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The role of transport are explained as follows:

(1) Helps in production : Transport carries raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. It also carries labour from their residence to place of factory. It carries finished products from the place of production to the places of consumption or markets.

(2) Expanding markets : Producers and consumers are separated by geographical distance. Transport bridges this gap and facilitates distribution. It makes goods available wherever they are demanded. This helps to widen the market. With the development and growth of transport, the domestic and international markets for both agricultural and industrial products expand, bringing the prosperity to the country.

(3) Creates place utility : Transport is a public utility service which creates time and place utilities. Transport mainly creates place utility by carrying goods from the place of plenty to places where they are in more demand but not available, e.g. Apples which are produced on large quantity in Himachal Pradesh are brought over to Mumbai and other places through out the country by transport to get high prices.

(4) Stability of prices : Transport carries goods from the areas of plenty to the areas of scarcity. It helps to regulate and balance the supply of goods and services in relation to demand and thereby helps to stabilise the prices of goods. The shortage of goods at any place can be easily removed by efficient transport system.

(5) Creates employment : Transport creates job opportunities directly for transport owners, drivers, conductors, cleaners, mechanics, helpers, etc. It helps to move labour and goods from the place of abundance to the place of scarcity. This movement of goods and labour creates indirect employment. Transport an industry by itself has provided job opportunities to millions of people all over the world.

(6) Improves standard of living : By generating employment, transport leads to increase purchasing power with people. Further, it makes products of their choice from different regions available in local markets. This results in higher standard of living.

(7) Cost reduction : Efficient, cheap and quick means of transport facilitate the reduction in the cost of production and distribution of goods. On account of low cost of production, the goods can be sold at low prices which increase their demand and widen market. Increase in demand again leads to large scale production of goods and supply.

(8) Provides help during emergency : The life of the people is badly affected during natural calamities such as floods, earthquakes, landslides, droughts, etc. and also during man-made disasters such as bomb blasts, riots, accidents, etc. In such circumstances, urgent and timely help in the form of food, water, medicines, clothes and other provisions, etc. can be provided quickly with the help of transport to save the lives of affected people. Rescue operations are possible only with the help of helicopters, fire brigades, railways, etc.

(9) Economic development : An efficient transportation system contributes to the rapid development of commerce and industry. Transport also helps to develop agriculture of a country. New industries are established and rapidly developed due to efficient network of transport. Further, a country can make progress in international trade and thereby earn foreign exchange only through efficient transport services.

Transport plays a major role in our lives. It facilitates the movement of goods, raw materials and labour from one place to another. 

Some important functions of transport are as follows: 

i. Aids in the production process - Transport helps traders or manufactures to procure raw materials from far-off places and from places where they are available at the cheapest rate. Hence, it helps in procuring raw materials for production. 

ii. Helps in the expansion of markets - Through transportation, sellers or traders can sell their goods in the markets that are far-off. Thus, it aids in the expansion of markets as well. 

iii. Stabilises prices - Transportation helps in making the goods available whenever and wherever they are in demand. Thus, it helps in maintaining price stability. 

iv. Creates employment - Transportation creates direct employment. It employs drivers, mechanics, helpers, etc., in the process. 

v. Improves standard of living - It improves the standard of living of the people by making a wide variety of goods available to them and by creating employment opportunities for them. 

vi. Helps during emergency - Transportation plays a vital role during a crisis. It helps in delivering basic necessities like food, shelter and medical help to the people during an emergency.

Transport plays a major role in our lives. It facilitates the movement of goods, raw materials and labour from one place to another. 

