McqMate
| 1. |
General insurance policies are generally taken for |
| A. | One year |
| B. | two year |
| C. | three year |
| D. | none of these |
| Answer» A. One year | |
| 2. |
When a policy matures on the death of the insured , it is expressed as: |
| A. | With profit policy |
| B. | without profit policy |
| C. | whole life policy |
| D. | None of these |
| Answer» C. whole life policy | |
| 3. |
In the revenue account bonus in reduction of premium is shown as |
| A. | Liability |
| B. | Income |
| C. | Expense |
| D. | None of these |
| Answer» C. Expense | |
| 4. |
The fixed assets of an insurance company are shown in |
| A. | Schedule 6 |
| B. | Schedule 7 |
| C. | Schedule 8 |
| D. | None of these |
| Answer» D. None of these | |
| 5. |
Insurance Regulations and Development Authorities Act came to effect in : |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | None of these |
| Answer» B. 1999 | |
| 6. |
Which of the following of an insurance company does not fall under ‘ Income from investments’. |
| A. | Interest and dividend |
| B. | Profit on sale of investments |
| C. | Share transfer fees |
| D. | None of these |
| Answer» C. Share transfer fees | |
| 7. |
Which of the following of an insurance company is included in other asset |
| A. | Loan to director |
| B. | Agent’s balance(dr) |
| C. | Advance tax paid |
| D. | None of these |
| Answer» B. Agent’s balance(dr) | |
| 8. |
Reserve for unexpired risk is shown under : |
| A. | Reserves and surplu |
| B. | Current liabilities |
| C. | Provisions |
| D. | None of these |
| Answer» C. Provisions | |
| 9. |
In life insurance business , claims may arise on ……………………. |
| A. | death |
| B. | maturity |
| C. | death or maturity |
| D. | none of these |
| Answer» C. death or maturity | |
| 10. |
Surrender value is an expression that is used in case of ………………. Insurance business . |
| A. | Life |
| B. | Marine |
| C. | Fire |
| D. | None of these |
| Answer» A. Life | |
| 11. |
…………….. reserve is created to meet any loss due to natural calamity |
| A. | General reserve |
| B. | Special reserve |
| C. | Catastrophe reserve |
| D. | None of these |
| Answer» C. Catastrophe reserve | |
| 12. |
Life insurance is contract of …………………………………. |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» A. Guarantee | |
| 13. |
General insurance is a contract of ……………………………… |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» B. Indemnity | |
| 14. |
Double insurance is common in ……………………. Insurance. |
| A. | Life |
| B. | Fire |
| C. | Marine |
| D. | None of these |
| Answer» A. Life | |
| 15. |
Re insurance is generally found in ………………. Insurance |
| A. | Fire |
| B. | Marine |
| C. | Life |
| D. | None of these |
| Answer» D. None of these | |
| 16. |
Commission of an insurance company is shown in schedule |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | None of these |
| Answer» A. 2 | |
| 17. |
To ascertain profit in life insurance business ………………. Prepared. |
| A. | Revenue account |
| B. | Profit and Loss account |
| C. | Valuation balance sheet |
| D. | None of these |
| Answer» C. Valuation balance sheet | |
| 18. |
……………….. of an insurance company are shown in schedule 9. |
| A. | Loan |
| B. | Fixed asset |
| C. | cash & bank balance |
| D. | None of these |
| Answer» A. Loan | |
| 19. |
Insurance Act came into effect in ……………………………………….. |
| A. | 1938 |
| B. | 1956 |
| C. | 1949 |
| D. | None of these |
| Answer» A. 1938 | |
| 20. |
The agreement of insurance is called as……… |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» A. Policy | |
| 21. |
The consideration in insurance for covering the risk is called…………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 22. |
……………. Is the party who undertakes the risk in insurance |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» D. All of these | |
| 23. |
The party whose risk is covered in insurance is known as |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» B. Insured | |
