1. A co-operative bank is established for the interest of
Correct : A. Members involved
2. A cheque is an order to a bank to pay a stated sum from the
Correct : B. Drawer‟s A/c
3. Which of the following is not the function of RBI?
Correct : C. issuing of one rupee notes and coins
4. The accounting year of the Reserve bank of India come from?
Correct : C. 1st July – 30th June
5. What is the most widely used tool of monetary policy?
Correct : B. open market operations
6. Co-operative banks which work at metropolitan level are called as?
Correct : D. Primary Agricultural Credit Societies
7. Which committee recommended the set-up of Regional Rural Banks?
Correct : C. Narsimhan Committee
8. Which of the following is not the function of commercial banks:
Correct : A. issuing currency
9. Payment of cheque can be stopped by
Correct : B. drawer of cheque
10. ________is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.
Correct : A. Equated Monthly Instalment
11. Quantitative Credit control does not include:
Correct : B. RBI directives
12. The RBI was nationalized in
Correct : B. 1949
13. Currency notes of Rupee 1 and its subsidiary coins are issued by the
Correct : C. Ministry of Finance, Government of India
14. Extending credit facilities to farmer and small-scale industrial units is the main purpose of
Correct : C. Cooperative bank
15. In order to inject money into the economy, RBI
Correct : B. Lowers CRR
16. Cooperative banks has three-tier structure, at the top, there is
Correct : C. State Cooperative Bank
17. A cheque dated subsequent to the date of its issue is
Correct : A. Post dated cheque
18. Which banks which accept deposits from the public and lend them mainly to commerce for short periods?
Correct : C. Agricultural Bank
19. The person or company who bears the risk of providing money at the end of a period of time or losses due to accident are known as
Correct : A. insurer
20. The person or company which gets compensation at the end of the period of time for
loss due to accident is called
Correct : B. insured
21. Which of the following is not an importance or necessity of Insurance?
Correct : D. Increase of business expenses
22. Risk may be
Correct : C. Both
23. Objective Risk is defined as the relative variation of
Correct : A. Actual loss from expected loss
24. Uncertainty based on a person‟s mental condition or state of mind is
Correct : B. Subjective Risk
25. Which of the following are the types of Risks
Correct : D. All of the above
26. The principle functions of an insurance contract are
Correct : D. All of the Above
27. Insurance principle does not include
Correct : C. Principle of knowledge
28. ___________is the oldest form of insurance
Correct : B. Marine insurance
29. Life insurance made its first appearance in England in the
Correct : C. 16th century
30. Risk may be:
Correct : C. Both (a) and (b)
31. The General Insurance Business Nationalization Act was passed in
Correct : B. 1972
32. Life Insurance Corporation of India headquarter is in
Correct : D. Mumbai
33. Insurance works on the principle of
Correct : D. All of the Above
34. The principle of _______ensures that an insured does not profit by insuring with multipleinsurers.
Correct : B. Contribution
35. Insurance is meant to
Correct : C. Compensate for losses from specified events
36. Insurance compensate losses
Correct : C. Only to the extent of insured amount
37. Insurance is necessary because
Correct : B. Assets may be damaged by external causes
38. Insurance works on the principle of
Correct : D. All the above
39. Insurance works on the principle of
Correct : D. All the above
40. The amount of insurance depends on
Correct : D. Both the peril and the risk
41. Insurance benefits replace
Correct : D. The monetary losses, but only to some extent.
42. A human being
Correct : D. All the above
43. _________ is a contract between two insures i.e. original insurer and another insurer.
Correct : B. Reinsurance
44. The spreading of losses incurred by the few over the entire group is called
Correct : A. pooling
45. Freight insurance is under
Correct : B. marine insurance
46. Insurance principle does not include
Correct : C. principle of knowledge
47. The term „Risk‟ includes:
Correct : D. all the above
48. ________ means the transfer of all the rights and remedies available to the insured in respect of the subject matter to the insurer after indemnity has been effected.
Correct : A. Subrogation
49. The IRDA stands for
Correct : C. . Insurance Regulatory and Development Authority.
