Q1. —- defined a banker as b “One who in the ordinary course of business honours cheques drawn upon by persons from and for whom he receives money on current accountb”.
Answer: H. L. Henry
Q2. —- banks in India have come a long way since the enactment of the Agricultural Credit Cooperative Societies Act in 1904.
Answer: Cooperative
Q3. In order to enlarge —- available for a variety of purposes especially in the context of programme of financial inclusion, general credit card etc.
Answer: Resources
Q4. Cooperative banking structure in India encompasses —- cooperative banks and rural cooperative credit institutions.
Answer: Urban
Q5. On the recommendations of FKF —- Committee, the Lead Bank Scheme was introduced in December 1969.
Answer: Nariman
Q6. It is Indiab s premier Development Financial Institution (DFI) and the 2nd largest development bank of the world.
(a) True
(b) False
Answer: (b) False
Q7. The concept of insuring deposits kept with banks received attention for the first time in the year 1948 after the banking crises in Bengal.
(a) True
(b) False
Answer: (a) True
Q8. Industrial Investment Bank of India Ltd. (IIBI) set up under the Companies Act, 1956, in March 1997.
(a) True
(b) False
Answer: (a) True
Q9. HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of promoting home ownership by providing long-term finance to households for their housing needs.
(a) True
(b) False
Answer: (a) True
Q10. —- is usually defined as the central bankb s operational and management independence from the government.
Answer: Independence
Q11. The BFS oversees the functioning of —- (DBS), Department of NonBanking Supervision (DNBS) and Financial Institutions Division (FID) and gives directions on the regulatory and supervisory issues.
Answer: Department of banking supervision
Q12.The —- performs financial supervision under the guidance of the Board for Financial Supervision (BFS).
Answer: RBI
Q13. A central board of directors governs the Reserve Bankb s affairs. The —-, in keeping with the Reserve Bank of India Act, appoints this board.
Answer: GOI
Q14. The —- of our country is the Reserve Bank of India (RBI).
Answer: Central bank
Q15. The Central Bank differs from other financial institutions.
(a) True
(b) False
Answer: (a) True
Q16. The main function of the Central Bank is to regulate the monetary mechanism comprising of the currency, banking and credit systems.
(a) True
(b) False
Answer: (a) True
Q17. For promoting industrialization, the Reserve Bank has been providing finance through various institutions, to large, medium and small-scale industries.
(a) True
(b) False
Answer: (a) True
Q18. The main objective of the Reserve Bank of India is to demotion of monetization and monetary integration of the economy.
(a) True
(b) False
Answer: (b) False
Q19. The RBI has set many other institutions also in the category of industrial development banks.
(a) True
(b) False
Answer: (a) True
Q20. The Reserve Bank of India has the responsibility to maintain the official —- .
Answer: Rate of exchange
Q21. —- need to interpret the concept of risk in a very broad sense.
Answer: Central banks
Q22. The —- has been operating selective controls since 1956 in respect of certain commodities, which have been sensitive or in short supply
Answer: RBI (Reserve Bank of India)
Q23. The survey of central bank risk managers confirms that a high —- of central banks is currently restructuring their risk management operations.
Answer: Proportion
Q24. The Banking Regulation Act confers wide powers on the Reserve Bank of India to control the level and pattern of banksb —- in general or on a selective basis.
Answer: Advances
Q25. A Joint Savings bank account can be operated upon by a Mandate/Power of attorney holder provided:
(a) The Mandate/Power of attorney is given by all the joint account holders
(b) The Mandate/Power of attorney is given by any of the joint account holders
(c) Joint SB account cannot be operated upon by a mandate/power of attorney
(d) None of the above
(e) Any one of (a), (b), (c)
Answer: (a) The Mandate/Power of attorney is given by all the joint account holders
Q26. The mode of operation of Joint Savings Bank account can be altered by:
(a) All joint account holders
(b) Any of the joint account holders
(c) Mode of operation once given cannot be altered
(d) All of the above
(e) None of the above
Answer: (a) All joint account holders
Q27. In a Joint Savings Bank account when the operational instructions are not given, cheques in the account can be drawn by:
(a) Any of the joint account holders
(b) All the account holders jointly
(c) Cheques cannot be drawn without operational instructions
(d) Operations in the account cannot be permitted
(e) None of the above
Answer: (b) All the account holders jointly
Q28. —- has wider connotation and is not the same as that of retail lending.