| 24. |
In …………. The insurer agrees to pay a certain sum of money to the Policyholder either on his death or a certain age, whichever is less. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | Life insurance |
| Answer» D. Life insurance | |
| 25. |
General insurance includes ……………………………………….. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | All of these |
| Answer» D. All of these | |
| 26. |
LIC was nationalized in ………………………………………… |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» C. 1956 | |
| 27. |
Insurance business in India is regulated by …………………………….. |
| A. | LIC |
| B. | IRDA |
| C. | RBI |
| D. | SEBI |
| Answer» B. IRDA | |
| 28. |
Under ………….. , the sum assured is given to the beneficiary only On death of policy holder |
| A. | Whole life policy |
| B. | Endowment policy |
| C. | Annuity |
| D. | None of these |
| Answer» A. Whole life policy | |
| 29. |
………………… is the amount payable to the insured on the happening of event. |
| A. | premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 30. |
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ……………….. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» B. Annuity | |
| 31. |
The amount given to the policy holder due to his liability of paying Further premium is called ……………………………….. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» C. Surrender value | |
| 32. |
……………. Is an arrangement between two insurance companies whereby one transfers a part of risk to other . |
| A. | Re insurance |
| B. | Sub insurance |
| C. | Shared policy |
| D. | None of these |
| Answer» A. Re insurance | |
| 33. |
Revenue account is also called ………………………………… |
| A. | Share holders a/c |
| B. | Policy holders a/c |
| C. | Creditors a/c |
| D. | None of these |
| Answer» B. Policy holders a/c | |
| 34. |
Valuation balance sheet is prepared by ………………… business |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | All of these |
| Answer» C. Life insurance | |
| 35. |
The commission earned by insurance companies from others for giving them business under re insurance is called …………………… |
| A. | Commission on re insurance ceded |
| B. | Commission on re insurance accepted |
| C. | Agents commission |
| D. | None of these |
| Answer» A. Commission on re insurance ceded | |
| 36. |
The commission given by insurance companies to others for receiving Business under re insurance is called …………………. |
| A. | Commission on re insurance ceded |
| B. | Commission on re insurance accepted |
| C. | Agents commission |
| D. | None of these |
| Answer» B. Commission on re insurance accepted | |
| 37. |
The profit and loss amount of general insurance companies are prepared in ………………………………….. |
| A. | Form A-PL |
| B. | Form B – RA |
| C. | Form B – PL |
| D. | Form B – BS |
| Answer» C. Form B – PL | |
| 38. |
The principles of subrogation is applicable to ……………………… |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | All of these |
| Answer» D. All of these | |
| 39. |
Fire insurance, marine insurance etc come under ……………………… |
| A. | Life insurance |
| B. | General insurance |
| C. | Burglary insurance |
| D. | Double insurance |
| Answer» B. General insurance | |
| 40. |
In life insurance investments are come under the schedule …………. |
| A. | Schedule 7 |
| B. | Schedule 8 |
| C. | Schedule XI |
| D. | Schedule IX |
| Answer» B. Schedule 8 | |
| 41. |
A …………. Company should transfer 25% of its profit to a statutory Reserve |
| A. | Joint stock company |
| B. | Insurance company |
| C. | pvt ltd company |
| D. | Banking company |
| Answer» D. Banking company | |
| 42. |
Rebate on bill discounted is a ……………………… of the Banking company. |
| A. | Liability |
| B. | Assets |
| C. | Expense |
| D. | Income |
| Answer» A. Liability | |
| 43. |
Banks are required to transfer …………………. Of their profit to a statutory reserve |
| A. | 25% |
| B. | 20% |
| C. | 15% |
| D. | 10% |
