Business services Quiz=1

____________account is meant for people who wish to save a part of their income to safeguard the future and can interest on it.

• Current account

• Savings account

• Recurring account

• Multiple option account

Answer explanation

Savings account is for saving income, earning interest, and securing the future.

When a property is insured by more than one insurance (i.e. in case of multiple insurance), the insurers are to share losses in what proportion?

• Ratio of premiums received

• Ratio of duration of insurance

• Ratio of amount insured

• Equal ratio

Answer explanation

When a property is insured by multiple insurance, the insurers share losses in the ratio of the amount insured. This ensures fair distribution of liability among the insurers.

In case of fire insurance policy, the insurer is liable to compensate for the loss only when the proximate cause of loss is fire.

• True

• False

• Can’t say

• Partially true

Answer explanation

The insurer compensates for loss only when the proximate cause is fire. Therefore, the correct answer is True.

Mr. Narayan, a businessman, has a current account in SBI, his current account shows balance of just ` 40,000, while he urgently needs ` 2,50,000 to pay off one of his creditors.He approaches SBI to allow him to withdraw ` 2,50,000, using the facility extended by the bank to him due to his creditworthiness. The bank agrees to it.Identify the facility which has been provided by SBI to Narayan.

• Borrowing

• Bank overdraft

• Banker’s cheque

• None of these

Answer explanation

SBI provided Narayan with a bank overdraft facility to withdraw ` 2,50,000 from his current account.

If the cargo does not reach its destination due to damage or destruction in the transit, the shipping company is not paid freight charges. To overcome losses suffered by such circumstances,shipping companies opt for

• ship insurance

• hull insurance

• cargo insurance

• freight insurance

Answer explanation

Freight insurance is chosen by shipping companies to cover losses in case the cargo is damaged or destroyed during transit, ensuring they are paid for their services.

In recurring deposit account, the depositor enjoys the liquidity of saving account and interest rate of fixed deposit account.

• True

• False

• Can’t say

• Partially true

Answer explanation

Recurring deposit accounts do not offer the interest rate of fixed deposit accounts. Therefore, the statement is false.

Raj gets the information about the rate of interest on fixed deposit by a telephonic conversation with an officer of a bank. Name this type of banking.

• Internet banking

• e-banking

• Tele-banking

• None of these

Answer explanation

Tele-banking is the correct choice as it refers to obtaining banking information through telephonic conversation with a bank officer.

Which of the following is not applicable in life insurance contract?

• Conditional contract

• Unilateral contract

• Indemnity contract

• None of the above

Answer explanation

Indemnity contract is not applicable in life insurance contract because it is a type of contract that provides compensation for losses, which is not relevant in life insurance.

The minimum period of deposit in case of recurring deposit account is _________and maximum is __________ .

• 12 months, 2 years

• 6 months, 10 years

• 4 months, 1 year

• 8 months, 3 years

Answer explanation

The minimum period of deposit for a recurring deposit account is 6 months, while the maximum period is 10 years. These are the correct choices.

A electronic fund transfer system under which transfer of funds take place from one branch of bank to another branch on real time and on grow basis is know as

• NEFT

• EFT

• RTGS

• ATM

Answer explanation

RTGS is an electronic fund transfer system that allows real-time and gross basis transfer of funds between bank branches.