Answer: retail banking
Q29. Banks cannot accept interest-free deposit, except for deposit at call; for instance money held in current account of the —- does not bear any interest.
Answer: depositor
Q30. Depositors having any complaint/grievance with regard to services rendered by the bank has a right to approach authority(ies) designated by the bank for handling customer complaint/grievances.
(a) True
(b) False
Answer: (a) true
Q31. If the depositor has registered nomination with the bank – the balance outstanding in the account of the deceased depositor will be transferred to the account of/paid to the nominee after the bank satisfies about the identity of the nominee, etc.
(a) True
(b) False
Answer: (a) true
Q32. Safe deposit lockers may not be hired by an individual (being not a minor) singly or jointly with another individual(s), HUFs, firms, limited companies, associates, societies, trusts etc.
(a) True
(b) False
Answer: (b) false
Q33. The bank may not consider request of the depositor/s for loan/overdraft facility against term deposits duly discharged by the depositor/s on execution of necessary security documents.
(a) True
(b) False
Answer: (b) false
Q34. The bank may not at its discretion open deposit accounts other than Current Accounts of illiterate person.
(a) True
(b) False
Answer: (b) false
Q35. In case of premature withdrawal of an FDR, interest is payable if the deposit has remained with the bank:
(a) For a period more than 15 days
(b) For a period more than 45 days
(c) No interest is payable on premature payment
(d) None of the above
Answer: (a) For a period more than 15 days
Q36. Mr. X has given a power of attorney to his son Y to operate the account, you learn Mr. X is now admitted to mental hospital due to his lunacy. In this caseb
(a) Mr. Y can operate the account
(b) Mr. Y cannot operate the account
(c) Mr. X can operate the account
(d) Mr. X or Y cannot operate the account
Answer: (d) Mr. X or Y cannot operate the account
Q37. Payment in a deceased deposit account can be made whenb
(a) All the legal heirs jointly submit the succession certificate
(b) Legal heirs submit death certificate and indemnity only
(c) Both (a) and (b) above
(d) None of the above
Answer: (c) Both (a) and (b) above
Q38. If the banker makes payment in violation of stop payment instruction of the account holder, the same may be regarded as a deficiency in the bankb s serviceb
(a) Yes
(b) No
Answer: (a) Yes
Q39. The —- is the bankb s primary representative to a customer or client.
Answer: loan officer
Q40. —- taken as collateral are marked to market on a daily basis and value of collateral is required to be maintained.
Answer: Securities
Q41. There is no doubt that social obligations increase cost of operations and hence unfavorably affect —- of the bank.
Answer: Probability
Q42. The Indian banking system is at present being administered by two authorities, the —- (MOF) and the Reserve Bank of India (RBI).
Answer: Ministry of Finance
Q43. Despite necessary audit of banks many banks continue to —- their balance sheets by falsely increasing their deposits in the last week of the financial year
Answer: Manipulate
Q44. A —- can serve society and help economy to develop only when it operates successfully.
Answer: Commercial bank
Q45. For banks engaged in operations outside India, deductions are not allowed on amounts transferred to special reserves up to 40% of the total income.
(a) True
(b) False
Answer: (b) False
Q46. Banks should not develop efficient methods of appraisal of the applicants.
(a) True
(b) False
Answer: (b) False
Q47. The RBI’s permission to commercial banks to undertake leasing factoring and hire purchase business to get additional business and earnings.
(a) True
(b) False
Answer: (a) True
Q48. The RBI should lower down the cash reserve ratio and statutory liquidity ratio so as to increase the lendable funds of the nationalised banks and improve their profitability.
(a) True
(b) False
Answer: (a) True
Q49. This is the revised RBI Guidelines for private banks as The bank should have a minimum paid-up capital of Rs. —- crore to be raised to Rs. —- crore within three years of the start of business.
Answer: 200/300
Q50. —- specialisation by banks would automatically lead to their functional specialisation to a large extent. In this process, the utilisation of skilled manpower will be optimized and the quality of customer service will improve.
Answer: Geographical
Q51. The Committee stipulates in —- through VI of the paper, principles for banking supervisory authorities to apply in assessing bank’s credit risk management systems
Answer: Section II
Q52. —- is the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms.
