MCQ Chapter 4 Business Services Class 11 Business Studies

Please refer to Business Services MCQ Questions Class 11 Business Studies below. These MCQ questions for Class 11 Business Studies with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Business Services will help you to prepare for the exams and get more marks.

Business Services MCQ Questions Class 11 Business Studies

Please see solved MCQ Questions for Business Services in Class 11 Business Studies. All questions and answers have been prepared by expert faculty of standard 11 based on the latest examination guidelines.

MCQ Questions Class 11 Business Studies Business Services

Question. Insurance is a contract between _________ and ________
(a) Insurer, insured
(b) Agent, insurance
(c) Insured, insurance
(d) Insurer, family

Question. In which year Insurance Act was amended in India?
(a) 1940
(b) 1928
(c) 1938
(d) 1945

Question. In which year Children’s Money Back plan was introduced?
(a) 1985
(b) 1988
(c) 1995
(d) 1989

Question. ________ banks are included in the second schedule of RBI.
(a) Scheduled
(b) State
(c) Commercial
(d) Corporation

Question. In which year Crop Insurance scheme was introduced in India?
(a) 1978-79
(b) 1985-86
(c) 1948-49
(d) 1990-91

Question. The fee charged by the insurer on account of providing services is called
(a) Premium
(b) Profit
(c) Dividend
(d) Instalment

Question. Which of the following is not a function of General Insurance?
(a) Risk sharing
(b) Assist in capital formation
(c) Cattle insurance
(d) None of the above

Question. The study of communication through touch is ________
(a) Chronemics
(b) Haptics
(c) Proxemics
(d) Semantics

Question. This category of the cheque is to be deposited only in the payee’s account.
(a) Crossed Cheque
(b) Bearer Cheque
(c) Both Crossed Cheque and Bearer Cheque
(d) None of the above

Question. Which of the following element is present in the case of Life Insurance?
(a) Security, Investment
(b) Security
(c) Investment
(d) Profit

Question. Which of the following has the largest number of branches across India?
(a) Postal offices
(b) Banks
(c) SBI
(d) Insurance companies

Question. Baking and insurance comes under________type of service:
(a) Business
(b) Social
(c) Personal
(d) None of these

Question. In which year Crop Insurance scheme was introduced in India?
(a) 1978-79
(b) 1985-86
(c) 1948-49
(d) 1990-91

Question. Which of the elements is not a part of the communication process?
(a) Decoding
(b) Communication
(c) Channel
(d) Receiver.  

Question. Two ways in which Electronic fund transfer can be done are:
(a) NEFT and PFT
(b) PFT and NFT
(c) NEFT and RTGS
(d) RTGS and NFT  

Question.The fee charged by the insurer on account of providing services is called
(a) Premium
(b) Profit
(c) Dividend
(d) Instalment

Question. The validity period of a demand draft is
(a) One month
(b) Two Months
(c) Three months
(d) Six Months

Question.__________services are helpful to the business for establishing links with the outside world:
(a) Warehousing
(b) Banking
(c) Insurance
(d) Communication  

Question. A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?
(a) Principle of Indemnity
(b) Principle of Insurable Interest
(c) Principle of Subrogation
(d) Principle of Contribution

Question. Policy taken by individuals for their children’s marriage or education expenses are:
(a) Children’ endowment policy
(b) Whole life policy
(c) Endowment life assurance policy
(d) Annuity policy

Question. Common function of a bank is:
(a) To accept deposits
(b) To lend money
(c) Earning profit
(d) All of these

Question. Time utility is created by
(a) Transportation
(b) Banking
(c) Warehousing
(d) Communication

Question. Which of the following element is present in the case of Life Insurance?
(a) Security, Investment
(b) Security
(c) Investment
(d) Profit

Question. In case of double insurance, the insurers are to share the losses in proportion to the amount assured by each of them. Which principle of insurance is this?
(a) Proximate Cause
(b) Mitigation
(c) Contribution
(d) Subrogation