Some important functions of transport are as follows: 

i. Aids in the production process - Transport helps traders or manufactures to procure raw materials from far-off places and from places where they are available at the cheapest rate. Hence, it helps in procuring raw materials for production. 

ii. Helps in the expansion of markets - Through transportation, sellers or traders can sell their goods in the markets that are far-off. Thus, it aids in the expansion of markets as well. 

iii. Stabilises prices - Transportation helps in making the goods available whenever and wherever they are in demand. Thus, it helps in maintaining price stability. 

iv. Creates employment - Transportation creates direct employment. It employs drivers, mechanics, helpers, etc., in the process. 

v. Improves standard of living - It improves the standard of living of the people by making a wide variety of goods available to them and by creating employment opportunities for them. 

vi. Helps during emergency - Transportation plays a vital role during a crisis. It helps in delivering basic necessities like food, shelter and medical help to the people during an emergency.

Transport plays a major role in our lives. It facilitates the movement of goods, raw materials and labour from one place to another. 

Some important functions of transport are as follows: 

i. Aids in the production process - Transport helps traders or manufactures to procure raw materials from far-off places and from places where they are available at the cheapest rate. Hence, it helps in procuring raw materials for production. 

ii. Helps in the expansion of markets - Through transportation, sellers or traders can sell their goods in the markets that are far-off. Thus, it aids in the expansion of markets as well. 

iii. Stabilises prices - Transportation helps in making the goods available whenever and wherever they are in demand. Thus, it helps in maintaining price stability. 

iv. Creates employment - Transportation creates direct employment. It employs drivers, mechanics, helpers, etc., in the process. 

v. Improves standard of living - It improves the standard of living of the people by making a wide variety of goods available to them and by creating employment opportunities for them. 

vi. Helps during emergency - Transportation plays a vital role during a crisis. It helps in delivering basic necessities like food, shelter and medical help to the people during an emergency.

Correct option is (A) Overdraft

The disadvantages of air transport are as below:

1. Costliest mode : In comparison to all other modes of transport air transport is most expensive.

2. Affected by adverse weather conditions : It is exposed to the vagaries of weather changes, heavy rains, snow, storm, etc.

3. Unsuitability : Air transport is not suitable for short distances. It is also not suitable for carriage of bulky and heavy goods.

4. Huge capital investments : As compared to other modes of transport, air transport requires huge capital investment costs like construction of airports, aircrafts, runways, air traffic control tower, etc. Huge capital investment increases freight and fare charges.

5. International restrictions : Air transport is required to observe international restrictions such as aeroplane of some nations are not permitted to fly over other countries.

6. Limited carrying capacity : In comparison to other means of transport, the carrying capacity of air transport is very limited. It is not suitable to carry heavy and bulky goods.

When human labour is used to transport goods or other humans it is called human operated transport.

Through helicopters.

Reserve Bank of India, which is the central bank of our country.

Life Insurance.

Fire Insurance.

Marine Insurance.

• A person can open a savings account in a bank with an objective of saving a part of income and earning some interest on the money deposited in the savings account. The customer earns interest depending on the amount he maintains in his account. Generally it is compulsory to maintain a minimum balance as decided by the bank in the savings account. Moreover, generally a person can withdraw money only a limited number of times per month. The account holder can withdraw money with the help of cheque, by filling withdrawal slip or using ATM card.
• A savings account can be opened on an individual name or along with someone as a joint account. One can also register the name of the nominee for the account.
• In savings accounts the bank provides its customers the facility of deposit/withdrawal, issuing cheques, ATM cards, etc.
• Bank gets large deposits through several saving accounts it maintains.

Current account:

• An account opened on an individual’s name or the name of the business for conducting day-to-day business financial transactions is known as a current account. This account is only for businessman.
• No Interest is paid on current accounts and in addition a bank may collect bank charges from the account holder to provide several facilities and i maintain the account. There is no limit on the number of transactions one can perform per month.
• One can also avail loans through current account.

Recurring deposit account:

• A recurring deposit account is opened when one wishes to save some money, deposit it regularly in this account and earn an interest at the end of the account term.
• One needs to compulsorily deposit a predetermined amount every month in this account for a pre-determined period. The bank returns the entire amount along with interest to the account holder at the end of the account term.
• The rate of interest is higher than the savings account and lower or almost near to the interest on fixed deposit accounts.