Answer: Credit risk
Q53. Banks should now have a keen awareness of the need to identify, measure, monitor and control credit risk as well as to determine that they hold adequate capital against these risks and that they are adequately —- for risks incurred.
Answer: compensated
Q54. —- include instruments through which payments can be made, rules, regulations and procedures that guide these payments, institutions which facilitate payment mechanisms and legal systems etc. that are established to facilitate transfer of funds between different participants.
Answer: Payment systems
Q55. The central bank of any country is usually the driving force in the —- of the national payment system.
Answer: Development
Q56. Payments can be made between two or more parties by means of —- instructions without the use of cheques.
Answer: Electronic
Q57. The card issuing —- should constitute an internal grievance redressal machinery and give wide publicity to it through electronic and print media.
Answer: Banks/NBFCs
Q58. The process of —- payment starts when a payer gives his personal cheque to the beneficiary.
Answer: Cheque
Q59. The ECS is further divided into two types – ECS (Credit) to make bulk payments to individuals/vendors and ECS (Debit) to receive bulk utility payments from individuals.
(a) True
(b) False
Answer: (a) True
Q60. The bank customers would not get their cheques realised as faster as T+0 local clearing and T+1 inter-city clearing is possible in Cheque Truncation System (CTS).
(a) True
(b) False
Answer: (b) False
Q61. The need for a Cheque Truncation mechanism arises. Cheque Truncation is a system of cheque clearing and settlement between banks based on electronic data/images or both, without physical exchange of instrument.
(a) True
(b) False
Answer: (a) True
Q62. The chief reasons for the use of cheque by common masses are that they do not require a Notes computer or debit card at the point of sale.
(a) True
(b) False
Answer: (a) True
Q63. Ordinarily, the transactions among banks (not pertaining to customer transactions) would be for smaller values.
(a) True
(b) False
Answer: (b) False
Q64. While launching of Real-Time Gross settlement (RTGS) system by —- has added anew dimension to EFT scenario.
Answer: RBI
Q65. The RBI, apart from the role of regulator and supervisor of payment systems, also playsthe role of a Settlement Bank apart from being a —-, an operator and a user.
Answer: Catalyst
Q66. The —- for regulation and supervision of Payment and Settlement Systems (BPSS) is asubcommittee of the Central Board of the RBI and is the highest policy making body onpayment system.
Answer: Board
Q67. During the mid —-, electronic payment systems like ECS and EFT were introduced.
Answer: 90s
Q68. It is here that the need for a —- Truncation mechanism arises.
Answer: Cheque
. Cheque —- is a system of cheque clearing and settlement between banks based onelectronic data/images or both, without physical exchange of instrument
Answer: Truncation
Q69. The —- bank receives a message from the Reserve Bank that money has been credited to the receiving bank.
Answer: Remitting
Q70. The — system is primarily for large value transactions.
Answer: RTGS
Q71. —- are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches.
Answer: EFT/NEFT
Q72. Once the —- are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or by a short message on the mobile.
Answer: Funds
Q73. The acronym “RTGS” stands for —- .
Answer: Real time gross settlement
Q74. The RTGS system has brought about some significant benefits to the Indian financial system.
(a) True
(b) False
Answer: (a) True
Q75. Messages sent through the mode of SFMS by the bankers may not relate to customer payment and cheques.
(a) True
(b) False
Answer: (b) False
Q76. The RBI’s Institute of Development and Research in Banking Technology, Hyderabad has set up a National Financial Switch that would enable sharing common technology infrastructure
(a) True
(b) False
Answer: (a) True
Q77. The RTGS system is not used for customer transactions.
(a) True
(b) False
Answer: (b) False
Q78. The National Inter Bank Payment Gateway Project will function as an integrated payment service system between the parties concerned.
(a) True
(b) False
Answer: (a) True
Q79. —- handles approximately 220.1 million messages per month, average daily traffic 9081423 messages on global basis.
Answer: Swift
Q80. These are other Euro clearing systems, with —- plus, being a German hybrid clearing system and operating as an European oriented real time gross settlement and payment system. RTGS plus, has over 60 participants.
Answer: RTGS
Q81. The —-, with a membership of over 70 banks, in all EU member countries, works as a netting system with focus on cross border Euro payments.
Answer: EBA-EURO1
Q82. Trans-European Automated Real-Time Gross Settlement Express Transfer system is an —- payment system comprising 15 national RTGS systems working in Europe.
