Test: Business Services - 3 - Commerce MCQ

A Cheque is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s or company’s account in whose name the cheque has been made or issued. The cheque is utilised to make safe, secure and convenient payments. A cheque is a tangible document and does not comes under the purview of electronic transaction.

Sea should be the correct answer as Sea is one of the cheapest sources of International transportation. The question does not mention anything about the urgency of delivery so fast transportation is out of the picture.
Using cheap source of transportation helps in increasing the profits of the business. After all the main aim is to earn more profit.

Life insurance is a contract of assurance because:
1. The sum assured will be certainly paid: When a person purchases a life insurance policy, they choose a sum assured, which is the amount of money that will be paid to the beneficiary upon the insured's death. The insurance company is legally bound to pay this sum assured to the beneficiary, ensuring financial security for the insured's loved ones.
2. The policy will certainly mature: Life insurance policies can have a maturity date, at which point the policyholder will receive a lump sum payment. This maturity benefit is guaranteed by the insurance company, providing a financial safety net for the policyholder during their lifetime.
3. Death will certainly occur: While it may seem morbid, the certainty of death is a fundamental aspect of life insurance. The purpose of life insurance is to provide financial protection to the insured's family or dependents in the event of their death. Since death is an inevitable part of life, life insurance ensures that the insured's loved ones are financially supported after their passing.
4. The loss will definitely occur: Life insurance is designed to mitigate the financial loss that occurs when the insured individual dies. The loss of income, the expenses associated with funeral arrangements, and other financial burdens can be significant for the insured's family. Life insurance provides a means to cover these financial losses and maintain financial stability.
In conclusion, life insurance is a contract of assurance because it guarantees the payment of the sum assured, provides a maturity benefit, acknowledges the certainty of death, and offers financial protection against the loss that occurs when the insured individual dies.

Subject Matter of Marine Insurance:
- Marine insurance covers various risks associated with the transportation of goods and vessels over water. The subject matter of marine insurance includes:
1. Hull Insurance:
- Hull insurance provides coverage for the physical damage or loss of the vessel itself, including the hull, machinery, equipment, and fittings.
2. Cargo Insurance:
- Cargo insurance protects the goods being transported by sea against loss or damage during transit. It covers a wide range of goods, including raw materials, finished goods, and other merchandise.
3. Freight Insurance:
- Freight insurance covers the loss of freight revenue in the event that a covered peril results in the non-delivery or delay of the cargo. It compensates the shipper or carrier for the financial loss incurred.
4. Liability Insurance:
- Marine liability insurance provides coverage for any legal liabilities arising out of the operation of a vessel, including third-party injuries, damage to other vessels or property, pollution, and wreck removal.
5. War Risk Insurance:
- War risk insurance covers the risks associated with war, terrorism, and related perils. It provides coverage for damages or losses caused by acts of war, civil war, rebellion, piracy, and similar events.
6. Protection and Indemnity (P&I) Insurance:
- P&I insurance provides coverage for liabilities not covered by traditional marine liability insurance. It includes coverage for crew injury, pollution, collision, salvage, and other non-conventional risks.
7. Loss of Hire Insurance:
- Loss of hire insurance compensates the shipowner for the loss of earnings resulting from the vessel's inability to operate due to damage or loss covered under the hull insurance.
8. Additional Coverages:
- Marine insurance may also include additional coverages such as sue and labor expenses, general average, salvage, and towage.
Therefore, the subject matter of marine insurance includes hull, cargo, freight, liability, war risk, P&I, loss of hire, and various additional coverages.

Overdraft Facility is available on:

• Current deposit account: Overdraft facility is commonly available on current deposit accounts. This type of account is typically used by businesses and allows for frequent transactions and unlimited withdrawals. Overdraft facility on a current deposit account allows the account holder to withdraw more money than what is currently in the account, up to a predetermined limit.



• Recurring Deposits: Recurring deposits are a type of fixed deposit where a fixed amount is deposited at regular intervals. However, overdraft facility is generally not available on recurring deposits.



• Saving Deposit Account: Saving deposit accounts are meant for individuals and offer a higher interest rate compared to current deposit accounts. While some banks may offer overdraft facility on saving deposit accounts, it is less common and usually subject to certain conditions and eligibility criteria.



• Fixed deposits: Fixed deposits are a type of savings account where a fixed amount is deposited for a fixed period of time. Overdraft facility is generally not available on fixed deposits as the funds are locked for a specific duration.

Therefore, the correct answer is option A: Current deposit account.

The RTGS full form in banking is Real Time Gross Settlement. As the name indicates, this is a system of funds transfer wherein the money from one bank account is transferred to another on a real-time basis. Essentially, this means that there is no waiting period on any of the transactions, and the funds transfer occurs instantly. Gross settlement in RTGS indicates that each transaction is processed and settled on a one-to-one basis instead of being grouped with other transactions and being settled in batches. The RTGS facility is typically suitable for making large-value funds transfers of ₹2 Lakhs or more.

