McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance) , Bachelor of Commerce in Banking (B.Com Banking) .
| 1. |
….. is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hope for. |
| A. | Loss |
| B. | Profit |
| C. | Risk |
| D. | Uncertainty |
| Answer» C. Risk | |
| 2. |
Relative variation of actual loss from expected loss is called……… |
| A. | Subjective risk |
| B. | Objective risk |
| C. | Actual loss |
| D. | Expected loss |
| Answer» B. Objective risk | |
| 3. |
Risk is measurable…….. |
| A. | Loss |
| B. | Profit |
| C. | Uncertainty |
| D. | None of the above |
| Answer» C. Uncertainty | |
| 4. |
…………. Refers to a situation where outcome is not certain |
| A. | Uncertainty |
| B. | Loss |
| C. | Insurance |
| D. | None of the above |
| Answer» A. Uncertainty | |
| 5. |
If any risk is concerned with financial loss, it is termed as……….. |
| A. | Business risk |
| B. | Business loss |
| C. | Financial risk |
| D. | Insurable claim |
| Answer» C. Financial risk | |
| 6. |
………… another name of fundamental risk |
| A. | Systematic risk |
| B. | Interest rate risk |
| C. | Group risk |
| D. | Loss |
| Answer» C. Group risk | |
| 7. |
Pure risk situation are those where there is a possibility of…………. |
| A. | Loss or no loss |
| B. | Loss |
| C. | Variation |
| D. | None of the above |
| Answer» A. Loss or no loss | |
| 8. |
Speculative risk is a situation in which…………………… is possible |
| A. | Loss |
| B. | Profit |
| C. | Either a profit or loss |
| D. | None of the above |
| Answer» C. Either a profit or loss | |
| 9. |
Changes is technology is a example for ………… |
| A. | Pure risk |
| B. | Speculative risk |
| C. | Static risk |
| D. | Dynamic risk |
| Answer» D. Dynamic risk | |
| 10. |
In static risk............. |
| A. | Losses cannot be predicted |
| B. | Losses can be predicted |
| C. | Losses are not easily predictable |
| D. | None of these |
| Answer» B. Losses can be predicted | |
| 11. |
Risk which can be measured using numerical scale are known as |
| A. | Quantifiable risk |
| B. | Static risk |
| C. | Dynamic risk |
| D. | Speculative risk |
| Answer» A. Quantifiable risk | |
| 12. |
………………is an example for personal risk |
| A. | Business loss |
| B. | Fire occurred in business premises |
| C. | Risk of premature death |
| D. | None of the above |
| Answer» C. Risk of premature death | |
| 13. |
Property damaged because of earthquake is…………risk |
| A. | Risk for general insurance |
| B. | Non insurable risk |
| C. | Property risk |
| D. | None of the above |
| Answer» C. Property risk | |
| 14. |
Spreading of risk otherwise termed as………. |
| A. | Shifting of risk |
| B. | Acceptance of risk |
| C. | Reduction of risk |
| D. | Spreading of risk |
| Answer» A. Shifting of risk | |
| 15. |
Insurance is a risk management technique involving… |
| A. | Risk retention |
| B. | Risk avoidance |
| C. | Loss Control |
| D. | Risk transfer |
| Answer» D. Risk transfer | |
| 16. |
An escape from disability or death in a plain crash by refusing to fly is called… |
| A. | Risk shifting |
| B. | Risk avoidance |
| C. | Risk hedging |
| D. | None of these |
| Answer» B. Risk avoidance | |
| 17. |
………… is the process of reducing frequencies and severely of losses. |
| A. | Loss prevention |
| B. | Loss Control |
| C. | Avoidance of risk |
| D. | None of the above |
| Answer» B. Loss Control | |
| 18. |
Willingness to retain whole or part of a given risk is called………….. |
| A. | Risk retention |
| B. | Risk carrying |
| C. | Risk bearing |
| D. | None of the above |
| Answer» A. Risk retention | |
| 19. |
Annual maintenance contract for computers is ………… |
| A. | Risk avoidance |
| B. | Loss reduction |
| C. | Insurance |
| D. | Transfer of risk by contract |
| Answer» D. Transfer of risk by contract | |
| 20. |
Which of the following is a method of risk identification. |
| A. | Insurance |
| B. | Standard deviation method |
| C. | Checklist method |
| D. | None of these |
| Answer» C. Checklist method | |
| 21. |
Risk evaluation breaks down into two parts. They are: |
| A. | Probability of loss occurring and its severity |
| B. | Risk calculation and risk analysis |
| C. | Loss calculation and avoidance |
| D. | None of the above |
| Answer» A. Probability of loss occurring and its severity | |
| 22. |
…………….. is planned retention by which the part or full of the exposure arising a risk factor is retained by the firm |
| A. | Reinsurance |
| B. | Self insurance |
| C. | Risk financing |
| D. | None of the above |
| Answer» B. Self insurance | |
| 23. |
IRDA Act passed in the year………….. |
| A. | 1972 |
| B. | 1999 |
| C. | 1989 |
| D. | 2000 |
| Answer» B. 1999 | |
| 24. |
A policy for protecting a group of employees in a firm is called……….. |
| A. | General Insurance |
| B. | State life insurance |
| C. | Group insurance |
| D. | None of the above |
| Answer» C. Group insurance | |
| 25. |
Committee constituted to reform insurance sector constituted in the 1993 was headed by |
| A. | R.N. Malhothra |
| B. | S. Narasimham |
| C. | Manmohan Singh |
| D. | Rangarajan |
| Answer» A. R.N. Malhothra | |
| 26. |