Answer: EURO
Q83. SWIFT is a Cooperative Society registered in May 1973 in Brussels, —-.
Answer: Belgium
Q84. Any person or entity connected with a —- transaction which can pose significant reputational or other risks to the bank is called customer.
Answer: Financial
Q85. All customers not falling under the category of —- Risks are to be classified Notes under Low Risk category.
Answer: High/medium
Q86. Risk in various accounts will be based on: (I) —-, (II) Type of products and services availed by the customer, and (III) Country where the customer is domiciled.
Answer: Type of customer
Q87. —- will be classified into three risk categories namely High, Medium and Low, and Negligible based on the risk perception.
Answer: Customers
Q88. The technological advancements have helped money launderers to adopt innovative means and move funds faster across continents making —- action much more difficult.
Answer: Detection/preventive
Q89. Monitoring and reporting of all transactions and sharing of information are not required under the law in Anti money lending law.
(a) True
(b) False
Answer: (b) False
Q90. Banks should ensure that records pertaining to the identification of the customer and his address obtained while opening of the account and during the course of business relationship are properly preserved for at least 10 years after the business relationship is ended.
(a) True
(b) False
Answer: (a) True
Q91. Branches would be maintaining a close watch on cash transactions (whether deposits or withdrawals) of Rs. 25 lakh and above in all deposit and loan accounts and recording the same separately in the prescribed register.
(a) True
(b) False
Answer: (a) False
Q92. Monitoring of transactions will be conducted taking into consideration the risk profile of the account.
(a) True
(b) False
Answer: (a) True
Q93. Transactions that involve large amounts of cash inconsistent with the normal and expected activity of the customer will not be subjected to detailed scrutiny.
(a) True
(b) False
Answer: (b) False
Q94. The financial year has not been defined under —-, but for this, reference may be taken of the Income Tax Act.
Answer: FEMA
Q95. —- Banking has wider connotation; it also include designing, developing and marketing of customized products/services.
Answer: Retail
Q96. FEMA holds that a person for the purpose of the Act means an —- of persons or a body of individuals, whether incorporated or not.
Answer: Association
Q97. Section —- FEMA holds that notwithstanding anything contained in any other law for the time being in force, no court shall take notice of any contravention under Section 51 of the repealed Act after the expiry of a period of two years from the date of the commencement of this Act.
Answer: 49(3)
Q98. In retail lending an —- market segment is just wholesale banking.
Answer: Attractive
Q99. The person to whom the amount mentioned in the promissory note is payable is known as —- .
Answer: Payee
Q100. Transfer of a negotiable instrument to another person by signing on it, is known as —- .
Answer: Endorsement
Q101. In a promissory note, the person who makes the promise to pay is called —- .
Answer: Drawer/Maker
Q102. The person who endorses the promissory note in favour of another is known as —- .
Answer: Endorser
Q103. A promissory note must be signed as per —- Act.
Answer: Indian Stamp
Q104. A negotiable instrument does not require the signature of its maker.
(a) True
(b) False
Answer: (b) False
Q105. The hundi which is payable after a specified period of time is called ‘Darshani Hundi’.
(a) True
(b) False
Answer: (b) False
Q106. A negotiable insrument is not freely transferable
(a) True
(b) False
Answer: (b) False
Q107. Stamping of promissory note is not mandatory.
(a) True
(b) False
Answer: (b) False
Q108. The time of payment of a negotiable instrument need not be certain.
(a) True
(b) False
Answer: (b) False
Q109. Efficient —- of Loans and Advances portfolio has assumed greater significance as it is the largest asset of the bank having direct impact on its profitability.
Answer: Management
Q110. —- is a contract to execute the promise, or discharge the liability of a third person in case of his default.
Answer: Guarantee
Q111. —- accounts are kept in the ordinary current account head of the bank branches.
Answer: Overdraft
Q112. The exact period for which a particular —- is sanctioned depends on the circumstances of the case.
Answer: Loan
Q113. Projects financed must be closely monitored during —- stage to avoid time and cost overruns.
Answer: Implementation
Q114. —- lending by commercial banks is monitored by Reserve Bank of India through periodical Returns received from them.
Answer: Priority sector
Q115. The status of ‘—- may be given to all small scale units whose investment in plant and machinery is up to Rs. 25 lakhs, irrespective of the location of the unit.
