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Business Services

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Which of the following statements is/are correct: A. Services are heterogeneous. B. Goods can be consistent in fulfilling demands. C. The ownership of services cannot be transferred.

  1. Only A

  2. Only B

  3. Only C

  4. Only A and C

  5. All of these


Correct Option: E
Explanation:

This is correct. All the statements are correct.

Which of the following is not an intrinsic feature of services that distinguishes services from goods?

  1. Services are intangible.

  2. Services are consistent.

  3. Simultaneous production and consumption of services.

  4. Services are perishable.

  5. Customer participates in the service delivery process.


Correct Option: B
Explanation:

This is the correct answer because this option is incorrect. Services are inconsistent. They have to be performed exclusively each and every time.

Which of the following services is/are the type/s of business services?

  1. Banking

  2. Insurance

  3. Warehousing

  4. All of the these

  5. Options 1 and 2


Correct Option: D
Explanation:

This is the correct answer. All these services are business services.

Which of the following banks is not a private sector bank?

  1. HDFC

  2. ICICI

  3. Kotak Mahindra Bank

  4. Jammu and Kashmir Bank

  5. None of these


Correct Option: E
Explanation:

This is the correct option as all these are private sector banks. These are owned, managed and controlled by private promoters, and are free to operate as per market forces.

Which of the following banks is the government banker of India?

  1. Reserve Bank of India

  2. Central Bank of India

  3. State Bank of India

  4. State Bank of Patiala

  5. Indian Overseas Bank


Correct Option: A
Explanation:

This is the correct answer. The central bank of a country supervises controls and regulates the activities of all commercial banks of that country. It also acts as the government banker. It controls the credit and currency policies of the country. Reserve Bank of India is the Central Bank of India.

Which of the following types of banks is/are an important source of rural credit and agricultural financing in India?

  1. Public sector banks

  2. Private sector banks

  3. Cooperative banks

  4. Specialised banks

  5. Central bank


Correct Option: C
Explanation:

This is the correct answer. Cooperative banks are governed by the provisions of State Cooperative Societies Act and are meant essentially for providing cheap credit to their members. They are an important source of rural credit and agricultural financing in India.

Which of the following banks provides financial aid to industries, heavy turnkey projects and foreign trade?

  1. Central bank

  2. Cooperative banks

  3. Specialised banks

  4. Public sector banks

  5. Private sector banks


Correct Option: C
Explanation:

This is the correct answer. These are foreign exchange banks, development banks or export-import banks catering to unique and specific needs of these unique activities. These banks provide financial aid to industries, heavy turnkey projects and foreign trade.

Which of the following is not a function of commercial banks?

  1. Acceptance of deposits

  2. Lending of funds

  3. Remittance of funds

  4. Coordinating currency

  5. Underwriting services


Correct Option: D
Explanation:

Central banks perform this activity along with the decisions on credit policies, and controlling and coordinating currency. Thus, this is the correct answer.

IRDA started granting licenses from year 2000 onwards to private players, in which of the following sectors?

  1. Communications

  2. Energy

  3. Insurance

  4. All of the these

  5. None of the these


Correct Option: C
Explanation:

This is the correct answer. IRDA started granting licenses to private players in Insurance sector and it has seen considerable expansion since then.

Which of the following is not a function of insurance?

  1. Providing certainty

  2. Protection

  3. Risk sharing

  4. Subrogation

  5. Capital formation


Correct Option: D
Explanation:

This is the correct answer. Subrogation is the right of the insurer to stand in the stead of the insured, after the settlement of the claim, as far as the right of insured in respect of recovery from an alternative source is involved. 

Which of these are the e-banking services provided by the banks?

a. EFT

b. ATM

c. PoS

d. EDI

e. Credit cards

  1. Only a, b, d and e

  2. Only a, b, and d

  3. Only a, b and e

  4. Only a and b

  5. All of these


Correct Option: E
Explanation:

This is the correct answer, as all these are e-banking services. Electronic Funds Transfer, Automated Teller Machines, Electronic Data Interchange, Point of Sales, and Credit cards are e-banking services.

Which of the following is an incorrect feature of life insurance?

  1. It has elements of protection and investment or both.

  2. Insurable interest must be present at the time of effecting the policy, but need not be necessary at the time when the claim falls due.

  3. It is based on the principal of indemnity.

  4. Life insurance has a surrender or paid up value.

  5. There is an element of certainty in life insurance.


Correct Option: C
Explanation:

No, life insurance is not based on the principal of indemnity. The sum assured is either paid on the happening of a certain event or on maturity of the policy.

Which of the following are considered marine perils and are insurable in Marine insurance? a. Collision of ship with a rock, b. Ship attacked by enemies or pirates, c. Fire on the ship, d. Actions of the captain and crew.

  1. Only a, b and c

  2. Only a and b

  3. Only b and c

  4. Only b, c and d

  5. All of these


Correct Option: D
Explanation:

 Collision with rock is also considered a peril against which the ship can be insured.

Which of the following statements is/are correct? A. The insured must have insurable interest in the subject matter of the insurance in case of fire insurance. B. The contract of fire insurance is a contract of strict indemnity. C. The contract for fire insurance is for a period of one year after which it has to be renewed.

  1. Only A

  2. Only B

  3. Only C

  4. All of these

  5. None of the above


Correct Option: D
Explanation:

This is the correct answer as all the statements are correct about fire insurance.

In which of the following life insurance policies is the assured sum payable after the assured attains a certain age in installments?

  1. Whole life policy

  2. Endowment life assurance policy

  3. Joint life policy

  4. Annuity policy

  5. Children’s endowment policy


Correct Option: D
Explanation:

This is the correct choice. Under this policy the assured sum or policy money is payable after the assured attains a certain age in installments, such as monthly, quarterly, annual, etc. The premium is paid in installments over a certain period or single premium may be paid by the assured. This is useful to those who prefer a regular income after a certain age.

Which of the following types of warehouses are licensed to accept imported goods, prior to payment of tax and customs duty?

  1. Private warehouses

  2. Public warehouses

  3. Bonded warehouses

  4. Government warehouses

  5. Cooperative warehouses


Correct Option: C
Explanation:

This is the correct answer. Bonded warehouses are licensed to accept imported goods prior to payment of tax and customs duty. These are goods that are not permitted to eave the docks or airport till customs duty is paid.

Which of the following provides the National Saving Certificates as a financial service?

  1. Public sector banks

  2. Insurance

  3. Postal department

  4. Underwriters

  5. Cooperative banks


Correct Option: C
Explanation:

This is the correct answer. The postal department provides National Saving Certificates, PPF and Kisan Vikas Patra as a financial service.

DTH services are provided by which of the following service sectors?

  1. Transport companies

  2. Cellular companies

  3. Banks

  4. Postal department

  5. Insurance companies


Correct Option: B
Explanation:

This is the correct answer. Direct to Home is a satellite based media service provided by the cellular companies.

Which of the following is not the principals of insurance?

  1. Utmost good faith

  2. Proximate cause

  3. Contribution

  4. Consolidation

  5. Mitigation


Correct Option: D
Explanation:

This is not a principal of insurance. Insurance cannot be consolidated. Thus, this is the correct answer.

Which of the following is not a function of warehousing?

  1. Consolidation

  2. Stock piling

  3. Risk mitigation

  4. Price stabalisation

  5. Financing


Correct Option: C
Explanation:

No, warehousing cannot mitigate the risks.

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