1. General insurance policies are generally taken for
Correct : A. One year
2. When a policy matures on the death of the insured , it is expressed as:
Correct : C. whole life policy
3. In the revenue account bonus in reduction of premium is shown as
Correct : C. Expense
4. The fixed assets of an insurance company are shown in
Correct : D. None of these
5. Insurance Regulations and Development Authorities Act came to effect in :
Correct : B. 1999
6. Which of the following of an insurance company does not fall under ‘ Income from investments’.
Correct : C. Share transfer fees
7. Which of the following of an insurance company is included in other asset
Correct : B. Agent’s balance(dr)
8. Reserve for unexpired risk is shown under :
Correct : C. Provisions
9. In life insurance business , claims may arise on …………………….
Correct : C. death or maturity
10. Surrender value is an expression that is used in case of ………………. Insurance business .
Correct : A. Life
11. …………….. reserve is created to meet any loss due to natural calamity
Correct : C. Catastrophe reserve
12. Life insurance is contract of ………………………………….
Correct : A. Guarantee
13. General insurance is a contract of ………………………………
Correct : B. Indemnity
14. Double insurance is common in ……………………. Insurance.
Correct : A. Life
15. Re insurance is generally found in ………………. Insurance
Correct : D. None of these
16. Commission of an insurance company is shown in schedule
Correct : A. 2
17. To ascertain profit in life insurance business ………………. Prepared.
Correct : C. Valuation balance sheet
18. ……………….. of an insurance company are shown in schedule 9.
Correct : A. Loan
19. Insurance Act came into effect in ………………………………………..
Correct : A. 1938
20. The agreement of insurance is called as………
Correct : A. Policy
21. The consideration in insurance for covering the risk is
called………….
Correct : B. Premium
22. ……………. Is the party who undertakes the risk in insurance
Correct : D. All of these
23. The party whose risk is covered in insurance is known as
Correct : 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.
Correct : D. Life insurance
25. General insurance includes ………………………………………..
Correct : D. All of these
26. LIC was nationalized in …………………………………………
Correct : C. 1956
27. Insurance business in India is regulated by ……………………………..
Correct : B. IRDA
28. Under ………….. , the sum assured is given to the beneficiary only On death of policy holder
Correct : A. Whole life policy
29. ………………… is the amount payable to the insured on the happening of event.
Correct : C. Claim
30. An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ………………..
Correct : B. Annuity
31. The amount given to the policy holder due to his liability of paying Further premium is called ………………………………..
Correct : C. Surrender value
32. ……………. Is an arrangement between two insurance companies whereby one transfers a part of risk to other .
Correct : A. Re insurance
33. Revenue account is also called …………………………………
Correct : B. Policy holders a/c
34. Valuation balance sheet is prepared by ………………… business
Correct : C. Life insurance
35. The commission earned by insurance companies from others for giving them business under re insurance is called ……………………
Correct : A. Commission on re insurance ceded
36. The commission given by insurance companies to others for receiving Business under re insurance is called ………………….
Correct : B. Commission on re insurance accepted
37. The profit and loss amount of general insurance companies are prepared in …………………………………..
Correct : C. Form B – PL
38. The principles of subrogation is applicable to ………………………
Correct : D. All of these
39. Fire insurance, marine insurance etc come under ………………………
Correct : B. General insurance
40. In life insurance investments are come under the schedule ………….
Correct : B. Schedule 8
41. A …………. Company should transfer 25% of its profit to a statutory Reserve
Correct : D. Banking company
42. Rebate on bill discounted is a ……………………… of the Banking company.
Correct : A. Liability
43. Banks are required to transfer …………………. Of their profit to
a statutory reserve
Correct : A. 25%
44. Rebate on bills discounted is …………………………….
Correct : B. Income received in advance
45. Banking business in India is largely governed by the Banking Regulation Act……………………..
Correct : C. 1949
46. ………………… in India is largely governed by the Banking Regulation Act 1949 .