Answer: Tiny enterprise
Q116. Small scale industrial units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs. 1 crore.
Answer: Small scale units
Q117. No service charges/inspection charges to be levied on PS advances up to Rs. 25000 and for loans above Rs. —- banks are free to levy service charges.
Answer: 25,000
Q118. —- activities such as leasing and hire purchase financing undertaken departmentally by banks will be classified as priority sector advances, provided the ultimate beneficiary satisfies the criteria laid down by RBI for treating such advances to PS.
Answer: Para-banking
Q119.Funds provided by commercial banks to SIDBI by way of rediscounting of bills which are originally discounted by a commercial bank and rediscounted by SIDBI will not be eligible for inclusion under the priority sector as indirect finance to SSI.
(a) True
(b) False
Answer: (b) False
Q120. Banks have been advised not to fix sub-limits within the overall working capital limits to the large borrowers specifically for meeting the payment obligation in respect of purchases from SSI.
(a) True
(b) False
Answer: (b) False
Q121. A register should be maintained at branch wherein the date of receipt, sanction/rejection/ disbursement with reasons therefore etc., should be recorded.
(a) True
(b) False
Answer: (a) True
Q122. A composite loan limit of Rs.1 crore can be sanctioned by banks to enable the SSI entrepreneurs to avail of their working capital and term loan requirement through Single Window.
(a) True
(b) False
Answer: (a) True
Q123. Rejection of applications for fresh limits/enhancement of existing limits should be done without the approval of the next higher authority.
(a) True
(b) False
Answer: (b) False
Q124. Concept of —- is based on thrift, which means cutting their expenditure and sparing for the purpose, Whereas saving means to save something from the existing income.
Answer: SHG
Q125. In order to deal with the problems of coordination for rehabilitation of sick —-, State Level Inter-Institutional Committees (SLIICs) have been set up in all the States.
Answer: Small Scale Units
Q126. —- and —- have contributed Rs. 40 crore each to this fund. The balance of Rs. 20 crore was contributed by 11 public sector banks.
Answer: RBI, NABARD
Q127. —- is defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve living standards.
Answer: Micro credit
Q128. —- programme should be fixed taking into account the sustenance requirements, surplus generating capacity, the break-even point, the life of the asset, etc., and not in an “ad hoc” manner.
Answer: Repayment
Q129. —- means an asset or an account of borrower, which has been classified by a bank orfinancial institution as substandard, doubtful or loss asset, in accordance to the directionsor guidelines on asset classification issued by the RBI.
Answer: Non Performing Assets
Q130. The analysis and —- capability and level of transparency and control provided by a BIsolution could be one of the qualitative factors in support of a higher rating.
Answer: Reporting
Q131. —- is the technology that unites uncommon corporate data into one resource, groupsit as a single source of company truth, and leverages it to achieve the strategic goals of theorganization.
Answer: BI
Q132. The solution to most of the —- faced by banks lies in implementing business intelligence(BI) solution.
Answer: Banks
Q133. —- 2002 (Given in Annexure): This Act increased the scope for the recovery of NPAs.
Answer: SARFAESI Act
Q134. Investment of banks in securities issued by the SPVs would not be able to attract all prudential norms applicable to non-SLR investments prescribed by the RBI.
(a) True
(b) False
Answer: (b) False
Q135. Banks cannot sell assets to an SPV only on cash basis. Any loss on sale should be reflected in the profit and loss account for the period during which the sales are affected out any profit/premium should be amortized over the life of the concerned securities.
(a) True
(b) False
Answer: (b) False
Q136. The securitized asset is transferred from the balance sheet of the originator to the SPV as true sale so that the originator would not be required to maintain capital against the value of the transferred asset.
(a) True
(b) False
Answer: (a) True
Q137. To carry out the provisions of the SARFAESI Act, the RBI has issued guidelines/directions, the main elements of which are: registration, asset reconstruction, functions of SCs/RCs, Securitization and prudential norms.
(a) True
(b) False
Answer: (a) True
Q138. A bank which has to recover any debt should approach the appropriate DRT which would issue a summon to the concerned borrower to explain within 30 days as to why the relief should not be granted to the bank.
(a) True
(b) False
Answer: (a) True
Q139. Some of the banks make a ‘—- provision’ over and above the specific provisions made in respect of accounts identified as NPAs.