| Answer» A. 25% | |
| 44. |
Rebate on bills discounted is ……………………………. |
| A. | Income |
| B. | Income received in advance |
| C. | Asset |
| D. | income accrued |
| Answer» B. Income received in advance | |
| 45. |
Banking business in India is largely governed by the Banking Regulation Act…………………….. |
| A. | 1932 |
| B. | 1956 |
| C. | 1949 |
| D. | 1938 |
| Answer» C. 1949 | |
| 46. |
………………… in India is largely governed by the Banking Regulation Act 1949 . |
| A. | Insurance busines |
| B. | Banking business |
| C. | Joint stock company |
| D. | Co-operative society |
| Answer» B. Banking business | |
| 47. |
Banking business in India is governed by the ……………….. Act. |
| A. | Partnership |
| B. | Company |
| C. | Insurance |
| D. | Banking regulations |
| Answer» D. Banking regulations | |
| 48. |
A banking company should transfer 25% of its profit to a ……………. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Statutory Reserve |
| D. | Reserve fund |
| Answer» C. Statutory Reserve | |
| 49. |
A ………………….. loan is payable on demand |
| A. | Short term |
| B. | Demand |
| C. | Fixed |
| D. | Long term |
| Answer» B. Demand | |
| 50. |
Money at call and short notice is an ……………… of the banking company. |
| A. | Liability |
| B. | Asset |
| C. | Income |
| D. | Expense |
| Answer» B. Asset | |
| 51. |
A demand loan is payable on …………………………………….. |
| A. | Demand |
| B. | At any time |
| C. | after one yea |
| D. | after six months |
| Answer» A. Demand | |
| 52. |
Banks shown provision for income tax under the head ………………. |
| A. | Other liabilitie |
| B. | Contingent liabilities |
| C. | Other liabilities and provisions |
| D. | None of these |
| Answer» A. Other liabilitie | |
| 53. |
No profit and loss appropriation account is prepared in case of a…………… company. |
| A. | Co – operative society |
| B. | Partnership |
| C. | Banking company |
| D. | None of these |
| Answer» C. Banking company | |
| 54. |
Banks are required to prepare final accounts for each ……….. year |
| A. | Financial |
| B. | Calendar |
| C. | Previous |
| D. | None of these |
| Answer» A. Financial | |
| 55. |
A banking company required to prepare its profit & loss account according to ……………………… of the III schedule of the Banking Regulations Act. |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» B. Form B | |
| 56. |
Rebate on bills discounted is shown on the liability side of the ………. |
| A. | Profit & loss a/c |
| B. | Income statement |
| C. | Balance sheet |
| D. | None of these |
| Answer» C. Balance sheet | |
| 57. |
Revenue reserve means any reserve other than ……………. Reserve |
| A. | General |
| B. | Capital |
| C. | Other reserve |
| D. | None of these |
| Answer» B. Capital | |
| 58. |
A …………. Company required to prepare its balance sheet according To form A in the III schedule of the Banking Regulation Act |
| A. | Insurance company |
| B. | Joint stock company |
| C. | Banking companies |
| D. | None of the above |
| Answer» C. Banking companies | |
| 59. |
A banking company required to prepare final accounts according to …………………schedule of the Banking Regulation Act |
| A. | III |
| B. | IV |
| C. | V |
| D. | VI |
| Answer» A. III | |
| 60. |
A banking company required to prepare its ……………. According to Form B in the III schedule of the Banking Regulations Act |
| A. | Balance sheet |
| B. | Profit & loss appropriations account |
| C. | Profit & loss account |
| D. | Position statement |
| Answer» C. Profit & loss account | |
| 61. |
A banking company prepares its ……………….. according to Form A Of the Banking Regulations Act |
| A. | Fund flow statement |
| B. | Cash flow method |
| C. | Balance sheet |
| D. | Income statement |
| Answer» C. Balance sheet | |
| 62. |
Section 5(1) b of Banking Regulations Act , 1949 deals with |
| A. | Banking |
| B. | Insurance |
| C. | Bills |
| D. | Dividend |
| Answer» A. Banking | |
| 63. |
Banking Regulations Act 1949 Section 17 deals with |
