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Key Facts: CHSE Odisha Banking & Insurance Exam

100 marks

Year-1 Banking & Insurance total (theory + project under standard CHSE patterns)

CHSE Odisha Commerce Courses of Studies / question-pattern practice

Group-I Y1

Fourth elective Year-1 paper; Year-2 companion is Cost Accounting

CHSE Odisha Commerce scheme of studies

4 units

Commercial banking; central/innovative banking; insurance intro; life & other insurances

CHSE Banking & Insurance Paper I syllabus

RBI + IRDAI

Banking regulation/monetary apex vs insurance market regulator themes in the paper

Syllabus Units II–III

In college/AHSE fee

No separate elective marketplace fee; included in session exam fee collection

CHSE Odisha fee practice via colleges

CHSE Odisha Banking & Insurance is the +2 Commerce Group-I Year-1 fourth elective (100 marks; typically theory + project). It covers commercial banks, RBI credit control, insurance principles, and life/general lines. This free 2026 bank is an English MCQ study adaptation—not an official long-answer or project simulation.

Sample CHSE Odisha Banking & Insurance Practice Questions

Try these sample questions to review concepts for the CHSE Odisha Banking & Insurance exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Section 5(b) of the Banking Regulation Act, 1949, banking means accepting deposits from the public for the purpose of:
A.Lending or investment, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise
B.Only printing currency notes for the government
C.Only managing stock-exchange trading accounts of brokers
D.Only collecting taxes on behalf of the Income Tax Department
Explanation: Section 5(b) defines banking as accepting deposits of money from the public for lending or investment, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise.
2Which of the following is a primary function of a commercial bank?
A.Issuing India’s currency notes
B.Acceptance of deposits from the public
C.Setting the nation’s monetary policy stance
D.Acting as lender of last resort to all banks
Explanation: Primary commercial-bank functions centre on accepting deposits and granting loans and advances (and related fund deployment). Note issue, monetary policy, and lender-of-last-resort roles belong to the central bank.
3A fixed deposit with a commercial bank is best classified as a:
A.Demand deposit fully withdrawable by cheque at any moment without notice
B.Reserve the bank must keep only with the RBI as CRR
C.Time deposit repayable after a fixed period, usually with higher interest than a pure demand deposit
D.Share capital contribution of the bank’s equity shareholders
Explanation: Fixed deposits are time deposits for a contracted period; interest is typically higher than on current/demand deposits, and premature withdrawal may involve conditions or interest loss.
4Cash credit and overdraft facilities primarily illustrate which commercial-bank function?
A.Monopoly note issue
B.Custody of the nation’s foreign-exchange reserves
C.Setting the statutory bank rate for the whole system
D.Granting of loans and advances
Explanation: Cash credit and overdraft are standard forms of bank loans and advances to customers, a primary commercial-bank function.
5Discounting of bills of exchange by a commercial bank means the bank:
A.Pays the holder the present value of the bill before maturity and recovers the face value at maturity from the drawee/acceptor
B.Prints new currency equal to the face value of the bill
C.Cancels the bill so that no payment is ever required
D.Converts the bill into equity shares of the bank
Explanation: Bill discounting advances funds against a negotiable instrument before maturity after deducting discount (interest); the bank collects the face amount at maturity.
6Which instrument is classically treated as a negotiable instrument commonly handled in everyday banking operations?
A.A fixed-asset purchase invoice that is never endorsed or transferred
B.A cheque drawn on a bank account
C.A bank’s internal staff attendance sheet
D.A customer’s handwritten shopping list
Explanation: Cheques are classic negotiable instruments under Indian commercial and banking practice; banks collect and pay them as core operations. Ordinary internal papers and shopping lists are not negotiable instruments.
7Collection of cheques and bills on behalf of a customer is classified as which type of commercial-bank service?
A.Monopoly of note issue
B.Open market operation by the central bank
C.Agency service
D.Selective credit control directive by RBI
Explanation: Collecting cheques/bills, making payments, buying/selling securities on instruction, and similar acts are agency services—secondary functions of commercial banks.
8Providing safe-deposit lockers and issuing letters of credit are examples of:
A.Primary deposit-acceptance only, with no service element
B.Central-bank monopoly note-issue functions
C.Compulsory CRR maintenance by customers
D.General utility (public utility) services of commercial banks
Explanation: Letters of credit, drafts, lockers, guarantees, business information, and related facilities are classic general/public utility services of commercial banks.
9On the basis of inclusion in the Second Schedule to the Reserve Bank of India Act, 1934, commercial banks are classified as:
A.Scheduled banks and non-scheduled banks
B.Only life insurers and general insurers
C.Only development banks and NBFCs
D.Only payment banks and mutual funds
Explanation: Scheduled banks are those included in the Second Schedule of the RBI Act, 1934 (subject to statutory conditions); others are non-scheduled. Ownership and origin provide further classifications.
10Public-sector commercial banks differ from private-sector commercial banks primarily in:
A.Whether they may ever accept any public deposits
B.Majority ownership and control pattern (government vs private promoters), subject to banking regulation
C.Whether only public-sector banks can hold currency chests while private banks never can under any rule
D.Whether only private banks may open savings accounts
Explanation: The public/private distinction turns on ownership and control. Both categories of commercial banks accept deposits and are regulated; product eligibility is not “public-only savings.”