When the amount for which a subject matter is insured is more that its actual value. It is called….. |
| A. | Double insurance |
| B. | Over insurance |
| C. | Over premium |
| D. | None of these |
| Answer» B. Over insurance | |
| 27. |
Expansion of IRDA is……………. |
| A. | Insurance reforms and development agency |
| B. | Insurance restriction and development authority |
| C. | Insurance regulatory and development authority |
| D. | None of the above |
| Answer» C. Insurance regulatory and development authority | |
| 28. |
First private life insurance company was registered in India in………. |
| A. | 1999 |
| B. | 2000 |
| C. | 2002 |
| D. | 1978 |
| Answer» B. 2000 | |
| 29. |
When did Government of India nationalized life insurance business. |
| A. | 1956 |
| B. | 1978 |
| C. | 1991 |
| D. | 2002 |
| Answer» A. 1956 | |
| 30. |
…………….. is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy |
| A. | Specific policy |
| B. | Valued policy |
| C. | Average policy |
| D. | None of these |
| Answer» C. Average policy | |
| 31. |
………… Clause generally inserted in all general insurance contract to discourage under insurance |
| A. | Specific clause |
| B. | General clause |
| C. | Valuation clause |
| D. | Average clause |
| Answer» D. Average clause | |
| 32. |
Who pays premium under social security group insurance? |
| A. | Every member of the group |
| B. | Government |
| C. | LIC |
| D. | None of the above |
| Answer» C. LIC | |
| 33. |
…………..is concerned with the conversion of a firms asset and earning power against risk of accidental loss. |
| A. | Risk retention |
| B. | Risk management |
| C. | Risk control |
| D. | Risk identification |
| Answer» D. Risk identification | |
| 34. |
If the market interest rate is higher, the cost of insurance… |
| A. | Increases |
| B. | Moderate |
| C. | Decreases |
| D. | No change |
| Answer» C. Decreases | |
| 35. |
As age increases risk on the life……….. |
| A. | Increases |
| B. | Decreases |
| C. | No change |
| D. | None of the above |
| Answer» A. Increases | |
| 36. |
Premium of a policy is calculated on the basis of…… |
| A. | Income of the insured |
| B. | Agent’s report |
| C. | Risk associated with the policy |
| D. | None of the above |
| Answer» C. Risk associated with the policy | |
| 37. |
“Human life is an income generating asset”. The statement is…… |
| A. | True |
| B. | Partly true |
| C. | False |
| D. | Partly false |
| Answer» A. True | |
| 38. |
Maximum period of a policy in case of insurance other than life insurance is….. |
| A. | 12 months |
| B. | 24 months |
| C. | No limit |
| D. | None of these |
| Answer» A. 12 months | |
| 39. |
The business of insurance is related to protection of………… |
| A. | Status |
| B. | Economic value of asset |
| C. | Savings |
| D. | Profit |
| Answer» B. Economic value of asset | |
| 40. |
Reinsurance also termed as….. |
| A. | Double insurance |
| B. | Reinsurance of reinsurance |
| C. | Insurance of insurance |
| D. | None of these |
| Answer» C. Insurance of insurance | |
| 41. |
The danger of loss from the unforeseen circumstances in future refers to _____ |
| A. | Risk |
| B. | Perils |
| C. | Hazards |
| D. | Damage |
| Answer» A. Risk | |
| 42. |
_________ is concerned with the conversion of a firm’s asset and earning power against risks of accidental loss. |
| A. | Risk retention. |
| B. | Risk management. |
| C. | Risk control. |
| D. | Risk identification. |
| Answer» B. Risk management. | |
| 43. |
________ involved those losses that occur even if there were no changes in the economic environment. |
| A. | Dynamic risk. |
| B. | Static risk. |
| C. | Fundamental risk. |
| D. | Particular risk. |
| Answer» B. Static risk. | |
| 44. |
Risks are not suited to treatment by insurance refers to ____________ |
| A. | Static risk. |
| B. | Property risk. |
| C. | Dynamic risk. |
| D. | Liability risk. |
| Answer» C. Dynamic risk. | |
| 45. |
Fundamental risk is also termed as _________ |
| A. | Particular risk. |
| B. | Speculative risk. |
| C. | Group risk. |
| D. | Pure risk. |
| Answer» C. Group risk. | |
| 46. |
Unemployment, war, inflation, earthquakes etc., are the examples of ________ |
| A. | Pure risk. |
| B. | Particular risk. |
| C. | Personal risk. |
| D. | Fundamental risk. |
| Answer» D. Fundamental risk. | |
| 47. |
Any risk involved a situation where there is a possibility of gain refers to ________ |
| A. | Liability risk. |
| B. | Personal risk. |
| C. | Pure risk. |
| D. | Speculative risk. |
| Answer» D. Speculative risk. | |
| 48. |
Direct or Consequential losses refer to _________ |
| A. | Dynamic risk. |
| B. | Particular risk. |
| C. | Property risk. |
| D. | Pure risk. |
| Answer» C. Property risk. | |
| 49. |
Spreading of risk otherwise termed as _________ |
| A. | Shifting of risk. |
| B. | Acceptance of risk. |
| C. | Reduction of risk. |
| D. | Spreading of risk. |
| Answer» D. Spreading of risk. | |
| 50. |
The principle of prevention is better than cure refers to __________ |
| A. | Avoiding of risk. |
| B. | Reduction of risk. |
| C. | Transferring of risk. |
| D. | Shifting of risk. |
| Answer» A. Avoiding of risk. | |
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