Answer: Floating
Q140. A —- facility is provided to help smoothen the timing differences faced by the SPV between the receipt of cash flows from the underlying assets and the payments to be made to the investors.
Answer: Liquidity
Q141. An originator/third party service provider may act as an underwriter for the issue of securities by the —- and treat the facility as an underwriting facility for capital adequacy purposes.
Answer: SPV
Q142. —- (of standard assets) is a process by which performing assets are sold to a bankruptcy remote (i.e., the unlikelihood of the entity being subjected to voluntary/ involuntary proceedings) special purpose vehicle (SPV) against immediate cash payment.
Answer: Securitization
Q143. Where dues of the secured creditor are not fully satisfied with the sale proceeds of the secured assets, he may approach the —- for recovery of the balance from the borrower.
Answer: DRTs
Q144. A —- card is a plastic card which provides an alternative payment method to cash when making purchases.
Answer: Debit
Q145. EFT may be initiated by a cardholder when a —-card such as a credit card or debit card is used.
Answer: Payment
Q146. ECS (Debit) is used for raising —- to a number of accounts of consumers/ account holders for crediting a particular institution.
Answer: Debits
Q147. With cyber-cafes and —- springing up in different cities access to the Net has ‘become easy.
Answer: Kiosks
Q148. Message Authentication Code (MAC) or —- may also be used to ensure messages that have not been tampered with while in transit between the ATM and the financial network.
Answer: Partial MAC
Q149. For telebanking facility, customers need not have to enter into an agreement with thebank by signing a declaration.
(a) True
(b) False
Answer: (b) False
Q150. Tele-banking services do not help customers to avail banking services right from theirhome
(a) True
(b) False
Answer: (b) False
Q151. Factor provides all the services except for the prepayment of debts i.e. the client is paidmoney upon maturity and realization of debt.
(a) True
(b) False
Answer: (a) True
Q152. Microfinance refers to the provision of financial services to low-income clients, includingconsumers and the self-employed.
(a) True
(b) False
Answer: (a) True
Q153. —- helps the banks to build synergies between the insurance business and bank branch network.
Answer: Bancassurance
Q154. —- acquires the asset through borrowed funds and leases out.
Answer: Lesser
Q155. A lending institution called “—-” identifies the loans in its portfolio that are to be securitised.
Answer: Originator
Q156. A structured process where under loans and other receivables are packaged, underwritten and sold in the form of —- securities by commercial banks/financial institutions.
Answer: Asset blocked
Q157. —- pays hiring charges at stipulated intervals and quantum by the hirer.
Answer: Hiree
Q158. Insurance companies are called —- .
Answer: Insurers
Q159. A —- of insurance other than life insurance contract is a contract of indemnity.
Answer: Contract
Q160. Insurance is defined as a —- device to spread the loss caused by a particular risk over a number of persons who are exposed to it
Answer: Cooperative
Q161. The first kind of —- insurance business was marine insurance.
Answer: Formal
Q162. Insurance primarily creates counter part of the risk, which is —- .
Answer: Security
Q163. One of the features of IRDA Act is to reduce the efficiency in the conduct of insurance business.
(a) True
(b) False
Answer: (b) False
Q164. The uncertainty is changed into certainty by insuring property and life because the insurer promises to pay a definite sum at damage or death.
(a) True
(b) False
Answer: (a) True
Q165. Insurance is not that device which shares the financial losses, which might occur to an individual or his family on the happening of a specified event.
(a) True
(b) False
Answer: (b) False
Q166. The payment is made on happening of a certain contingency insured. It is true for all nonlife insurances that payment will be made on happening of the specified contingencyonly.
(a) True
(b) False
Answer: (a) True
Q167. In life insurance, the purpose is not to make good the financial loss suffered. Moreover one cannot estimate the value of a human being
(a) True
(b) False
Answer: (a) True
Q168. —- rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.
Answer: Mortality
Q169. Mortality rate is typically expressed in units of deaths per —- individuals per year;
Answer: 1000
Q170. A mortality rate of — (out of 1000) in a population of 100,000 would mean 950 deaths per year in that entire population, or 0.95% out of the total.
Answer: 9.5
Q171. A person makes his own personal financial plan and decides where he would like to invest his —- .
Answer: Savings
Q172. The —- can have some social security schemes for the socially and economically backward sections of the society i.e., for people below the poverty line
Answer: Government
Q173. A person has unlimited —- interest on his own life.
