above | |
| 327. |
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» C. Principle of knowledge | |
| 328. |
___________is the oldest form of insurance |
| A. | Motor insurance |
| B. | Marine insurance |
| C. | Fire |
| D. | Life |
| Answer» B. Marine insurance | |
| 329. |
Life insurance made its first appearance in England in the |
| A. | 14th century |
| B. | 15th century |
| C. | 16th century |
| D. | 17th century |
| Answer» C. 16th century | |
| 330. |
Risk may be: |
| A. | objective |
| B. | subjective |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 331. |
The General Insurance Business Nationalization Act was passed in |
| A. | 1952 |
| B. | 1972 |
| C. | 1962 |
| D. | 1982 |
| Answer» B. 1972 | |
| 332. |
Life Insurance Corporation of India headquarter is in |
| A. | Delhi |
| B. | Chennai |
| C. | Guwahati |
| D. | Mumbai |
| Answer» D. Mumbai | |
| 333. |
Insurance works on the principle of |
| A. | Sharing of losses |
| B. | Probabilities |
| C. | Large numbers |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 334. |
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» B. Contribution | |
| 335. |
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» C. Compensate for losses from specified events | |
| 336. |
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» C. Only to the extent of insured amount | |
| 337. |
Insurance is necessary because |
| A. | Assets depreciate over time and through usage |
| B. | Assets may be damaged by external causes |
| C. | Assets require regular maintenance |
| D. | None of the above |
| Answer» B. Assets may be damaged by external causes | |
| 338. |
Insurance works on the principle of |
| A. | Sharing |
| B. | Probabilities |
| C. | Large numbers |
| D. | All the above |
| Answer» D. All the above | |
| 339. |
Insurance works on the principle of |
| A. | Trust |
| B. | Sharing |
| C. | Randomness |
| D. | All the above |
| Answer» D. All the above | |
| 340. |
The amount of insurance depends on |
| A. | Peril |
| B. | The risk |
| C. | Neither the peril nor the risk |
| D. | Both the peril and the risk |
| Answer» D. Both the peril and the risk | |
| 341. |
Insurance benefits replace |
| A. | All physical losses in full |
| B. | All physical losses partially |
| C. | The monetary losses in full |
| D. | The monetary losses, but only to some extent. |
| Answer» D. The monetary losses, but only to some extent. | |
| 342. |
A human being |
| A. | Is an economic asset |
| B. | Is an income earning asset |
| C. | Is a perishable asset |
| D. | All the above |
| Answer» D. All the above | |
| 343. |
_________ is a contract between two insures i.e. original insurer and another insurer. |
| A. | Insurance |
| B. | Reinsurance |
| C. | Policy |
| D. | Premium |
| Answer» B. Reinsurance | |
| 344. |
The spreading of losses incurred by the few over the entire group is called |
| A. | pooling |
| B. | pulling |
| C. | contribution |
| D. | joining |
| Answer» A. pooling | |
| 345. |
Freight insurance is under |
| A. | life insurance |
| B. | marine insurance |
| C. | fire insurance |
| D. | other miscellaneous |
| Answer» B. marine insurance | |
| 346. |
Insurance principle does not include |
| A. | principle of indemnity |
| B. | principle of utmost good faith |
| C. | principle of knowledge |
| D. | principle of subrogation |
| Answer» C. principle of knowledge | |
| 347. |
The term „Risk‟ includes: |
| A. | Damage to machinery and property |
| B. | Impact on the health or life of a person |
| C. | Leakage of toxic products into the atmosphere |
| D. | all the above |
| Answer» D. all the above | |
| 348. |
________ means the transfer of all the rights and remedies available to the insured in respect of the subject matter to the insurer after indemnity has been effected. |
| A. | Subrogation |
| B. | Indemnity |
| C. | Contribution |
| D. | none |
| Answer» A. Subrogation | |
| 349. |
The IRDA stands for |
| A. | . Insurance Regulatory and Development Activity. |
| B. | . Insurance Reconstruction and Development Activity. |
| C. | . Insurance Regulatory and Development Authority. |
| D. | . Insurance Regulatory and Department Activity. |
| Answer» C. . Insurance Regulatory and Development Authority. | |
| 350. |
Virtual banking is also called |
| A. | Internet Banking |
| B. | Home banking |
| C. | Mobile banking |
| D. | None of these |
| Answer» A. Internet Banking | |
| 351. |
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» D. All of the above | |
| 352. |
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» D. All of the above | |
| 353. |
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» C. Insurance Regulatory and development Authority | |
| 354. |
When was Life Insurance sector nationalised? |
| A. | 1947 |
| B. | 1951 |
| C. | 1956 |
| D. | 1959 |
| Answer» C. 1956 | |
| 355. |
When was Oriental Life Insurance Company established? |
| A. | 1818 |
| B. | 1821 |
| C. | 1833 |
| D. | 1815 |
| Answer» A. 1818 | |
| 356. |
The term „ Risk‟ includes: |
| A. | Damage to machinery and property |
| B. | Impact on the health of life of a person |
| C. | Leakage of toxic products in the atmosphere |
| D. | All of the above |
| Answer» D. All of the above | |
| 357. |
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» B. Malhotra Committee | |
| 358. |
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» D. All of the Above | |
| 359. |
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» A. Cargo Insurance | |
| 360. |
An insurance which is concern with the carrier of goods |
| A. | Cargo Insurance |
| B. | Hull Insurance |
| C. | Road Insurance |
| D. | Marine Insurance |
| Answer» B. Hull Insurance | |
| 361. |
For the purpose of insurance, motor vehicle are classified into ___Categories |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Five |
| Answer» B. Three | |
