Free Business Services 02 Practice Test - 11th Grade - Commerce 

Question 1

What kind of activity do airliners and home repairers fall under?  

A.

Goods 

B.

Service 

C.

Both A & B 

D.

None of the above 

SOLUTION

Solution : B

Airliners and home repairers fall under service activity. 

Question 2

State True or False. If the bearer cheque gets stolen, even an outsider can take advantage of the situation and steal the person's money. 

A.

False

B.

True

SOLUTION

Solution : B

True. If the bearer cheque gets stolen, even an outsider can take advantage of the situation and steal the person's money. 

Question 3

State True or False. A crossed cheque can be crossed over the entire cheque or on the top right corner of it. 

A.

True 

B.

False

SOLUTION

Solution : B

False. A crossed cheque can be crossed over the entire cheque or on the top left corner of it. 

Question 4

________________________________ is a functional 24 * 7 facility, fund transfer at any time of the day. 

A.

national electronic fund transfer 

B.

real-time gross settlement 

C.

immediate payment service 

D.

none of the above 

SOLUTION

Solution : C

Immediate payment service is a functional 24 * 7 facility, fund transfer at any time of the day. 

Question 5

A ___________ is the most developed credit instrument of the bank, for the withdrawal of deposits. 

A.

demand draft 

B.

funds

C.

cheque 

D.

none of the above 

SOLUTION

Solution : C

A cheque is the most developed credit instrument of the bank, for the withdrawal of deposits. It is the most convenient and an inexpensive medium of exchange.

Question 6

State True or False. The life insurance premium is paid in one lump sum. 

A.

True 

B.

False 

SOLUTION

Solution : B

False. The life insurance premium is paid in one lump sum, or periodically i.e, monthly, quarterly or half yearly or yearly. 

Question 7

"Insured must disclose the relevant facts related to subject matter". Identify the principle highlighted?

A.

Principles of indemnity.

B.

Principle of utmost good faith.

C.

Principle of contribution

D.

Principle of subrogation.

SOLUTION

Solution : B

Principle of utmost good faith.The principlemeans that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance.

Question 8

State True or False. Indian post and telegraph department provides various postal services across India. 

A.

True 

B.

False 

SOLUTION

Solution : A

True. Indian post and telegraph department provides various postal services across India. For these services, the whole country has been divided into 22 postal circles. 

Question 9

A warehouse that is used for storage of goods by traders, manufacturers or any member of the public after the payment of a storage fee or charges. 

A.

Private Warehouse 

B.

Government Warehouse 

C.

Cooperative Warehouse 

D.

Public Warehouse

SOLUTION

Solution : D

A warehouse that is used for storage of goods by traders, manufacturers or any member of the public after the payment of a storage fee or charges is known as the public warehouse. The government regulates the operation of these warehouses by issuing a license for them to private parties. 

Question 10

Food Corporation of India, State Trading Corporation and Central Warehousing Corporation are examples of which warehousing. 

A.

Private Warehouses

B.

Public Warehouses 

C.

Government Warehouses 

D.

Cooperative Warehouses

SOLUTION

Solution : C

Food Corporation of India, State Trading Corporation and Central Warehousing Corporation are examples of Government warehouses.