Banking and Insurance Part2

IMPORTANT QUESTIONS FOR ANNUAL EXAM PREPARATION
CH-1-INTRODUCTION TO BANKING
1. Why are Banks used for depositing Money?

a) Safety b) Liquidity c) None of the above d) Both of the above
2. Which Act defines the business functioning of a bank in India?

a) Banking Regulation Act 1939 b) Banking Regulation Act 1947 c) Banking Regulation Act 1949 d) Reserve Bank of
India Act 1934
3. A person becomes a customer of the bank as soon as he ____

a) Walks into the Branch b) Opens account with the Bank c) Takes Account opening form d) Speaks to the Branch
Manager
4. Selling Bank’s other products to the existing customers is called?

a) Cross Selling b) Retailing c) Customer outreach d) Customer accretion
5. In deposit accounts, the main relationship between Bank and customer is

a) creditor - bank, debtor - customer b) creditor - customer, debtor - Bank c) agent – principal d) only A and B 31
6. When a Bank lends money to a corporate , the relationship is _____

a) borrower and lender b) creditor - debtor c) debtor - creditor d) customer and client
7. What relationship is created when the bank collects a cheque in clearing?

a) Holder for value b) Clearing member and principal c) Agent - principal d) Collecting Bank and holder
8. What is the aim of Small Finance Banks?
9. What are NBFC?
10. Briefly explain the intermediation role of the Bank?
11. When a customer becomes Bank’s customer?
12. What is the need of banking system?
13. Explain the main functions of RBI?
CH-2-DEPOSIT ACCOUNTS
1. A nominee in the Bank account is the ______ on behalf of legal heirs.
a) Owner of asset b) Trustee c) Agent d) Principal
2. An instruction by a customer to a bank to pay a specified amount of money on a specified date or dates to a specified
payee is known as:
a) One time instruction b) Recurring instruction c) Standing Instruction
3. Banks generally don’t pay interest on money deposited in which of the following account?
a) Savings account b) Current account c) Fixed deposit account d) Overdraft Account
4. What are the KYC documents required by the Bank?
a) Photograph b) Identity Proof c) Address Proof d) All of the Above
5. When any FDR is lost by a customer of a bank, what document is executed?

a) guarantee bond b) government bond c) promissory bond d) indemnity bond
6. Which product is normally costliest from customer point of view?

a) Home Loan b) Personal Loan c) Credit Card loan
7. What are the features of Current accounts?
8. What are the features of Savings accounts?
9. Explain the factors affecting the rate of interest?
10. What are the advantages of recurring deposits?
11. What are the advantages of Joint accounts?
CH-3-UTILITY SERVICES OF BANKING

1. In which of the following, Bank account is not required to be opened.
a) Credit card b) Debit Card c) None of the above d) Both of the above
2. Due to the implementation of the CBS, Bank Customers can access their account at any branch of the Bank
a) True b) False
3. Which of the following is a short term loan to the customer? a) Credit card b) Debit card c) Both of the above d) None
of the above
4. Standing instructions can be used for ____

a) One time payment b) Repeated payments at regular period c) Both of the above d) None of the above
5. What are the advantages of ATMs?
6. What is the definition of Core banking?
7. Explain what is standing instruction?
8. Differentiate between Credit Card and Debit card?
9. Explain how implementation of CBS has helps the Banks?
CH-4-INTRODUCTION TO INSURANCE
1. Insurance is a mechanism by which the person exposed to the potential ______, arising out of the events beyond his
control, transfers the financial loss; in part or in full to a ________party.
2. The person who takes the insurance is called _______ and the Organization that provides Insurance is called ______
3. The consideration under Contract of Insurance is called ___________.

4. General Insurance Covers all types of risks including risk of loss of life. State whether this is: Correct / Incorrect
5. Enumerate the benefits of Insurance.
6. Enumerate the differences between Life Insurance and General Insurance.
CH-5 AND 6-PRINCIPLES OF INSURANCE AND INSURANCE ORGANIZATION

1. The Body or Authority that regulates Insurance Sector in India is called _________________________.
2. After nationalization General Insurance Corporation had four subsidiaries. Three are as follows: National Insurance
Company Ltd New India Insurance Company Ltd Oriental Insurance Company Ltd Name the fourth subsidiary?
3. Explain the concept of Liberalization in Insurance Sector.
4. Enumerate the Objectives of IRDA

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IMPORTANT QUESTIONS FOR ANNUAL EXAM PREPARATION

1. Why are Banks used for depositing Money?

2. Which Act defines the business functioning of a bank in India?

3. A person becomes a customer of the bank as soon as he ____

4. Selling Bank’s other products to the existing customers is called?

5. In deposit accounts, the main relationship between Bank and customer is

6. When a Bank lends money to a corporate , the relationship is _____

7. What relationship is created when the bank collects a cheque in clearing?

8. What is the aim of Small Finance Banks?

9. What are NBFC?

10. Briefly explain the intermediation role of the Bank?

11. When a customer becomes Bank’s customer?

12. What is the need of banking system?

13. Explain the main functions of RBI?

5. When any FDR is lost by a customer of a bank, what document is executed?

6. Which product is normally costliest from customer point of view?

7. What are the features of Current accounts?

8. What are the features of Savings accounts?

9. Explain the factors affecting the rate of interest?

10. What are the advantages of recurring deposits?

11. What are the advantages of Joint accounts?

CH-3-UTILITY SERVICES OF BANKING

4. Standing instructions can be used for ____

5. What are the advantages of ATMs?

6. What is the definition of Core banking?

7. Explain what is standing instruction?

8. Differentiate between Credit Card and Debit card?

9. Explain how implementation of CBS has helps the Banks?

3. The consideration under Contract of Insurance is called ___________.

5. Enumerate the benefits of Insurance.

6. Enumerate the differences between Life Insurance and General Insurance.

CH-5 AND 6-PRINCIPLES OF INSURANCE AND INSURANCE ORGANIZATION

3. Explain the concept of Liberalization in Insurance Sector.

4. Enumerate the Objectives of IRDA

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