Fixed deposit account:

• An account opened with an aim of earning fix but high interest for a pre-determined period with a fix amount to be deposited all at once while opening the account is called a fixed, deposit account.
• The interest rate on this account is higher than any account. However, one cannot withdraw the money before the fixed deposit term ends. If one wishes to withdraw he may have to pay some penalty and also his rate of interest will decrease.
• The bank normally does not allow to withdraw before the term matures and hence it pays highest interest on this account.
• The bank guarantees the customer to return him his deposit along with the accumlated interest at the end of the term.

Correct option is (B) Instant money order

1. Godowns of ownership perspective,
2. Godowns of payment perspective and
3. Godowns of usefulness perspective.

1. Private godowns and
2. Public godowns.

1. Godowns for those goods whose custom duty is paid and
2. Godowns for those goods whose custom duty is not paid (Bonded godowns).

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

Godown:

A godown is a place for storing large amount of products before sending – them to the market for selling. The service of storing the products is called godown service or warehouse service.

Need of a godown:

• Generally, after production a product is not immediately sold or consumed and hence it needs to be stored.
• On many occasions raw material or partly produced products also need to be stored for further processes.
• Some food items may be produced only during a specific season of the year but would require its storage for selling them throught the year.
• Some goods may be produced and stored in godowns but would be sold when the demand arises.
  Perishable goods like fruits, ice-cream, etc. need proper storage so that they can be distributed and sold as and when needed.
• Thus, godowns do not produce anything but create time utility.

• These godowns are costlier to build and maintain,
• They need to follow several rules and regulations,
• Only specific types of goods can only be stored in them.

Electricity, gravitational force, magnetic force, CNG, diesel, etc.

Correct option is (B) PNG

Certain banks set-up e-corners or e-galleries at selected locations. Using them one can withdraw money through ATM machines, deposit cash, know balance in their accounts, update pass book, etc.

An account holder enjoys the privileges of any number of withdrawals- Current account holders 

Explanation: 

Under current account, the holder can make any number of withdrawals. It is specially meant for the businesspersons who make and receive large number of business payments. However, they do not earn interest on the current account deposits.

Overdraft facility is given to a certain definite account holder. - Current account holder 

Explanation: 

Overdraft facility is provided to current account holders. According to this facility, a current account holder can withdraw amount more than what he/she has in his/her account but interest is charged over the amount overdrawn.

As the name suggests this godown is used for storing almost all types of goods having any shape, weight or form. In this regard any good that does not require any special care, maintenance or treatment can be stored in such godowns.

• Public godowns are used for storing products owned by public.
• As the name suggests these godowns store only those goods which are imported from other countries and on which custom i.e. import duty is already paid.
• This facility helps the goods owner to directly sell the goods with the help of receipt. This saves him from the expenses of loading and transporting goods.
• A businessmen can also divide the large stock of goods into small lots within the godown and sell them to separate traders.
• All these facilities help the businessman to avail several financial facilities and free his invested money.

Godowns for those goods on which custom duty is not paid (Bonded godowns) :

• A godown that can store imported goods on which custom duty is not yet paid is called a bonded godown.
• These godowns are situated near the place of import such as sea ports, airports,.or border areas.
• These godowns prove blessing for importers because:
• The importer may not be able to pay heavy custom duties immediately at the time .of import.
• The importer may want to re-export the goods from the godown itself.
• These godowns provide facility to the owner to divide, mix and repack the goods so that he can prepare a variety of lots for export.

Types of godowns on the basis of ownership:
1. Private godowns:

• A godown owned by a manufacturer or trader exclusively for his own use is called a private godown.
• Such godowns are built as per the space needed by the manufacturer or trader to store his goods.

2. Public godowns:

• A godown built for storing goods owned by public is known as a public godown. Although these are also owned by individuals, institutions or businessmen but they are open for public storage.
• People who want to store their goods can store in these godowns by paying rent and other charges. Normally, these godowns are situated near railway stations, ports and airports.
• Today, public godowns have become an independent activity just like a business. These godowns provide safe storage of goods and proper maintenance.
• These godowns provide receipts to the owners of the products against storage. Moreover, these receipts are transferable. This means if the owner of the goods sells the goods stored in godown to someone, the buyer can claim the ownership of the goods based on the receipt he gets from the existing owner.