50. Virtual banking is also called
Correct : A. Internet Banking
51. Role and importance of insurance includes:
Correct : D. All of the above
52. The valid contract, according to Section 10 of Indian Contract Act 1872, must have the following essentialities
Correct : D. All of the above
53. For regulation and development of the insurance sector of the country the Government has formed:
Correct : C. Insurance Regulatory and development Authority
54. When was Life Insurance sector nationalised?
Correct : C. 1956
55. When was Oriental Life Insurance Company established?
Correct : A. 1818
56. The term „ Risk‟ includes:
Correct : D. All of the above
57. IRDA was constituted by which of the following committee‟s recommendations
Correct : B. Malhotra Committee
58. The following are the types of life insurance products:
Correct : D. All of the Above
59. Insurance which provides cover for losses or damages that could occur to goods in transit on sea, rail, road or air is known as
Correct : A. Cargo Insurance
60. An insurance which is concern with the carrier of goods
Correct : B. Hull Insurance
61. For the purpose of insurance, motor vehicle are classified into ___Categories
Correct : B. Three
62. Third party claims are covered under Section ____ of the Motor Vehicle Act, which empowers the State Government to set up a Tribunal to adjudicate on the third party claims
Correct : A. Sec 165
63. Which one is not feature of the contract of fire Insurance?
Correct : D. None of the Above
64. Life Insurance Corporation (LIC) of India is a
Correct : A. Public sector company
65. The policy which cover against bodily injury resulting in death or disablement arising from an accident that has been caused by external violent and visible means is:
Correct : A. Personal accident insurance
66. As per the Insurance Act, every insurance has to prepare at the end of financial year?
Correct : D. All of these
67. Freight insurance is under
Correct : B. Marine
68. The minimum sum insured under Fire insurance is
Correct : A. Rs. 1 crore
69. General Insurance does not include:
Correct : D. None of the above
70. Life Insurance underwriting is mainly concerned with
Correct : C. Mortality
71. ____________caters specifically to the transportation of goods or merchandise packed or in bulk and shipped either by sea, air or land.
Correct : B. Cargo insurance
72. Motor insurance provides insurance cover to
Correct : D. All of these
73. In insurance the risk is
Correct : B. uncertain
74. Which one of the following statements is correct?
Correct : A. A life insurance policy is a contract, enforceable in a court of law
75. Which one of the following statements is correct?
Correct : D. All the above statements are incorrect
76. The principle of utmost good faith is meant to protect the interest of
Correct : B. The community of policyholders
77. The principle of utmost good faith is important to ensure
Correct : D. All the three factors mentioned above
78. Which of the following risks are insurable?
Correct : B. Economic
79. Insurable interest is
Correct : D. Not defined in any written law
80. In case of life insurance, insurable interest should exist
Correct : A. At the inception of policy
81. In the case of life insurance, the principle of insurable interest operates
Correct : D. Differently than in other forms of insurances.
82. The term 'Assurance' refers to ___________
Correct : A. Life Insurance business
83. The central office of LIC of India is located at ________
Correct : A. Mumbai
84. Under ________ insurance, loss of profit policy is called as consequential loss policy
Correct : C. Fire
85. Health insurance can be availed by people aged between ______ and ______
Correct : C. 5 and 75
86. ________ was the first Indian Insurance Company
Correct : A. Bombay Mutual Assurance Society Ltd.
87. Which of the following insurance contract is not based on the principle of indemnity.
Correct : C. Life insurance
88. Marine insurance may cover loss or damage to the ________
Correct : D. All of these
89. When a banker collects cheques, dividend warrants, bills or other services on behalf
of the customer, the banker the banker acts as an__________
Correct : B. Agent
90. Motor insurance provides insurance cover to
Correct : D. All of these
91. Marine insurance may cover loss or damage to the
Correct : D. All of these
92. Hull insurance is a type of
Correct : C. Marine insurance
93. Freight insurance is under
Correct : B. Marine insurance
94. A marine insurance is a contract of
Correct : B. Indemnity
95. Fire insurance came into existence after the Great Fire of London in