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COMMERCIAL APPLICATIONS 10 (UNIT 1)

Total questions: 20

Worksheet time: 8mins

Name
Class
Date
1.

Market is only used to refer to a place buyers and sellers meet to buy and sell goods

a)

True

b)

False

2.

The service rendered by a doctor is an example of ____________ product.

a)

Tangible

b)

Free

c)

Intangible

d)

Valuable

3.

In which type of market a broad range of high mark up and fast moving branded goods are sold at discount prices.

a)

Primary market

b)

In- House market

c)

Catalogue Market

d)

Mail Order Market.

4.

It is believed that supply creates its own demand. Identify the stage of marketing.

a)

Product Oriented stage

b)

Marketing Oriented stage

c)

Sales Oriented stage

d)

Production Oriented stage

5.

Select all the applicable features of Service from the given options.

a)

Perishability

b)

Variabilty

c)

Associated Attributes

d)

Intangibility

6.

A product can be measured and controlled whereas Services cannot be measured and controlled. Identify the basis of distinction.

a)

Tangibility

b)

Quality

c)

Risk

d)

Inventory

7.

The person who gives a written cheque and orders the bank to provide the needed money to a specific person is known as a ___________.

a)

Drawer

b)

Drawee

c)

Payee

8.

What is likely to happen when the rate of interest of loan increases?

a)

Consumer spending increases

b)

consumers are discouraged to take less credit

c)

people hold more cash

d)

savers earns low interest

9.

A central bank usually performs which combination of the following functions...(select 2)

a)

It issue notes and coins for the nations currency and is where the king or queen holds their money

b)

It prints money for the banks to store until people withdraw it and issues the notes and coins

c)

It manages the nation's gold reserves and manages payments to and from the government

d)

It issue notes and coins for the nations currency and is the lender of last resort to the banking system

10.

Central bank is been given monopoly of note- issue in order to maintain (a)  

11.

Overdraft facility is provided to people having_________

a)

Fixed Deposits Account

b)

Current Account

c)

Recurring Account

d)

Saving Account

12.

Primary Functions of Commercial Banks are -(select all which is applicable)

a)

Accepting Deposits

b)

Advancing of Loans

c)

Credit Creation

d)

General utility Functions

13.

What is Credit Creation?

a)

To earn interest income

b)

To create derivative deposits.

c)

To create Legal reserve ratio

d)

To create cash reserve ratio.

14.

A deposit account is best described as...

a)

A current account, savings account or another type of bank account which allows money to be deposited and withdrawn by the account holder.

b)

Used by people for everyday transactions

c)

A safe place to store you savings

d)

An account where customers can go overdrawn on the amount they hold in it

15.

Interest is...

a)

A reward for saving and a reward for borrowing

b)

A cost of saving and a reward for borrowing

c)

A cost of borrowing and a cost of saving

d)

A reward for saving and a cost of borrowing

16.

What is the Cash Reserve Ratio (CRR)?

a)

the fraction of the deposits that commercial banks lend to the customers

b)

the fraction of the deposits that RBI must keep with commercial banks

c)

the fraction of the deposits that commercial banks must keep with RBI

17.

What is the ratio of deposits which commercial banks are required to keep with themselves called?

a)

CRR

b)

SLR

c)

BOTH

d)

NONE

18.

Buying and selling of government securities by the central bank from/to banks is called?

a)

open market operations

b)

margin

c)

banking

d)

CRR

19.

Commercial bank create credit money by way of --

a)

Time deposit

b)

Treasury Bill

c)

Bill of Exchange

d)

demand deposit

20.

What is marketing? (select two)

a)

The action of promoting and selling services, including market research.

b)

buying and selling of goods.

c)

The action of promoting products to be sold less than other products, including advertising.

d)

The business of promoting and selling products, including market advertising.