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The person who receives the amount of insurance in case the insuree dies. The name of heir is to be mentioned in the insurance contract.

Correct option is (C) Rapid

In the words of Thomson, “Insurance is a provision which a prudent man makes against fortuitous or inevitable contingencies, loss or misfortunes. It is a form of spreading risks”.

The three secondary factions of commercial banks are: 

1. Banks collect money on behalf of customers understanding instructions. 

2. Banks make payments on behalf of customers. 

3. Banks accept valuables and documents for safe custody.

In addition to primary functions, commercial banks perform secondary functions. 

The secondary functions are divided into: 

i. Agency functions - The agency functions of commercial banks can be defined as the functions in which these banks act as an agent to their customers. The following are the agency functions of commercial banks: 

a. They collect cheques, dividends and interest on behalf of the customers and credit the amount in their accounts. 

b. They pay rent, insurance, premium, etc., on behalf of customers and deduct the amount from their accounts. 

c. They buy and sell foreign exchange. 

d. They buy and sell different securities like shares and debentures. 

e. They receive travel tickets and letters and book vehicles on behalf of their customers. 

f. They act as a trustee, executor of will, attorney, etc. 

g. They help the customers in filing tax returns. 

h. They provide the facility of bank draft that helps in remitting money from place to another. 

i. They act as an underwriter on behalf of a company. 

j. They provide the facility of dematerialised accounts to people dealing in shares and debentures. 

ii. Utility functions - A commercial bank performs various general utility functions for its customers. While performing these functions, a commercial bank does not act as an agent to its customers. 

The following are the utility functions of commercial banks: 

a. These banks provide locker facility to their customers. In this facility, customers can keep their valuable things like jewellery and important documents in bank lockers. 

b. These banks issue travellers’ cheques to their customers, because of which customers need not carry money with them while travelling (domestically or internationally). They can encash the travellers’ cheques at any branch worldwide. 

c. These banks also prepare letters of credit on the request of importers; these letters help in making international trade payments. 

d. These banks provide information to their customers regarding business conditions, payment rules, etc., of businesses in other countries. 

e. These banks also provide the facility of gift cheque to the general public.

Correct option is (A) Bonded

Correct option is (C) 1407 CE

e-Banking:

• Banking transactions done using electronic forms via. internet is called e-banking.
• With the arrival and advancement in internet services banks also started providing its services over internet.
• Due to internet all the branches of bank across the world got connected and started providing very fast, efficient and reliable financial services to its customers.
• The branch of a bank in which a person opens his bank account is called his ‘home branch’. E-banking has connected all the branches of its bank via. servers and internet and so the customers can perform the banking transactions from any branch.
• Banks have also set-up ‘e-corners’ at different places. These e-corners provide several facilities like withdrawing or depositing money from account using ATM machines, knowing the balance in account, etc.
• Whenever a person performs any such transactions in e-corner the bank sends him SMS on his registered mobile number.
• E-Banking saves time and expenses of both customer and bank and also aids faster banking.

Correct option is (C) During RTGS

Based on an account holder’s application the bank studies the financial ability of a person to pay the credit card debt every month. The bank then sets h s credit limit and issues him a credit card which he can . use for shopping for the limit sanctioned by the bank.

Bank is an institution that provides banking services.

• World’s first bank was started in city of Geneva in Switzerland in the year 1407 AD. (or say 1407 CE).
• The word ‘bank’ is derived from an Italian word; ’Banco’. This word has emerged from the era of Roman Empire where in the money lenders known as ‘macella’ used to establish their temporary shops on a long and narrow / bench called ‘bancu’ within a fencing.
• Historians have found that banking activities also existed in ancient time.

Unlike overdraft for taking cash-credit one needs to provide some security like raw material, finished goods, etc. as hypothecation.

Correct option is (B) Pay-order

Carry out foreign exchange (forex) transactions:

• The financial transactions related to import-export business can only be done through banks.
• Those banks that have got permission from central bank to provide Forex services can facilitate people to exchange foreign currencies in bank, send and receive documents related to foreign trade, etc.