| 362. |
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» A. Sec 165 | |
| 363. |
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» D. None of the Above | |
| 364. |
Life Insurance Corporation (LIC) of India is a |
| A. | Public sector company |
| B. | Private sector company |
| C. | Partnership Company |
| D. | Joint venture |
| Answer» A. Public sector company | |
| 365. |
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» A. Personal accident insurance | |
| 366. |
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» D. All of these | |
| 367. |
Freight insurance is under |
| A. | Life insurance |
| B. | Marine |
| C. | Fire |
| D. | Motor |
| Answer» B. Marine | |
| 368. |
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» A. Rs. 1 crore | |
| 369. |
General Insurance does not include: |
| A. | Travel Insurance |
| B. | Health Insurance |
| C. | Home insurance |
| D. | None of the above |
| Answer» D. None of the above | |
| 370. |
Life Insurance underwriting is mainly concerned with |
| A. | Age |
| B. | Health history |
| C. | Mortality |
| D. | Marital status |
| Answer» C. Mortality | |
| 371. |
____________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» B. Cargo insurance | |
| 372. |
Motor insurance provides insurance cover to |
| A. | Private vehicles |
| B. | Commercial Vehicles |
| C. | Motor cycles |
| D. | All of these |
| Answer» D. All of these | |
| 373. |
In insurance the risk is |
| A. | certain |
| B. | uncertain |
| C. | Both a and b |
| D. | None |
| Answer» B. uncertain | |
| 374. |
Which one of the following statements is correct? |
| A. | A life insurance policy is a contract, enforceable in a court of law |
| B. | A life insurance policy is not required to be stamped |
| C. | Both the statements are correct |
| D. | Both the statements are wrong |
| Answer» A. A life insurance policy is a contract, enforceable in a court of law | |
| 375. |
Which one of the following statements is correct? |
| A. | The principle of utmost good faith applies only to life insurance |
| B. | The principle of utmost good faith applies only to non-medical cases |
| C. | The principal of utmost good faith is operative only for two years |
| D. | All the above statements are incorrect |
| Answer» D. All the above statements are incorrect | |
| 376. |
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» B. The community of policyholders | |
| 377. |
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» D. All the three factors mentioned above | |
| 378. |
Which of the following risks are insurable? |
| A. | Speculative |
| B. | Economic |
| C. | Sure to happen |
| D. | All the above |
| Answer» B. Economic | |
| 379. |
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» D. Not defined in any written law | |
| 380. |
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» A. At the inception of policy | |
| 381. |
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» D. Differently than in other forms of insurances. | |
| 382. |
The term 'Assurance' refers to ___________ |
| A. | Life Insurance business |
| B. | Fire insurance business |
| C. | Motor Vehicle insurance |
| D. | Marine insurance |
| Answer» A. Life Insurance business | |
| 383. |
The central office of LIC of India is located at ________ |
| A. | Mumbai |
| B. | New Delhi |
| C. | Bangalore |
| D. | Chennai |
| Answer» A. Mumbai | |
| 384. |
Under ________ insurance, loss of profit policy is called as consequential loss policy |
| A. | Marine |
| B. | Property |
| C. | Fire |
| D. | Life |
| Answer» C. Fire | |
| 385. |
Health insurance can be availed by people aged between ______ and ______ |
| A. | 10 and 100 |
| B. | 7 and 75 |
| C. | 5 and 75 |
| D. | 10 and 70 |
| Answer» C. 5 and 75 | |
| 386. |
________ was the first Indian Insurance Company |
| A. | Bombay Mutual Assurance Society Ltd. |
| B. | Bombay Insurance Society Ltd. |
| C. | Insurance Regulatory Development Authority |
| D. | General Insurance Corporation |
| Answer» A. Bombay Mutual Assurance Society Ltd. | |
| 387. |
Which of the following insurance contract is not based on the principle of indemnity. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | All |
| Answer» C. Life insurance | |
| 388. |
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» D. All of these | |
| 389. |
When a banker collects cheques, dividend warrants, bills or other services on behalf of the customer, the banker the banker acts as an__________ |
| A. | Principal |
| B. | Agent |
| C. | Bailor |
| D. | Bailee |
| Answer» B. Agent | |
| 390. |
Motor insurance provides insurance cover to |
| A. | Private Vehicles |
| B. | Commercial Vehicles |
| C. | Motorcycles |
| D. | All of these |
| Answer» D. All of these | |
| 391. |
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» D. All of these | |
| 392. |
Hull insurance is a type of |
| A. | Motor insurance |
| B. | Fire insurance |
| C. | Marine insurance |
| D. | Miscellaneous insurance |
| Answer» C. Marine insurance | |
| 393. |
Freight insurance is under |
| A. | Life insurance |
| B. | Marine insurance |
| C. | Fire insurance |
| D. | Other miscellaneous insurance |
| Answer» B. Marine insurance | |
| 394. |
A marine insurance is a contract of |
| A. | Increment |
| B. | Indemnity |
| C. | Maturity |
| D. | None |
| Answer» B. Indemnity | |
| 395. |
Fire insurance came into existence after the Great Fire of London in |
| A. | 1666 |
| B. | 1866 |
| C. | 1686 |
| D. | 1687 |
| Answer» A. 1666 | |
| 396. |
Property insurance may not include |
| A. | Burglary |
| B. | Fidelity |
| C. | Insolvency |
| D. | Sickness |
| Answer» D. Sickness | |
| 397. |
Crop insurance covers the risks of |
| A. | Natural fire |
| B. | Storm |
| C. | Drought |
| D. | All of these |
| Answer» D. All of these | |
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