ICSE Class 10

General instructions: Answer all questions. Marks are shown in brackets [ ].

Objective

1. 1.
   Which of the following is true for ATM withdrawals? I. The withdrawal amount is deducted from the customer's bank account immediately. II. ATM transactions can be performed without a PIN. III. Customers can withdraw cash only during banking hours. IV. ATMs provide mini-statements and balance inquiries.

   1. a. I and IV are true
   2. b. II and III are true
   3. c. I and III are true
   4. d. II and IV are true
   [1]
2. 2.
   151. UPI allows fund transfers using only a mobile number or UPI ID.

   1. a. True
   2. b. False
   [1]
3. 3.
   Banking Regulation Act of 1949 was made for :

   1. A. Reserve Bank of India
   2. B. Commercial Banks
   3. C. Government’s Bank
   4. D. Bankers’ Bank
   [1]
4. 4.
   A company takes a loan from a commercial bank for 3 years. Identify which of the following will be true. I. This is short-term finance. II. This is long-term finance. III. It is recorded under capital receipts. IV. It is recorded under revenue receipts.

   1. a. I and III are true
   2. b. II and III are true
   3. c. III and IV are true
   4. d. I and IV are true
   [1]
5. 5.
   If a company records interest payable on a loan, where will it be shown?

   1. A. Liability side of balance sheet
   2. B. Asset side of balance sheet
   3. C. Credit side of profit and loss account
   4. D. Debit side of profit and loss account
   [1]
6. 6.
   What does the principle of 'Lender of the Last Resort' imply about the role of the Central Bank?

   1. A. It provides loans to individuals for personal emergencies.
   2. B. It offers financial assistance to banks during liquidity crises to maintain stability.
   3. C. It regulates interest rates for commercial loans to businesses.
   4. D. It acts as the primary lender for government projects.
   [1]
7. 7.
   A business obtained a loan from a financial institution for expanding its operations but diverted the funds to other activities without informing the creditor. Additionally, it missed several interest payments, causing concern for the creditor. Which key expectation of creditors is primarily being violated?

   1. A. Provision of collateral for all loans.
   2. B. Proper utilization of debt and timely interest payments.
   3. C. Mandatory equity stake in the business.
   4. D. Exclusive lending to businesses in specific industries.
   [1]
8. 8.
   Which of the following statements is true regarding cyber fraud prevention? I. Never share OTPs, CVVs, or passwords with anyone. II. Only physical transactions are at risk of fraud, not online payments. III. Always verify emails and links before entering personal details. IV. Using strong passwords and two-factor authentication enhances security.

   1. a. I and II are true
   2. b. III and IV are true
   3. c. I and IV are true
   4. d. II and III are true
   [1]
9. 9.
   What is the role of the Central Bank as the custodian of foreign currency reserves, and how does it contribute to the stability of a country's economy?

   1. a. To issue foreign currency directly to the general public
   2. b. To store foreign currency reserves and stabilize exchange rates
   3. c. To facilitate loans for international organizations
   4. d. To convert all foreign reserves into gold
   [1]
10. 10.
    Which of the following describes the role of the Central Bank as a clearinghouse, and how does it facilitate interbank transactions?

    1. a. It provides loans to customers of multiple banks.
    2. b. It enables the settlement of mutual claims among banks.
    3. c. It monitors ATM withdrawals across banks.
    4. d. It distributes currency directly to customers.
    [1]