Finance Question Paper 2025 [AHSEC Class 11 Finance Question Papers]

Finance Question Paper 2025
AHSEC Class 11 Finance Question Paper

Full Marks: 80

Pass Marks: 24

Time: 3 hours

The figures in the margin indicate full marks for the questions.

[AHSEC Class 11 Question Papers, Banking Question Papers, Finance Question Papers 2025]

Give the answers of Part-A in the OMR Answer-Sheet provided.

Scheme of Allotment of Marks

Section	Question Numbers	Nature of Questions	Marks per Question	Total Marks
Part-A	1 – 40	Objective / Compulsory	1	40
Part-B	41	Short Answer (5 out of 8)	2	10
	42	Short Answer (5 out of 8)	3	15
	43	Long Answer (3 out of 7)	5	15
Total				80

Choose and write the correct option of the following: 1*40 = 40

PART-A (Marks: 40)

Choose the correct answer from the following:

1. Debenture holders are ________ of the company.

(a) debtor

(b) creditor

(c) owner

(d) None of the above

2. Real owner of a company is:

(a) preference shareholder

(b) equity shareholder

(c) debenture holder

(d) All of the above

3. Overdraft facility is granted only for

(a) Current Account

(b) Savings Account

(c) Fixed Account

(d) All of the above

4. The First Stock Exchange was established in 1875 in

(a) Bombay

(b) Madras

(c) Calcutta

(d) Delhi

5. NABARD was established in the year

(a) 1980

(b) 1981

(c) 1982

(d) 1983

6. Money market provides loan as

(a) short-term

(b) medium-term

(c) long-term

(d) All of the above

7. The money market instrument

(a) commercial paper

(b) equity share

(c) preference share

(d) bond

8. The General Insurance Corporation was set up in the year

(a) 1972

(b) 1973

(c) 1974

(d) 1975

9. The Banking Regulation Act was passed in the year

(a) 1948

(b) 1949

(c) 1950

(d) None of the above

10. One-rupee note is issued by the

(a) Reserve Bank of India

(b) Commercial Bank

(c) Ministry of Finance, Government of India

(d) Industrial Bank of India

11. Which bank is called as the 'lender of last resort'?

(a) Commercial Bank

(b) Agricultural Bank

(c) Savings Bank

(d) Central Bank

12. The Reserve Bank of India was set up in the year

(a) 1934

(b) 1935

(c) 1936

(d) 1937

13. Open market operation system is an instrument of

(a) credit creation

(b) credit control

(c) deposit system

(d) None of the above

14. Which system is followed by the RBI for issuing currency?

(a) Minimum reserve system

(b) Proportional reserve system

(c) Maximum reserve system

(d) Simple deposit system

15. Credit creation is done by the

(a) Central Bank

(b) Investment Bank

(c) Savings Bank

(d) Commercial Bank

16. Primary Agricultural Credit Society (PACS) operates at

(a) village level

(b) district level

(c) State level

(d) All of the above

17. The name of the first Presidency Bank was

(a) Bank of Bengal

(b) Bank of Bombay

(c) Bank of Madras

(d) Bank of Hindustan

18. 14 commercial banks were nationalized in the year

(a) 1967

(b) 1969

(c) 1980

(d) 1982

19. The previous name of the State Bank of India was

(a) State Bank of Jaipur

(b) State Bank of Patiala

(c) Imperial Bank of India

(d) State Bank of Indore

20. The headquarters of the State Bank of India is located in

(a) Mumbai

(b) New Delhi

(c) Chennai

(d) Kolkata

21. Lead Bank Scheme was introduced in

(a) 1969

(b) 1970

(c) 1971

(d) 1972

22. Unit banking system is originated in

(a) India

(b) Pakistan

(c) Sri Lanka

(d) USA

23. Paid-up capital of a scheduled commercial bank should not be less than:

(a) Rs. 1 Lakh

(b) Rs. 3 Lakhs

(c) Rs. 5 Lakhs

(d) Rs. 6 Lakh

24. Which one is not included in regional rural bank?

(a) Assam gramin Vikash bank

(b) Lakhimi Gaonlia bank

(c) Cachar Gramin Bank

(d) Bandhan Bank

25. The highest rate of interest payable by the bank on:

(a) Saving bank account

(b) Current bank account

(c) Fixed Bank account

(d) None of the above

26. A Minor is a person who has not attained the age of:

(a) 18 Years

(b) 14 Years

(c) 21 Years

(d) None of the above

27. Which account may not be opened in the name of a minor by the bank?

(a) Saving account

(b) Fixed Account

(c) Recurring Account

(d) Current Account

28. Short term source of finance are:

(a) Equity share capital

(b) Preference share capital

(c) Debentures

(d) Bills discounting

29. Cheque book is issued by the:

(a) Bank Customer

(b) Banker

(c) Third party

(d) All of the above

30. Demand deposit is included under:

(a) Saving deposit account

(b) Fixed deposit account

(c) Recurring deposit account

(d) All of the above

31. Bank’s customer means:

(a) Who withdraw money from the bank

(b) Who takes loan from the bank

(c) Who has an account with the bank

(d) All of the above

32. The Negotiable Instruments Act was passed in the year:

(a) 1881

(b) 1882

(c) 1883

(d) 1949

33. Which one is not included in Negotiable instruments?

(a) Share warrant

(b) Hundi

(c) Cheque

(d) HSLC Certificate

34. Hundi is written in:

(a) English language

(b) Hindi Language

(c) Tamil language

(d) Regional language

35. Indigenous banker deals in:

(a) Money

(b) Promissory note

(c) Cheque

(d) Hundi

36. A separate piece of paper attached to a negotiable instrument for the purpose of making endorsement is:

(a) Allonge

(b) Bills of exchange

(c) Promissory note

(d) Holder

37. When the banker receives garnishee order, then what should he do?

(a) Release the fund

(b) Give interest to the account

(c) Freeze the account

(d) None of the above

38. A special crossing is a crossing when a cheque bears across its face the name of:

(a) Payee

(b) Maker

(c) Banker

(d) Holder

39. Bills of exchange has ___ parties.

(a) 3

(b) 4

(c) 5

(d) 6

40. For valid document, acceptance is required in:

(a) Promissory note

(b) Bills of exchange

(c) Cheque

(d) Share

Part B: 40 Marks

41. Answer any five questions:  2*5=10

a) What is finance?

b) What is financial system?

c) Define bank.

d) What is bank rate?

e) Name any two public sector banks in India.

f) What do you mean by scheduled bank?

g) What is branch banking system?

h) What is bank pay-in-slip?

i) Name the parties of a promissory note.

42. Answer any five questions: 3*5=15

a) State any three features of finance.

b) State the functions of financial system.

c) What is consumer credit?

d) Mention the limitations on the power of banks to create credit.

e) Write a brief note about imperial bank of India.

f) Discuss the advantages of unit banking.

g) Write any three difference between current account and saving deposit account.

h) What is banking ombudsman scheme?

i) What are the different types of bills?

43. Answer any three questions: 5*3=15

a) What are the various source of short-term finance? Explain.

b) Discuss the various agency services rendered by commercial bank.

c) Discuss the growth and development of bank in India.

Or

Discuss the different methods of note issue of central bank.

d) Discuss the procedure of opening a bank account in the name of partnership firm.

e) Distinguish between bills of exchange and cheque.

f) What is endorsement? Explain the rules regarding endorsement.

g) Explain the privileges of holder in due course.