Godowns used for storing goods that require special care, treatment and maintenance are called special or specific godowns. For example, goods such as explosive items, crackers, chemicals, cooking gas, petrol, etc. require special godowns. Perishable goods such as fruits, vegetables, milk and milk products, etc. also need to be stored in such godowns.

The owner can show the sample of goods to someone and then sell the buyer the receipt he got from the godown. Based on this receipt the buyer can become the owner of the goods and claim the goods stored in godown.

Correct option is (D) Hyderabad

The following are the mail services & specialised mail services of the postal department: 

i. Mail services - Following are the mail services offered by a post office: 

a. Post card - The message can be written on both the sides of the card; it is the cheapest mode of writtencommunication. 

b. Inland letter card - It is same like post card. The message is written on a piece of paper, which can be folded and sealed. This way, confidentiality can be maintained. 

c. Envelope - It is a paper packet in which confidential papers like resume and account statements can be packed. This is mainly used for transition of documents safely and securely. Confidentiality is also maintained. 

d. Parcel post - This service helps in transferring goods with certain weight and size from one place to another. Goods like clothes and passport can be transferred via parcel post. 

e. Telegram - The message is written by the sender and is communicated in the same form to the receiver. In a telegram service, charges are based on the number of words written in a telegram. 

f. Telephone - Telephone services were started by post office. It is the best mode for quick communication. 

ii. Specialised services - They are similar to mail services, but they offer extra benefits like faster distribution of mails, certainty in the delivery of letters and parcels and compensation in case of loss or damage to mails during transit. 

The following are some specialised mail services offered by post offices: 

a) Under Post Certificate (UPC) - It is the certificate issued to the sender of a letter on payment of a nominal fee. It acts as evidence for the letter posted. 

b) Insured post - Under this special service, the sender can get his/her letter or parcel insured. In other words, the sender can protect himself/herself against any damage while the parcel is in transit. 

c) Poste restante - When the exact address of the receiver is not known to the sender, the letter is sent as poste restante where the postmaster of the local area takes care of the delivery. 

d) Value payable by post (VPP) - This is for the person who makes the payment on the receipt of the article. 

e) Registered post - Registered post ensures that the mail registered is properly delivered to the addressee or returned to the sender in case it is not delivered. 

f) Speed post - It ensures a speedy delivery of letters or parcels (usually within 24 hours) from one place to another.

(1) Business involves various risks like accident, fire, theft, flood, cyclone, etc. It is very difficult for a trader to bear risks of loss. Similarly, human life is subject to various risks such as death by accident, premature death, etc. The specialised agency called insurance company has emerged to provide financial protection against the possible loss due to the happening of such events. Insurance company gives financial protection by charging certain amount as a premium. It. is a risk management, primarily meant to hedge or for compensating against the risk of a contingent or uncertain loss.

(2) Insurance is a contract between two parties whereby one of them (the insurer) agrees in return for a premium to indemnify the other (the insured) against a monetary loss that may be suffered by the other on the happening of some specified event. According to Insurance Act of 1938, “Insurance Is defined as, “A provision which a prudent man makes against inevitable contingencies”.

Whole life insurance:

• A life insurance policy in which the insuree pays a periodic premium for the policy whole life is called whole life insurance. After the insuree dies his heir gets the pre-decided sum mentioned in the insurance agreement as compensation from the insurance company.
• Life is priceless and no amount can ever compensation its loss but to save the heirs or say family members from financial loss and burden one takes life insurance.
• The insurance company decides how much insurance can a person buy based on his income and premium paying capacity and then decides the premium the insuree needs to pay.
• Unlike other insurances, the principle of indemnity cannot be applied in life insurance in the event of death of the insuree.
• When the insurance company gets satisfied that the death of insure took place naturally i.e. he did not commit suicide or something, the insurance company pays the full amount as per the contract to the heir.