Correct : B. Banking business
47. Banking business in India is governed by the ……………….. Act.
Correct : D. Banking regulations
48. A banking company should transfer 25% of its profit to a …………….
Correct : C. Statutory Reserve
49. A ………………….. loan is payable on demand
Correct : B. Demand
50. Money at call and short notice is an ……………… of the banking company.
Correct : B. Asset
51. A demand loan is payable on ……………………………………..
Correct : A. Demand
52. Banks shown provision for income tax under the head ……………….
Correct : A. Other liabilitie
53. No profit and loss appropriation account is prepared in case of a…………… company.
Correct : C. Banking company
54. Banks are required to prepare final accounts for each ……….. year
Correct : A. Financial
55. A banking company required to prepare its profit & loss account according to ……………………… of the III schedule of the Banking Regulations Act.
Correct : B. Form B
56. Rebate on bills discounted is shown on the liability side of the ……….
Correct : C. Balance sheet
57. Revenue reserve means any reserve other than ……………. Reserve
Correct : B. Capital
58. A …………. Company required to prepare its balance sheet according
To form A in the III schedule of the Banking Regulation Act
Correct : C. Banking companies
59. A banking company required to prepare final accounts according to …………………schedule of the Banking Regulation Act
Correct : A. III
60. A banking company required to prepare its ……………. According to Form B in the III schedule of the Banking Regulations Act
Correct : C. Profit & loss account
61. A banking company prepares its ……………….. according to Form A Of the Banking Regulations Act
Correct : C. Balance sheet
62. Section 5(1) b of Banking Regulations Act , 1949 deals with
Correct : A. Banking
63. Banking Regulations Act 1949 Section 17 deals with
Correct : D. Statutory reserve
64. Depreciation on bank property , directors fees , and auditors fees are examples of schedule………………………………..
Correct : 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
Correct : A. standard asset
66. The claim lodged by the business to …………………….. on happening the event is known as insurance claim
Correct : C. Insurance company
67. The account prepared to find out the stock as on the date of fire is known as ……………………………… trading accounts.
Correct : 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 …………………………..
Correct : D. Average clause
69. The ………………………. Is less than the value of stock it is called under insurance?
Correct : D. Insurance policy
70. Insurance claim is a claim ……………………… by the insurance company
Correct : A. Lodged
71. Consequential loss policy is also known as ……………………….
Correct : B. loss of profit policy
72. It is ………………………….. to ascertain the value of stock as on the date of fire
Correct : C. very difficult
73. …………………….. is prepared to find out the stock as on the date of fire
Correct : D. memorandum trading account
74. ………………………. Is the difference between standard sales and actual sales of dislocated period
Correct : 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 ……………………………….
Correct : B. standard turnover
76. Investment made to earn regular income
Correct : C. Trade Investments
77. The price quoted includes interest
Correct : A. cum interest
78. Ex – dividend quotation ………………………………
Correct : B. excluding dividend
79. In respect of government security the price quoted is usually
Correct : A. Ex- interest
80. Short term investments made out of idle cash are called
Correct : A. marketable securitie
81. Trade investment are investment made for ……………. Period
Correct : B. long period
82. Ex – interest means ……………………………..
Correct : C. Excluding interest
83. Cum – interest means ………………………………………
Correct : C. cumulative interest
84. Investment made for long period are called ……………………
Correct : C. Trade investment
85. ………………….. investment made for earning regular income
Correct : D. Trade investment
86. Investment in government debentures , bonds etc. come under ………
Correct : C. Fixed income bearing securities
87. A ledger maintained where separate investment account prepared for a particular scrip is known as ………………………..
Correct : A. investment ledger
88. When bonus share are received the average cost of the existing
shares are …………………………….
Correct : A. Reduced
89. Bonus shares are issued by ……………….. free reserves
Correct : B. Capitalizing
90. Bonus shares are issued out of ……………………………………………….
Correct : B. free reserve
91. Right shares are issued to ………………….. share holders
Correct : B. existing
92. Investment account is ………………………. Account
Correct : C. Real
93. Sale of right is a ………………….. receipt in case of right issue
Correct : B. capital
94. Brokerage is ………… in the cost of investment in the books of
Purchase of investment
Correct : A. Added
95. Interest accrued up to the date of sale of investments added
to……………………………..Price.
Correct : A. Ex-interest
96. The cost of right share is ……………………………
Correct : A. added to the cost of investment
97. Long term investments are carried at ………………………..
Correct : B. cost price
98. Cost of investment includes ………….
Correct : D. All of the above
99. Short term investments are carried at …………………………………..
Correct : C. cost or market price which ever is less