The Largest Commercial Bank of India - State Bank of India (SBI)
Introduction:
State Bank of India (SBI) is the largest commercial bank in India in terms of assets, deposits, branches, customers, and employees. It is a public sector bank and is headquartered in Mumbai, Maharashtra.
Key Points:
1. SBI's size and reach: SBI has a vast network of branches and ATMs across India and even has a presence in several countries globally. It serves millions of customers and has a significant market share in the banking sector.
2. Assets and deposits: SBI has the highest asset base among all commercial banks in India. Its total assets include loans, investments, and other financial instruments. The bank also holds the highest amount of deposits from customers.
3. Services and products: SBI offers a wide range of banking services and products to individuals, businesses, and corporates. These include savings and current accounts, loans, credit cards, insurance, investment options, and more.
4. Government ownership: SBI is a government-owned bank, with the Government of India holding a majority stake in the bank. This ownership ensures stability and trust in the bank's operations.
5. Contributions to the economy: SBI plays a crucial role in the Indian economy by providing financial services to various sectors. It supports economic growth, facilitates trade and commerce, and promotes financial inclusion.
6. Technological advancements: SBI has embraced digital transformation and introduced various online and mobile banking services. It has made banking convenient for customers through internet banking, mobile apps, and digital wallets.
7. Merger with associate banks: In 2017, SBI merged with its five associate banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore) and also Bharatiya Mahila Bank, further strengthening its position in the banking sector.
Conclusion:
State Bank of India (SBI) stands as the largest commercial bank in India, offering a wide range of banking services, contributing significantly to the economy, and serving millions of customers across the country and abroad.

Life Insurance Contracts
In life insurance contracts, there are certain characteristics and features that are applicable. However, one of the options listed is not applicable in life insurance contracts. Let's examine each option to determine which one is not applicable:
A: Indemnity contract
- An indemnity contract is a type of insurance contract where the insurer agrees to compensate the insured for the actual amount of loss or damage incurred.
- In life insurance, the concept of indemnity does not apply as it is not possible to compensate for the loss of life. Life insurance provides financial protection to the beneficiaries or policyholders in the event of the insured's death.
B: Unilateral contracts
- Unilateral contracts are agreements where only one party makes a promise or undertakes an obligation.
- Life insurance contracts are typically considered unilateral contracts because the insurer promises to pay the death benefit to the beneficiaries upon the death of the insured, but the insured does not have any ongoing obligations.
C: Conditional contracts
- Conditional contracts are agreements that are subject to certain conditions or requirements being met.
- Life insurance contracts may have certain conditions, such as the policyholder paying premiums on time, providing accurate information, and maintaining the policy in force. The payment of the death benefit is contingent upon these conditions being met.
D: None of the options
- This option suggests that all the options listed (A, B, and C) are applicable in life insurance contracts. However, this is not the correct answer as option A, the indemnity contract, is not applicable in life insurance contracts.
Therefore, the correct answer is A: Indemnity contract. It is not applicable in life insurance contracts.

Answer:
DTH services (Direct-to-Home services) are provided by cellular companies. Here is a detailed explanation:
Explanation:
DTH services refer to the satellite television broadcasting directly to the subscribers' premises. These services are provided by cellular companies, which specialize in offering these services to customers. Here are the reasons why cellular companies provide DTH services:
1. Infrastructure and Technology:
- Cellular companies have the necessary infrastructure and technology to deliver DTH services efficiently.
- They have a network of satellites, transmitters, and receivers to broadcast and receive the TV signals.
2. Wide Coverage:
- Cellular companies have a wide coverage area, ensuring that DTH services reach a larger audience.
- They have a strong network that can transmit signals to remote areas where cable TV might not be available.
3. Integration with Mobile Services:
- Cellular companies can integrate DTH services with their existing mobile services, allowing customers to access TV content on their mobile devices.
- This integration provides customers with the flexibility to watch TV anytime, anywhere.
4. Bundled Packages:
- Cellular companies can offer bundled packages that include both mobile and DTH services, providing customers with a convenient and cost-effective solution.
5. Customer Support:
- Cellular companies have well-established customer support systems to assist customers with any issues or queries related to DTH services.
In conclusion, cellular companies are the primary providers of DTH services due to their infrastructure, technology, wide coverage, integration with mobile services, bundled packages, and customer support.

IndusInd Bank Ltd is one of the new generation private sector banks in India. The Bank's business lines include corporate banking, retail banking, treasury and foreign exchange, investment banking, capital markets, non-resident Indian/high-net-worth individual banking, and information technology.