Students of class 11 Business Studies should refer to MCQ Questions Class 11 Business Studies Business Services with answers provided here which is an important chapter in Class 11 Business Studies NCERT textbook. These MCQ for Class 11 Business Studies with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 11 Business Studies. The following MCQs can help you to practice and get better marks in the upcoming class 11 Business Studies examination

Chapter 4 Business Services MCQ with Answers Class 11 Business Studies

MCQ Questions Class 11 Business Studies Business Services provided below have been prepared by expert teachers of grade 11. These objective questions with solutions are expected to come in the upcoming Standard 11 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. In case of fire insurance policy, the insurer is liable to compensate for the loss only when the proximate cause of loss is fire.   
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. Mobile banking refers to the process of carrying out banking transactions online.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. ……… account is meant for people who wish to save a part of their income to safeguard the future and can interest on it.     
(a) Current account
(b) Savings account
(c) Recurring account
(d) Multiple option account

Question. When a property is insured by more than one insurance (i.e. in case of multiple insurance), the insurers are to share losses in what proportion?   
(a) Ratio of premiums received
(b) Ratio of duration of insurance
(c) Ratio of amount insured
(d) Equal ratio

Question. …… is a temporary arrangement under which a dpositor is allowed to draw by cheque more than the amount available to his credit upto a specified limit. 
(a) Cash credit
(b) Term loan
(c) Bank overdraft
(d) Consumer credit

Question. There are services which are experienced differently by different customers. These kind of services depend upon customers preferences and demands and are known as   
(a) Personal services
(b) Social services
(c) Business services
(d) Financial services

Question. As per the basic principle of the fire insurance policy, it is the primary duty of the insured to take reasonable steps to prevent fire from occuring and to minimise the losses or damage to the insured property. It is the duty of the insured to behave with great prudence and not to be careless just because he has an insurance cover. This principle is known as the principle of     
(a) indemnity
(b) proximate cause
(c) subrogation
(d) mitigation

Question. The commission charged on banker’s cheque is more than that on a bank draft.   
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. When the loss is the result of two or more causes, which of the following terms refers to the direct cause of which the loss is the natural consequence?   
(a) Subrogation
(b) Proximate
(c) Mitigation
(d) Indemnity

Question. Mr. Virat, a businessmen, has a current account in SBI, his current account shows balance of just ` 40,000, while he urgently needs ` 2,50,000 to pay off one of his creditors. He approaches SBI to allow him to withdraw ` 2,50,000, using the facility extended by the bank to him due to his creditworthiness. The bank agrees to it. Identify the facility which has been provided by SBI to Virat.   
(a) Borrowing
(b) Bank overdraft
(c) Banker’s cheque
(d) None of these

Question. Manav gets the information about the rate of interest on fixed deposit by a telephonic conversation with an officer of a bank. Name this type of banking.     
(a) Internet banking
(b) e-banking
(c) Tele-banking
(d) None of these

Question. A contract by which the insurer, in consideration of a certain amount known as premium, undertakes to pay to a person or his heirs a certain amount of money on his death or on attaining a certain age is known as   
(a) General insurance
(b) Life insurance
(c) Special insurance
(d) Burglary insurance

Question. Rakesh took the life insurance policy of his wife. After one year, the couple got divorced and after two years, his wife met with an accident and died on the spot. Rakesh entitled to get compensation from the insurance company, if Rakesh was regularly paying the premium amount?   
(a) Yes
(b) No
(c) Can’t say
(d) None of these

Question. The minimum period of deposit in case of recurring deposit account is ……… and maximum is ……… .     
(a) 12months, 2 years
(b) 6 months, 10 years
(c) 4 months, 1 year
(d) 8 months, 3 years

Question. In case of cash credits, loan amount is credited in the borrower’s account andinterest is charged on the total amount credited.   
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. If the cargo does not reach its destination due to damage or destruction in the transit, the shipping company is not paid freight charges. To overcomelosses suffered by such  circumstances, shipping companies opt for   
(a) ship insurance
(b) hull insurance
(c) cargo insurance
(d) freight insurance

Question. Which of the following is not applicable in life insurance contract?      
(a) Conditional contract
(b) Unilateral contract
(c) Indemnity contract
(d) None of the above

Question. It is a type of payment instrument in which money is loaded in advance to make purchases. Identify which type of digital payment method is described above?   
(a) Credit card
(b) Debit card
(c) Prepaid card
(d) None of these

