Chapter Exam

Chapter 4: Business Services — Online MCQ Test

Q: Which of the following is a function of a commercial bank?

Answer: B. Accepting deposits and granting loans — Commercial banks mainly accept deposits from the public and provide loans and advances to customers.

Q: A customer deposits money in a bank for safekeeping and earns interest. This is an example of which bank function?

Answer: B. Accepting deposits — Accepting deposits is a primary function of commercial banks and depositors may earn interest on their money.

Q: A trader wants to keep goods safely until demand rises in the market. Which business service best meets this need?

Answer: B. Warehousing — Warehousing helps traders store goods safely and release them when required for sale.

Q: A company imports raw materials from another country. Which combination of business services is most directly involved in making this possible?

Answer: A. Transport, insurance, and banking — International trade commonly depends on transport for movement, insurance for risk coverage, and banking for payment and finance.

BUSINESS STUDIES · CLASS 11 FIRST PUC · Karnataka State Board

Practice Chapter 4: Business Services with a free chapter-wise online MCQ test for Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES. This chapter covers: This chapter covers commercial business services banking types and services insurance principles and types warehousing communication and transport services.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 4: Business Services — Important Questions & Answers (FAQ)

Frequently asked questions from Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES — Chapter 4: Business Services, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is meant by business services?

A. Activities that satisfy personal wants only
B. Services that help in the smooth conduct of business activities ✓
C. Only transport services used by passengers
D. Services provided only by government departments

Answer: B. Services that help in the smooth conduct of business activities
Business services are those services that support business operations, such as banking, insurance, warehousing, and transport.

Which of the following is a function of a commercial bank?

A. Manufacturing goods
B. Accepting deposits and granting loans ✓
C. Setting school curriculum
D. Producing agricultural crops

Answer: B. Accepting deposits and granting loans
Commercial banks mainly accept deposits from the public and provide loans and advances to customers.

A customer deposits money in a bank for safekeeping and earns interest. This is an example of which bank function?

A. Advancing loans
B. Accepting deposits ✓
C. Discounting bills
D. Agency function

Answer: B. Accepting deposits
Accepting deposits is a primary function of commercial banks and depositors may earn interest on their money.

A trader wants to keep goods safely until demand rises in the market. Which business service best meets this need?

A. Transport
B. Warehousing ✓
C. Insurance
D. Advertising

Answer: B. Warehousing
Warehousing helps traders store goods safely and release them when required for sale.

A company imports raw materials from another country. Which combination of business services is most directly involved in making this possible?

A. Transport, insurance, and banking ✓
B. Warehousing, tailoring, and farming
C. Advertising, mining, and carpentry
D. Education, health care, and tourism

Answer: A. Transport, insurance, and banking
International trade commonly depends on transport for movement, insurance for risk coverage, and banking for payment and finance.

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