Debit card can be used to make payments at shopping malls, online tickets, ATM centre for withdrawing money, etc.

Correct option is (A) Any amount

A debit card is a card which is used by the cardholders to make purchases and avail of services at different places without making cash payment but payment is deducted from or debited to the account of the debit cardholders immediately.

According to Reserve Bank of India (RBI), ‘Bank means an institution which collects deposits in order to lend them and with a condition to return them at the end of a fixed term whenever it is demanded.

To issue Letter of Credit (L/C):

• A letter of credit is a document from a bank guaranteeing that the seller will receive full payment at specified time if all the delivery conditions are fulfilled by the seller. These letters are generally needed in international transactions where buyers and sellers are unknown to each other.
• The bank collects certain deposit or some guarantee of similar amount from the person before issuing such letter. The bank earns commission by providing this service.

Correct option is (D) Housing loan

The market where foreign currency is traded is called foreign exchange market or forex.

Correct option is (B) Credit card

A cheque for a fixed amount that can be encashed while travelling from any bank after doing a specimen signature before the bank is called a traveller’s cheque.

Correct option is (D) Traveller’s cheque

Correct option is (B) Pay order

Correct option is (A) Demand draft

Issuing demand draft (DD):

• A demand draft (DD) is a cheque written by a bank (issuing bank) to another bank/branch asking it to pay money to the person/organization whose name is mentioned on it. Demand daft is a very secure medium for sending money to a person or an institute.
• The person who wishes to send money fills a form in the bank requesting it to issue the draft for the details mentioned in the form. Based on this the bank prepares a demand draft and mentions the receiver’s name on it and passes the order to its branch or associate bank to make the payment to the receiver. If the bank issues a draft that can be encashed only in the same branch then it is called pay-order.
• The sender of the DD needs to pay certain commission to the banks for this service.

A demand draft is a cheque written by a bank (issuing bank) to another bank or branch asking it to pay money to the person or organization whose name is mentioned on it.

Correct option is (B) Cheque

Correct option is (B) Cheque

• Demand draft is a cheque written by a bank (issuing bank) to another bank/branch asking it to pay money to the person/organization whose name is mentioned on it. Demand daft is a very secure medium for sending money to a person or an institute.
• The person who wishes to send money fills a form in the bank requesting it to issue the draft for the details mentioned in the form. Based on this the bank
  prepares a demand draft and mentions the receiver’s name on it and passes the order to its branch or associate bank to make the payment to the receiver.
• On the to-left corner of the demand draft the banker makes two lines across and writes ‘A/c payee’ in between. This means that the DD can be deposited in the account of only that person whose name is written on it.
• Unlike cheque a draft cannot get bounced or returned by the bank i.e. the person whose name is written on it will surely get the payment.

Services provided by a bank over and above functions like account maintenance, providing loans, etc. are discussed below:
1. To issue draft (i.e. demand draft/banker’s draft):

• Demand draft is a cheque written by a bank (issuing bank) to another bank/branch asking it to pay money to the person/organization whose name is mentioned on it. Demand daft is a very secure medium for sending money to a person or an institute.
• The person who wishes to send money fills a form in the bank requesting it to issue the draft for the details mentioned in the form. Based on this the bank prepares a demand draft and mentions the receiver’s name on it and passes the order tc its breach or associate bank to make the payment to the receiver. Since ‘A/C Payee’ is mentioned on the draft, it can be deposited only in the account of the person whose name is written on it.
• Unlike cheque, a demand draft never bouncer.
• The sender of the DD needs to pay certain commission to the bank for this service.

2. Banker’s cheque (pay-order):

• A pay-order is similar to demand-draft. The cheque issued by the bank against the payment it accepts is called pay-order.
• Since the cheque is issued by the bank it is also called banker’s cheque.
• Pay-order can be enchashed only in the same city where it was issued.