Answer: Insurable
Q174. An —- of the property (and joint owner) has insurable interest in the property.
Answer: Owner
Q175. A bank has insurable interest in the goods on the —- of which it has advancedloans. The interest is limited to the amount of the loan. Usually, under such circumstances, the policies are issued in joint names of the insured and the bank.
Answer: Mortgage
Q176. The owner of a —- has insurable interest in the vehicle as well as in apotential third party liability. If a third party is injured in the accident, the damagespayable to the third party would be a financial loss to the insured. Hence, he can insure histhird party liability too.
Answer: Motor Vehicle
Q177. A ship owner has insurable interest in the ship owned by him. —- owners, both sellers and buyers, have insurable interest in the goods owned by them. A shipowner has insurable interest in the freight he is going to get by carrying the cargo.
Answer: Cargo
Q178. The wilful act of any striker or a lockout, or the action of any lawful authority in suppressingsuch act, resulting in visible physical damage by external means, is not covered in terrorismdamage policy.
(a) True
(b) False
Answer: (b) False
Q179. Destruction or damage to the property insured by its own fermentation, natural heatingor spontaneous combustion or its undergoing any heating or drying process can be treatedas damage due to fire.
(a) True
(b) False
Answer: (b) False
Q180. Fire insurance business in India is governed by the All India Fire Tariff.
(a) True
(b) False
Answer: (a) True
Q181. Reinsurance is a form of an insurance cover for the insurance where several Insurancecompanies come together to issue one single risk.
(a) True
(b) False
Answer: (a) True
Q182. If the insurance company finds the malafide intentions of the assured, it can take it as adefense to avoid the fire insurance claim settlements.
(a) True
(b) False
Answer: (a) True
Q183. —- Policies are useful to businesses, which face frequent fluctuations in stock quantity or value.
Answer: Declaration
Q184. The —- advisory committee has prescribed three types of fire coverages viz., Policy A, Policy B, and Policy C.
Answer: Tariff
Q185. Premiums rating depends on the type of —- -whether industrial or otherwise.
Answer: Occupancy
Q186. In Reinstatement Value Policies, the —- of claims is on basis of reinstatement value.
Answer: Settlement
Q187. —- or inundation should not only be understood in the common sense of the terms, i.e., flood in the river or lakes, but also accumulation of water due to choked drains would be deemed to be flood.
Answer: Flood
Q188. According to —- Insurance Act, the insurer is liable for any loss proximately causedby a peril insured against.
Answer: Marine
Q189. —- warranty means a warranty, which is expressly stated.
Answer: Express
Q190. It is not necessary that the —- must exist at the time of affecting the insurance.
Answer: Insurable Interest
Q191. The —- of contribution also applies to marine insurance.
Answer: Doctrine
Q192. The insurer is known as “—-” and person taking insurance cover is called insured.
Answer: Underwriter
Q193. Wagering Policy: This policy is issued with there being any insurable interest, or a policybearing evidence that the insured is willing to dispense with any proof of interest.
(a) True
(b) False
Answer: (b) False
Q194. In the case of an Unvalued Policy, the value of the subject matter insured is not specified atthe time of effecting insurance. It is taken for a specified amount and the insurable valueis ascertained in the case of loss.
(a) True
(b) False
Answer: (a) True
Q195. Valued Policy: This policy specifies the uncertain value of the subject matter insured, which is not necessarily the actual value.
(a) True
(b) False
Answer: (b) False
Q196. Port Risk Policy: This is to cover a ship or cargo during a period in port against the risks peculiar to a port as distinguished from voyage risks.
(a) True
(b) False
Answer: (a) True
Q197. The recent bomb blasts in Jaipur, Bangalore and Ahemdabad and 26/11/08 incident of —- have put the entire nation under threat.
Answer: Mumbai
Q198. People whose work is more —- in nature, such as lawyers, accountants, teachers or the self-employed are regarded as normal risk by the insurers.
Answer: Static
Q199. If a person becomes partially disabled to perform his tasks, it is called —- disability.
Answer: Partial
Q200. Accident insurance is a form of —- insurance against loss by accidental bodilyinjury.
Answer: Health
Q201. According to experts, for people below —- years of age, the risk of accident is much higher than of health problems.
Answer: 45
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