Test: Business Services - 5 - Commerce MCQ

In Inseparability services are generated and consumed within the same time frame, hence the correct answer is Inseparability.

A Banker's cheque, also known as pay order or bank cheque, is drawn on a bank and provided to a party who may or may not be a customer of that bank. Money is deposited beforehand, only then it can be issued

Answer:
The institution mentioned here is: The Reserve Bank of India
The Reserve Bank of India (RBI) is the central bank of India and it has the main function of controlling and coordinating currency and credit policies of the country.
Functions of the Reserve Bank of India:
- Currency Issuance: The RBI is responsible for issuing and managing the currency in India. It ensures an adequate supply of currency notes and coins in the economy.
- Monetary Policy: The RBI formulates and implements monetary policies to maintain price stability and control inflation. It uses various tools like interest rates, cash reserve ratio, and open market operations to regulate the money supply in the economy.
- Banker to the Government: The RBI acts as a banker and advisor to the central and state governments. It manages the government's accounts, handles government transactions, and provides short-term loans and advances to meet their financial needs.
- Regulator of the Banking System: The RBI regulates and supervises the banking system in India. It issues licenses to banks, sets regulations and guidelines for their functioning, and monitors their performance to ensure financial stability.
- Foreign Exchange Management: The RBI manages the foreign exchange reserves of the country and formulates policies to regulate foreign exchange transactions. It aims to maintain a stable exchange rate and manage external trade and payments.
- Developmental Role: The RBI plays a developmental role by promoting financial inclusion, supporting agricultural and rural credit, and ensuring the smooth functioning of the payment and settlement systems in the country.
Overall, the Reserve Bank of India plays a crucial role in the Indian economy by controlling and coordinating currency and credit policies, maintaining financial stability, and promoting economic growth.

IndusInd Bank comes under which category of banks?
IndusInd Bank comes under the category of Private Sector Banks.
Explanation:
Private sector banks are banks that are owned and managed by private individuals or companies. They are not controlled by the government. IndusInd Bank is one such private sector bank in India.
Here are some key points to support the answer:
- IndusInd Bank is a privately-owned bank and is not controlled by the government.
- It was established in 1994 and has its headquarters in Mumbai, Maharashtra.
- The bank offers a wide range of banking and financial services to individuals, businesses, and corporates.
- IndusInd Bank is known for its innovative and customer-centric approach.
- It provides various banking products such as savings accounts, current accounts, fixed deposits, loans, credit cards, and more.
- The bank has a network of branches and ATMs across the country to cater to the banking needs of its customers.
In conclusion, IndusInd Bank falls under the category of private sector banks.

Feature of services mentioned: Inseparability
Explanation:
- Inseparability is a feature of services that refers to the inability to separate the service from the service provider.
- In the given scenario, the doctor's service cannot be performed without the active participation and agreement of the patient.
- The doctor can only operate if the patient is ready to take his service, indicating the inseparable nature of the service.
- It highlights the importance of the patient's willingness and cooperation in the service delivery process.
- The doctor and the patient are both involved in the service experience, and their interaction is essential for the service to be rendered.
- Unlike tangible goods, services cannot be produced and consumed separately; they are created and consumed simultaneously.
Other features of services:
- Intangibility: Services are intangible and cannot be touched or felt. They lack physical form and are experienced through interactions and performances.
- Inconsistency: Services are variable in nature and can be influenced by factors like human behavior, skills, and other environmental factors. The quality of service may vary from one interaction to another.
- Inventory (less): Services do not require physical inventory management like tangible goods. They are created and consumed on-demand, without the need for stockpiling or storage.

The Reserve Bank of India is known as the Apex Bank of India. Here is a detailed explanation:
Introduction:
- The Apex Bank of India refers to the highest regulatory authority in the banking sector of the country.
- It is responsible for formulating and implementing monetary policies, regulating and supervising banks, and maintaining financial stability in India.
The Reserve Bank of India (RBI):
- The Reserve Bank of India (RBI) is the central banking institution in India.
- It was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
- The RBI is responsible for the issuance and control of the Indian rupee and plays a crucial role in the nation's economic development.
Functions of RBI:
- Monetary Policy: The RBI formulates and implements monetary policies to control inflation, stabilize prices, and promote economic growth.
- Banker to the Government: It acts as a banker and financial advisor to the government, managing its banking transactions, issuing government securities, and providing funds when needed.
- Banker's Bank: The RBI acts as a banker to other banks, maintaining their banking accounts, providing liquidity, and ensuring the stability of the banking system.
- Currency Issuance: The RBI has the sole authority to issue and manage the currency notes and coins in circulation in India.
- Foreign Exchange Management: It manages and regulates the foreign exchange market, ensuring stability in exchange rates and maintaining the country's foreign currency reserves.
- Supervision and Regulation: The RBI supervises and regulates banks and financial institutions to ensure their soundness and compliance with regulations.
- Developmental Role: The RBI plays a developmental role by promoting financial inclusion, supporting rural and agricultural sectors, and fostering a robust and inclusive financial system.
Conclusion:
- The Reserve Bank of India (RBI) holds the status of the Apex Bank of India.
- It is the central banking institution responsible for formulating and implementing monetary policies, regulating banks, and maintaining financial stability in the country.

The form of e-banking services not offered by e-banking is a Cheque.
- ATM: Automated Teller Machine is a form of e-banking service that allows customers to perform various banking transactions such as withdrawing cash, depositing funds, checking account balances, and transferring funds between accounts.
- POS: Point of Sale is a form of e-banking service that enables customers to make payments directly from their bank accounts using a debit card, credit card, or mobile payment methods.
- EFTS: Electronic Funds Transfer System is a form of e-banking service that allows customers to transfer funds electronically between different bank accounts, either within the same bank or between different banks.
Conclusion:
Among the given options, the form of e-banking service NOT offered by e-banking is a Cheque.

India Post has the most widely distributed postal network in the world. The country has been divided into 23 postal circles, each circle headed by a Chief Postmaster General. India has 155,015 post offices across the country.

An Account Payee Cheque is a highly secured type of cheque as the amount can only be deposited in the account of the payee. The payee cannot endorse this cheque to anyone else.
To write an account payee cheque, you must cross two lines on the left corner of the cheque and write “Account Payee” between the two lines.

Overdraft is a type of short-term loan available under current account, where a person can withdraw an amount of money which is higher than the available balance in the account. The excess money withdrawn will become an overdraft which has to be paid with interest.