Question. The amount deposited in a savings bank account of a person is an asset for the depositor, while on the other hand it is a liability for the bank. Based on its nature it can be classified as a     
(a) time liability
(b) demand liability
(c) long-term liability
(d) None of these

Question. In recurring deposit account, the depositor enjoys the liquidity of saving account and interest rate of fixed deposit account.   
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. ……. is a contract of insurance, in which an insurer enters into a contract with another insurer to insure the whole or a part of risk covered by the first insurer.   
(a) Double insurance
(b) Hull insurance
(c) Reinsurance
(d) Burglary insurance

Question. Abhinav took a fire insurance policy for his property worth ` 5,00,000 with two insurers: ICICI Lombard General Insurance Co. Ltd. for ` 4,00,000 and Bajaj Allianz General Insurance Co. Ltd. for ` 20,000. An electric short circuit in his property caused fire and it resulted in a loss of ` 1,50,000. He filed a claim for ` 100,000 against each of the two insurance companies. Which principle of insurnace has been highlighted in given case?   
(a) Mitigation
(b) Proximate cause
(c) Contribution
(d) Indemnity

Question. Joint life policy is taken up by a person for his/her children to meet the expenses of their education or marriage.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

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

Question. The main objective of this account is to enable the businessman to conduct its business transactions smoothly.     
(a) Multiple opiton deposit account
(b) Savings account
(c) Recurring deposit account
(d) Current account

Question. Banks generally put certain restrictions on number of withdrawals from current account.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. Which of the following servicesprovides protection from risk?     
(a) Banking
(b) Transportation
(c) Insurance
(d) Postal and Telecom

Question. Customers are required to deposit a specified sum of money every month in his account in case of ……, which is also known as cumulative time deposit account.   
(a) savings account
(b) current account
(c) recurring deposit account
(d) joint account

Question. The purpose of principle of ……… is to put the insured, in the event of loss, in the same position that he occupied immediately before the happening of the event.   
(a) subrogation
(b) indemnity
(c) mitigation
(d) None of these

Question. ‘‘On the other hand, his mother ……… the money she saves.’’ Identify the type of bank account used by his mother.       
(a) Saving account
(b) Current account
(c) Recurring account
(d) None of these

Question. Mr Kabir Khan desires to have two benefits from his bank account, first, to earn higher interest on balance and second, to face minimum risk of dishonouring a cheque. Which type of account should be opened by him in Indus Bank?   
(a) Current account
(b) Saving account
(c) Multiple option account
(d) Recurring account

Question. If a person take fire insurance policy from 3 insurers. During loss due to fire he will get     
(a) loss amount compensation from all three separately
(b) loss amount, which will be contributed by all three
(c) policy amount from all insurers
(d) None of the above

Question. Mobile wallets provide which kind of services to the society?     
(a) Sending and receivingmoney
(b) Making payments to merchants
(c) Online purchases
(d) All of the above

Question. A countrywide system through which person can electronically transfer from one bank branch to another person having an account with the other bank branch in the country is known as   
(a) Pay order
(b) RTGS
(c) Bank draft
(d) NEFT

Question. In case of which card, a holder can spend money only upto the balance in his account?     
(a) Credit card
(b) Debit card
(c) Both (a) and (b)
(d) None of these

Question. A electronic fund transfer system under which transfer of funds take place from one branch of bank to another branch on real time and on grow basis is know as     
(a) NEFT
(b) EFT
(c) RTGS
(d) ATM

Question. A cheque which is deposited only to the payee’s bank account is known as ……… .   
(a) Bearers cheque
(b) Demand draft
(c) Crossed cheque
(d) None of these

Question. This health insurance policy combines health insurance with investment. The insurer pays back a specified amount atthe end of the period. Identify which  policy is this?   
(a) Individual mediclaim policy
(b) Family floater policy
(c) Unit linked health plans
(d) None of the above

Question. A company has undertaken a fire insurnace policy for ` 10 lakh. After two months, due to fire it incurred a loss of ` 3 lakh. How much money will the company get as compensation?   
(a) `10 lakh
(b) `3 lakh
(c) `5 lakh
(d) `2 lakh