Some of the functions of warehouses are: 

i. Consolidation - The foremost function of a warehouse is to pool goods or raw materials from different plants and dispatch them, at the same time, to different customers in one shipment. 

ii. Bulk breaking - Warehouses often receive goods or materials in bulk from production plants. These goods are then divided into smaller quantities and delivered to different customers according to their requirements. 

iii. Stockpiling - Warehouses facilitate the storage of goods and raw materials that are not required for immediate sale or manufacturing. 

iv. Protection of goods - Warehouses store the goods or materials in bulk and thus help in protecting them from any kind of damage such as due to wind, dust or insects. 

v. Price stabilisation - In situations of varying demand and supply of goods, warehouses balance the supply and demand of goods. Thus, they help in stabilising the prices of goods in the economy. 

vi. Offering value-added services - Warehouses offer various valueadded services to producers such as the grading, packaging and labelling of goods. 

vii. Financing - The owner of the goods and raw materials stored in a warehouse can use the warehouse receipt as a security against which he/she can borrow money from banks or other financial institutions.

(1) Warehousing means storing of goods in a godown to hold them in stock from the time of production or purchase till the time of their sale. It is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. One of the marketing processes or a group activity is to hold the goods in stock from the time of production till the time of consumption. When storage of goods is required to be arranged on a large scale In a specified manner, it is called warchousing’. Warehouse means a building in which especially retail goods are stored.

(2) Warehousing is defined as “an establishment for the storage of or accumulation of goocis.’ Warehousing gives protection to goods and helps businessmen to raise finance. It facilitates and provides space for grading. branding and processing. It creates time utility and help in price stabilisation of goods. Thus, warehousing implies a group of activities connected with the storing and preserving of stored goods from the time of their production or purchase till the Urne of their sale or consumption.

Endowment insurance:

• An insurance in which the insurance company promises to pay the policy amount to the insuree at the end of policy period i.e. on maturity of policy or to his legal heir is known as endowment insurance.
• In this type of policy, the insuree decides to insure himself not for whole life but only for a specific number of years. The insuree pays the premium decided by the insurance company upto the decided period for example, upto the age of 50 years.
• Once the insuree reaches the age of 50 years the policy matures and the insuree receives the amount of his policy. In case the insuree dies before the set period of policy, his heir receives the policy amount.

Differences whole life policy and endowment life policy:

Correct Answer is: A. specialty products

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 the 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.
• The money is transferred from account of sender to account of receiver having an account in different bank using internet.
• Since the transaction is neither through cash nor through cheque, both the parties need to use IFSC codes of their banks to transact.
• As per the guidelines of RBI one can use RTGS for transferring minimum 2 lakh rupees. Since this is a ‘real-time’ transaction the amount gets debited in the receiveis account on the same day as soon as the bank receives instruction from the sender.
• The bank charges commission to the sender but not from the receiver.

A life insurance in which the insuree does not takes insurance for the whole life but only for a specific period is called endowment insurance. On maturity if the insuree is alive he gets the money from the insurance company. If he dies his heir gets it.

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 or maximum within 48 hours. 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. Batch-wise settlement is done through DNS (Different Net Settlement)
• Walk-in customers i.e. customers who do not have a bank account can also deposit cash at any NEFT membei bank and use this facility, however, he cannot deposit more than ₹ 50,000 per transaction.
• In general, there is no minimum or maximum limit of money that can be transacted through NEFT.

Correct Answer is: B. less sought services

When a current account holder is allowed to withdraw more money than available in his account i.e. credit balance it is called overdraft.

When a new company enters the capital market and collects funds through shares it is afraid if it will be able to collect at least a minimum subscription to start the business. In such situations it requests the bank to become a guarantor or say under-writer that in case if it cannot raise sufficient money from the market the bank will fulfill the deficit by investing in the company.