Question. The functions of a commerce include
(a) acceptance of deposits
(b) granting of loans
(c) Locker facility
(d) all the above

Question. Which of the following has largest number of branches across India?
(a) Postal offices
(b) Banks
(c) SBI
(d) Insurance companies  

Question. From the following which of this is covered under marine Insurance?
(a) Whole Life policy
(b) Liability Insurance
(c) Endowment policy
(d) Act only

Question. Which of the following bank acts as a government banker?
(a) Specialized Bank
(b) Cooperative bank
(c) Central bank
(d) Commercial bank

Question. In which type of insurance, loss is not measurable.
(a) Life Insurance
(b) Fire Insurance
(c) Marine Insurance
(d) Burglary Insurance

Question. The person who insures the risk is:
(a) Assured.
(B) Insured.
(c) Underwriter.
(d) Party

Question. If a person has insured for Rs 4, 00,000. A fire broke out and the actual amount of loss amounted to Rs 2, 50,000. How much amount can he claim:
(a) 4,00,000.
(B) 2,00,000
(c) 2,50,000
(d) None of the above

Question. Proximate cause means :
(a) Natural causes.
(B) Human causes
(c) Economic causes
(d) Losses which are caused by perils stated in the policy.

Fill in the Blanks:

Question. John took a health insurance policy. At the time of taking policy, he was a smoker and he didn’t disclose this fact. He got cancer. Insurance company won’t pay anything as John didn’t reveal the important facts. John has violated the insurance principle of______________

Question. The principle of insurance that gives right to an insurer to stand in place of the insured after settlement is called ______________. 

Question. Without insurable interest the contract of Life Insurance is ______________.

Question. Principle of indemnity is not applicable to ______________.

Question. Written contract between the insured and the insurer is known as______________.

True / False:

Question. Buying and selling of shares and debentures on instructions is a service provided by Central Bank.

Question. Crossed Cheques are to be deposited only in the payees account.

Question. Savings account deposits can be withdrawn to the extent of the balance at any time without any prior notice.

Question. Foreign exchange bank is a type of specialized bank.

Question. Load on branches of the banks can be reduced by e-banking .

Match the following:

Question. Shyamlal owns a General Insurance company and his friend deals with only Life Insurance. Assist a customer who wants to understand Life Insurance and General Insurance.

1. This insurance helps his family members after his death.	(a) Fire Insurance
2. Insurance is for a period of one year and then renewed.	(b) Marine Insurance
3. Protection against loss by marine perils.	(c) Crop Insurance
4. Protection to crops for the loss caused.	(d) Life Insurance

Question.

1. Uberrimae Fidei	(a) Indemnity
2. ATM is a service provided by	(b) Utmost good faith
3. Life Insurance is not based on the principle of	(c) Subrogation
4. DTH service is a type of	(d) E-banking
5. It is the duty of the insured to take reasonable steps to minimize the loss or damage to the insured property	(e) Telecom Service
	(f) Mitigation

Question. Match the following on the basis of types of life insurance policies:

1. Policy is taken by person for his/her children to meet expenses of their education/marriage.	(a) Joint Life Policy
2. Policy is taken by two or more persons	(b) Annuity Policy
3. Policy in which assured sum or policy money is payable after assured attains certain age in monthly, quarterly, half yearly or annual installments	(c) Endowment Life Assurance Policy
4. Insurer undertakes to pay a specified sum when the insured attains a particular age or on his death whichever is earlier	(d) Whole Life Policy
5. Policy in which the amount is not paid to the insured before death of the assured.	(e) Children‟s Endowment Policy

Question. Ramesh is a teacher who wants to open an account in a bank with an aim to do saving. He approaches the Bank Manager who guides him of various accounts and their utilities. Assist him to identify the features of various accounts.

1. The accounts that encourages savings	(a) Fixed accounts
2. Amount is deposited for a fixed period. and carries higher rate of interest .	(b) Current accounts
3. Amount is withdrawn regularly, especially for business	(c) Saving accounts
4. A fixed amount is deposited regularly for a fixed period.	(d) Recurring deposit