| A. | General Reserve |
| B. | Reserve fund |
| C. | capital reserve |
| D. | Statutory reserve |
| Answer» D. Statutory reserve | |
| 64. |
Depreciation on bank property , directors fees , and auditors fees are examples of schedule……………………………….. |
| A. | 13 |
| B. | 14 |
| C. | 15 |
| D. | 16 |
| Answer» D. 16 | |
| 65. |
Assets which does not carry more than normal risk attach to business and no provision in required to be made against such assets are called |
| A. | standard asset |
| B. | substandard asset |
| C. | Fixed asset |
| D. | current asset |
| Answer» A. standard asset | |
| 66. |
The claim lodged by the business to …………………….. on happening the event is known as insurance claim |
| A. | Banking company |
| B. | Joint stock company |
| C. | Insurance company |
| D. | None of these |
| Answer» C. Insurance company | |
| 67. |
The account prepared to find out the stock as on the date of fire is known as ……………………………… trading accounts. |
| A. | statement |
| B. | memorandum |
| C. | consolidated |
| D. | joint |
| Answer» B. memorandum | |
| 68. |
The clause through which the insurance claim due to loss of stock is reduced to the proportion that the policy value is ………………………….. |
| A. | Total clause |
| B. | minimum clause |
| C. | maximum clause |
| D. | Average clause |
| Answer» D. Average clause | |
| 69. |
The ………………………. Is less than the value of stock it is called under insurance? |
| A. | Endowment policy |
| B. | Life policy |
| C. | Accident policy |
| D. | Insurance policy |
| Answer» D. Insurance policy | |
| 70. |
Insurance claim is a claim ……………………… by the insurance company |
| A. | Lodged |
| B. | Longed |
| C. | Lounged |
| D. | laughed |
| Answer» A. Lodged | |
| 71. |
Consequential loss policy is also known as ………………………. |
| A. | Loss of cost policy |
| B. | loss of profit policy |
| C. | loss of Operation cost policy |
| D. | loss of operating expenses policy |
| Answer» B. loss of profit policy | |
| 72. |
It is ………………………….. to ascertain the value of stock as on the date of fire |
| A. | very easy |
| B. | not very easy |
| C. | very difficult |
| D. | not very difficult |
| Answer» C. very difficult | |
| 73. |
…………………….. is prepared to find out the stock as on the date of fire |
| A. | Trading account |
| B. | Profit and loss account |
| C. | manufacturing account |
| D. | memorandum trading account |
| Answer» D. memorandum trading account | |
| 74. |
………………………. Is the difference between standard sales and actual sales of dislocated period |
| A. | short sale |
| B. | Total sales |
| C. | gross sales |
| D. | Net sales |
| Answer» A. short sale | |
| 75. |
The turnover during that period in the twelve month immediately before the date of damage which corresponds with the indemnity period is called ………………………………. |
| A. | Annual turnover |
| B. | standard turnover |
| C. | total turnover |
| D. | Net turnover |
| Answer» B. standard turnover | |
| 76. |
Investment made to earn regular income |
| A. | marketable securitie |
| B. | fixed investments |
| C. | Trade Investments |
| D. | short term investments |
| Answer» C. Trade Investments | |
| 77. |
The price quoted includes interest |
| A. | cum interest |
| B. | ex-interest |
| C. | excluding interest |
| D. | None of these |
| Answer» A. cum interest | |
| 78. |
Ex – dividend quotation ……………………………… |
| A. | including dividend |
| B. | excluding dividend |
| C. | excess of dividend |
| D. | cumulative of dividend |
| Answer» B. excluding dividend | |
| 79. |
In respect of government security the price quoted is usually |
| A. | Ex- interest |
| B. | cum interest |
| C. | including interest |
| D. | none of above |
| Answer» A. Ex- interest | |
| 80. |
Short term investments made out of idle cash are called |
| A. | marketable securitie |
| B. | fixed investments |
| C. | trade investments |
| D. | none of these |
| Answer» A. marketable securitie | |
| 81. |
Trade investment are investment made for ……………. Period |