Question. State which of the following statements is false?   
(a) Recurring deposit account is a time deposit account
(b) Number of transactions every month is limited in saving bank account
(c) A current account can be opened with an initial deposit of`5,000
(d) Fixed deposit account is demand deposit account

Question. Anuj has taken a loan from Avi against the security of his factory. Can Avi take a fire insurance policy of that factory?     
(a) No
(b) Yes
(c) Can’t say
(d) None of the above

Question. How many types of losses are there in proximate cause?     
(a) Insured perils
(b) Uninsured perils
(c) Both (a) and (b)
(d) None of these

Question. In which type of insurance, ‘Principle of Indemnity’ is not applicable?   
(a) Marine insurance
(b) Fire insurance
(c) Life insurance
(d) None of these

Question. ‘‘It is another type of digital payment method, in which ‘*99#’ can be used to carry out mobile transactions.’’ Which type of digital payment is described above?     
(a) Unified Payment Interface (UPI)
(b) Unstructured Supplementary Service Data (USSD)
(c) Aadhaar Enabled Payment System (AEPS)
(d) None of the above

Question. ‘‘Raksha being a businessman ……… amount of transactions in a day.’’ Identify the type of bank account used by Raksha.     
(a) Saving account
(b) Current account
(c) Fixed deposit account
(d) Recurring account

Question. Which of the following is the full form of ATM?   
(a) Automatic Take Money
(b) Any Time Money
(c) Automated Teller Machine
(d) None of the above

Question. Savings account is suitable for mobilisation of savings of people.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. Under …… insurance, subject matter is ship, cargo or freight.   
(a) life
(b) marine
(c) reinsurance
(d) None of these

Question. Banker’s cheque is also known as …… .     
(a) Overdraft
(b) Cash credit
(c) Pay order
(d) None of these

Question. Under which policy, policy money is payable after the assured attains, a certain age in monthly, quarterly, half yearly or annual installments?     
(a) Annuity policy
(b) Life insurance policy
(c) Both (a) and (b)
(d) None of the above

Question. Kavya took a marine policy worth` 2,00,000 to protect her goods from the perils of sea. On the way, the goods  were spoiled by rats. She suffered a loss of ` 100,000. She filed a claim for loss against the insurance company. Which principal of insurance is highlighted in the given case?     
(a) Subrogation
(b) Mitigation
(c) Proximate cause
(d) Contribution

Question. Name the banking service in which thecustomer can conduct banking activities like managing savings, checking accounts, applying for loans etc over the internet.   
(a) Mobile banking
(b) e-banking
(c) RTGS
(d) None of these

Question. When a customer makes a payment using the credit card, his accountbalance is automatically reduced.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. When a ship is insured against any type of danger, it is know as     
(a) Life insurance
(b) Fire insurance
(c) Hull insurance
(d) None of the above

Question. Mr Ankit has a current account in State Bank of India, he is having many transactions of funds transfer every day. One day he asked bank manager to transfer ` 40,000 to a client in Mumbai immediately. The bank manager replied to transfer the fund immediately minimum amount should be ` 2,00,000. Identify the concept discussed in the above case.   
(a) NEFT
(b) Digital cash
(c) RTGS
(d) None of these

Question. ‘‘The insured must have an interest in the subject matter of insurance’’. Which principle of insurance is related to this statement?   
(a) Principle of mitigation
(b) Principle of insurable interest
(c) Principle of proximate cause
(d) None of the above

Question. Nitesh insured his factory for ` 5,00,000 against fire. Due to fire in his factory, he suffered a loss of stock worth ` 3,00,000. He is of the opinion that he can recover the entire policy amount of ` 5,00,000 from the insurance company. Identify the relevant insurance principle in this regard.   
(a) Subrogation
(b) Mitigation
(c) Indemnity
(d) None of these

Question. AEPS service can be availed only when Aadhaar number is registered with the bank where account is held.     
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. It is an electronic card issued by a financial institution authorising the holder to buy goods or services on credit.     
(a) Debit card
(b) Credit card
(c) Both (a) and (b)
(d) None of these

Question. According to you, how much compensation should be reimbursed by insurance company?   
(a) `43 lacs
(b) `13 lacs
(c) `3 lacs
(d) `25 lacs

We hope the above multiple choice questions for Class 11 Business Studies for Chapter 4 Business Services provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Business Services is an important chapter in Class 11 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 11 students. Please go through these and let us know if you have any feedback in the comments section.