3. Real-time Gross Settlement (RTGS):

• -» Real-time Gross Settlement (RTGS) is a special fund transfer system where in one can transfer money from one bank to another within India, on a ‘real-time’ basis i.e. the money will be transferred immediately without waiting period and on ‘gross-settlement’ basis.
• The bank through which RTGS is done is called an RTGS member bank. Each member bank is allotted a unique code called IFSC code for identification and transactional purposes. IFSC code is an 11 digit alpha numeric (i.e. combination of alphabets and numbers) code.
• The Institute for Development and Research on Banking Technology (IDRBT), Hyderabad provides IFSC codes to all the banks.

4. National Electronic Fund Transfer (NEFT):

• NEFT stands for National Electronic Funds Transfer. It is an Indian system of electronic transfer of money from one bank or bank branch to another.
• The banks or their branches that support NEFT have to become a part of NEFT network.
• The money is transferred from account of sender to account of receiver having an account in same bank or another bank via. internet.
• In order to transact one need to have an 11 digit alpha numeric IFSC code of the bank and branch in which the amount is to be transferred.
• The transfer of money usually takes place on the same day. However, the settlement of transactions take place in hourly batches i.e. For example, if one initiates a transaction and if the settlement time is over he needs to wait till the next settlement time to get his funds transferred. RBI has decided various slots of settlement times in a day.

5. Bank over-draft:

• Over-draft is a facility given to businessman having current account in the bank.
• The bank may allow a businessman to over-draw amount from his current account compared to the money present in his account i.e. his credit balance. This facility is called over-draft facility.
• A businessman needs to provide some self-guarantee or someone’s guarantee to assure repayment of the over-drawn amount along with bank’s interest. One needs to pay interest only on the amount withdrawn in excess to available in account. Based on the account holder’s financial credit the bank sanctions (approves) the limit the holder wui be allowed to withdraw.

6. Cash-credit:

• A cash credit is a drawing account for drawing money within a specific credit limit approved by the bank against some security.
• The businessman needs to pay interest pre-decided by the bank on the amount he takes as cash-credit.

7. Loan:

• An amount of money that a bank provides to a borrower against a fixed rate of interest usually for a long term and against some security is called a loan. The bank gives the loan amount altogether.
• Bank provides several types of loans like loans for buying a house, furniture, renovation, vehicle, expanding business, etc.
• To make sure the borrower repays the loan the bank keeps borrower’s immovable property such as house, office, etc. with it as mortgage.
• The terms and conditions of repayment are set at the time of approving the loan.

A good is a physical product which can be delivered to a buyer and involves the ownership from seller to customer. For example; mobile phone, book, purse etc. Services are those separately identifiable, essentially intangible activities which provide satisfaction of wants, and are not necessarily linked to the sale of a product or another service. For example, communication services, teaching services, legal services etc.

Bonded warehouses are located at ports. 

Explanation: 

Bonded warehouses are located at or near ports. Imported goods are kept in these warehouses before the payment of the custom duty. They are operated by both the government and custom authorities

(a) Professional Sportsmen

(b) Government Warehouses 

Services are essentially intangible activities which are separately identifiable and provide satisfaction of wants. We cannot kept it in stock. Their purchase does not result in the ownership of anything physical. Services involve an interaction to be realized between the service provider and the consumer.

A good is a physical product capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer. Goods also refer to commodities or items of all types, except services, involved in trade or commerce.

Correct Answer is: c. Central warehousing corporation

i. True

ii. False

iii. False

iv. False

v. True

Correct Answer is: b. Unilaterl contract 

As per this principle when the insuree claims for the financial loss he facufr for a product and receives the compensation he losses the ownership of that product and the insurance company becomes the owner of the damaged product.

An insurance contract is the contract of utmost good faith where as a general contract is the agreement between two parties and enforceable by law.

(c) Indemnity contract 

The principle of subrogation is an extension of the principle of indemnity. This principle appliers to all contracts insurance other than life insurance and personal accident insurance.

i. exchange bank

ii. NABARD, RBI, SIDBI, EXIM.

iii. Parcel

iv. Blanket policy.

Since mobiles can be very easily misplaced, stolen or robbed, the banks.

Correct option is (D) Both (A) and (C)