| A. | short period |
| B. | long period |
| C. | Two years period |
| D. | None of these |
| Answer» B. long period | |
| 82. |
Ex – interest means …………………………….. |
| A. | Inclusive of interest |
| B. | Including interest |
| C. | Excluding interest |
| D. | None of these |
| Answer» C. Excluding interest | |
| 83. |
Cum – interest means ……………………………………… |
| A. | Excluding interest |
| B. | Exclusive of interest |
| C. | cumulative interest |
| D. | none of the above |
| Answer» C. cumulative interest | |
| 84. |
Investment made for long period are called …………………… |
| A. | marketable securitie |
| B. | Temporary investments |
| C. | Trade investment |
| D. | Short investment |
| Answer» C. Trade investment | |
| 85. |
………………….. investment made for earning regular income |
| A. | short term investment |
| B. | marketable securities |
| C. | Temporary investment |
| D. | Trade investment |
| Answer» D. Trade investment | |
| 86. |
Investment in government debentures , bonds etc. come under ……… |
| A. | variable income bearing securities |
| B. | Temporary income bearing securities |
| C. | Fixed income bearing securities |
| D. | none of the above |
| Answer» C. Fixed income bearing securities | |
| 87. |
A ledger maintained where separate investment account prepared for a particular scrip is known as ……………………….. |
| A. | investment ledger |
| B. | purchase ledger |
| C. | Sales ledger |
| D. | none of these |
| Answer» A. investment ledger | |
| 88. |
When bonus share are received the average cost of the existing shares are ……………………………. |
| A. | Reduced |
| B. | Increased |
| C. | equal |
| D. | none of these |
| Answer» A. Reduced | |
| 89. |
Bonus shares are issued by ……………….. free reserves |
| A. | Generalizing |
| B. | Capitalizing |
| C. | equalizing |
| D. | None of these |
| Answer» B. Capitalizing | |
| 90. |
Bonus shares are issued out of ………………………………………………. |
| A. | capital reserve |
| B. | free reserve |
| C. | share premium |
| D. | none of these |
| Answer» B. free reserve | |
| 91. |
Right shares are issued to ………………….. share holders |
| A. | previou |
| B. | existing |
| C. | future |
| D. | None of these |
| Answer» B. existing | |
| 92. |
Investment account is ………………………. Account |
| A. | Personal |
| B. | Nominal |
| C. | Real |
| D. | Revenue a/c |
| Answer» C. Real | |
| 93. |
Sale of right is a ………………….. receipt in case of right issue |
| A. | Revenue |
| B. | capital |
| C. | deferred revenue |
| D. | none of these |
| Answer» B. capital | |
| 94. |
Brokerage is ………… in the cost of investment in the books of Purchase of investment |
| A. | Added |
| B. | deducted |
| C. | increased |
| D. | subtracted |
| Answer» A. Added | |
| 95. |
Interest accrued up to the date of sale of investments added to……………………………..Price. |
| A. | Ex-interest |
| B. | Cum-interest |
| C. | inclusive interest |
| D. | None of these |
| Answer» A. Ex-interest | |
| 96. |
The cost of right share is …………………………… |
| A. | added to the cost of investment |
| B. | no treatment is required |
| C. | Subtracted from the cost of investments |
| D. | None of the above |
| Answer» A. added to the cost of investment | |
| 97. |
Long term investments are carried at ……………………….. |
| A. | fair value |
| B. | cost price |
| C. | cost or market price which ever is less |
| D. | market price |
| Answer» B. cost price | |
| 98. |
Cost of investment includes …………. |
| A. | purchase cost |
| B. | brokerage paid |
| C. | stamp duty paid |
| D. | All of the above |
| Answer» D. All of the above | |
| 99. |
Short term investments are carried at ………………………………….. |
| A. | Fair price |
| B. | cost price |
| C. | cost or market price which ever is less |
| D. | Market value |
| Answer» C. cost or market price which ever is less | |
| 100. |
………… account is real account |
| A. | Brokerage |
| B. | Stamp duty |
| C. | purchase |
| D. | Investments |
| Answer» D. Investments | |
Done Reading?