10 Questions
Which type of insurance is most relevant to protection against damage or loss of goods during transportation?
Marine insurance
What is the term for the process of transmission of ideas, opinions, thoughts, and information between two or more persons?
Communication
What is the primary function of commercial banks?
Accepting deposits
Which principle of insurance states that the insurance company is entitled to recover the amount of loss from the party responsible for the damage?
Subrogation
Which of the following is a type of bank account designed to cultivate saving habits?
Savings Deposit Account
What is the term for communication that does not involve the use of words?
Non-verbal communication
What is the minimum transaction value for RTGS fund transfer system?
Rs. 50,000
Which of the following is NOT a principle of insurance?
Transportation
What is the primary objective of a savings account?
To cultivate saving habits
Which of the following is a type of postal service?
Parcels and couriers
Study Notes
Business Support Services
- Business support services are activities that facilitate the smooth flow of goods from producers to consumers and aid in the functioning of businesses.
Banking
- Banking involves the provision of services by banks, including:
- Accepting deposits
- Granting loans and advances
- Agency services
- General utility services
- Types of bank accounts:
- Fixed Deposit Account: a lump sum deposit for a specified time
- Recurring Deposit Account: a specified sum deposited every month
- Savings Deposit Account: for cultivating a saving habit
- Current Deposit Account: for business persons to deposit or withdraw money as needed
- Bank draft: a cheque drawn by a bank branch on another branch outside the city
- Pay order: a cheque drawn by a bank branch and payable at the same branch
- RTGS (Real-Time Gross Settlement): a fund transfer system with no waiting period for settlement, minimum transaction value is Rs. 50,000
- NEFT (National Electronic Fund Transfer): a fund transfer system where transactions are settled in batches
- Cash credit facility: allows persons without a current account to have credit arrangements
- SMS alert: an e-banking facility that informs customers of every deposit/withdrawal from their account
Postal Services
- Parcels and couriers are types of postal services
- Saving services provided by post offices include:
- NSC (National Savings Certificate)
- PPF (Public Provident Fund)
- MIS (Monthly Income Scheme)
Insurance
- Insurance: a contract between the insurer and insured, where the insurer pays a fixed amount to compensate the insured against risks of loss or damage
- Types of insurance:
- Life insurance
- Fire insurance
- Marine insurance
- Other types of insurance
- Principles of insurance:
- Utmost good faith
- Insurable interest
- Indemnity
- Contribution
- Subrogation
- Mitigation
- Cause proxima
Transportation and Communication
- Transportation: the process of carrying goods and passengers from one place to another
- Modes of transportation:
- Roadways
- Railways
- Airways
- Waterways
- Communication: the process of transmission of ideas, opinions, thoughts, and information between two or more persons
- Types of communication:
- Oral
- Written
- Non-verbal (visual, aural, or gestural)
- Services that aid business communication:
- Postal services
- Telecommunication services
This quiz covers the concepts of business support services and banking functions, including the primary and secondary functions of commercial banks. It includes topics such as accepting deposits, lending money, agency services, and general utilities services.
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