About the CHSE Odisha Banking & Insurance Exam

Odisha CHSE Higher Secondary Banking and Insurance is the Year-1 paper of Commerce Group-I fourth elective (paired with Cost Accounting in Year 2). Unit I covers commercial banking: meaning and functions under the Banking Regulation Act framework, types of banks, deposits and loans (including bill discounting and related negotiable instruments in bank operations), bank financial statements, credit creation, portfolio management (liquidity, safety, profitability), nationalisation, and the role of banks in a developing economy. Unit II covers central banking (RBI functions; quantitative credit control via bank rate, open market operations, and CRR; selective/qualitative controls) and innovative banking (merchant banking, consortium finance, credit/debit cards, e-banking channels) plus social responsibilities of banks. Unit III introduces risk, insurance mechanism, double insurance, reinsurance, co-insurance, contingent versus wagering contracts, fundamental principles of insurance, the Insurance Act, 1938, and the role of IRDAI. Unit IV covers life insurance (protection and investment, proposal and premium/mortality basics, policy conditions, claims, plan types by duration and lives covered) and other insurances: fire, marine, fidelity, crop, motor, and credit. Official assessment is mixed written work plus project evidence; this free bank is an English MCQ study aid only.

Exam sponsor: Council of Higher Secondary Education, Odisha (CHSE Odisha). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

CHSE Odisha Commerce fourth-elective Group-I places Banking & Insurance in Year 1 (100 marks) and Cost Accounting in Year 2 (100 marks). Year-1 units cover commercial banking; central banking and innovative banking; introduction to insurance; and life insurance plus selected general lines (fire, marine, fidelity, crop, motor, credit). Theory is typically examined with objective, short, and long answers; project work forms part of the 100-mark year total in standard CHSE Banking & Insurance patterns. This free bank is an English MCQ study adaptation—not a full long-answer or project simulation.

Time Limit

3 hours (theory component; confirm session circular)

Passing Score

~30% minimum in theory (confirm current circular)

Exam / Certification Fees

Included in the CHSE Odisha / college examination fee for the session (collected through the affiliated institution; no separate public per-elective marketplace fee).

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~25% of this local bank

Commercial Banking

Functions, types, deposits/advances, NI in bank ops, statements, credit creation, portfolio, nationalisation, developmental role.

~25% of this local bank

Central & Innovative Banking

RBI functions; bank rate, OMO, CRR; selective controls; merchant banking, cards, e-banking, social responsibility.

~25% of this local bank

Insurance Foundations

Risk/peril/hazard, insurance mechanism, double/re/co-insurance, principles, Insurance Act, IRDAI.

~25% of this local bank

Life & Other Insurances

Life plans, premiums/mortality, claims/conditions; fire, marine, fidelity, crop, motor, credit.

Preparing for the CHSE Odisha Banking & Insurance Exam

What You Need to Know

  • Passing score: ~30% minimum in theory (confirm current circular)
  • Assessment: CHSE Odisha Commerce fourth-elective Group-I places Banking & Insurance in Year 1 (100 marks) and Cost Accounting in Year 2 (100 marks). Year-1 units cover commercial banking; central banking and innovative banking; introduction to insurance; and life insurance plus selected general lines (fire, marine, fidelity, crop, motor, credit). Theory is typically examined with objective, short, and long answers; project work forms part of the 100-mark year total in standard CHSE Banking & Insurance patterns. This free bank is an English MCQ study adaptation—not a full long-answer or project simulation.
  • Time limit: 3 hours (theory component; confirm session circular)
  • Exam / certification fees: Included in the CHSE Odisha / college examination fee for the session (collected through the affiliated institution; no separate public per-elective marketplace fee). Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CHSE Odisha Banking & Insurance: Suggested Study Strategy

1Memorise the quantitative credit-control trio: bank rate, open market operations, and CRR—and contrast them with selective tools (margins, rationing, moral suasion).
2Drill insurance principle one-liners: utmost good faith, insurable interest, indemnity, subrogation, contribution, causa proxima, mitigation of loss.
3Separate double insurance (insured’s multiple policies), reinsurance (insurer-to-insurer), and co-insurance (shared proportions).
4Map life plan types (term, endowment, whole life) against general lines (fire, marine, fidelity, crop, motor, credit).
5Use the Commerce Courses of Studies PDF on chseodisha.nic.in and still practise short/long answers and project work for board readiness.

Frequently Asked Questions

How is CHSE Odisha Higher Secondary Banking and Insurance examined?

Banking & Insurance is the Year-1 paper of Commerce Group-I fourth elective (100 marks for the year), commonly split as theory plus project work under CHSE patterns (often described as 80+20). Papers mix objective, short, and long answers—not a pure MCQ board paper. Year-2 Group-I is Cost Accounting as a separate subject.

What does Year-1 Banking & Insurance cover?

Four units: commercial banking; central banking and innovative banking (including RBI credit-control tools); introduction to insurance (risk, principles, double/re/co-insurance, Insurance Act and IRDAI); and life insurance plus selected general lines (fire, marine, fidelity, crop, motor, credit).

Is this practice bank the same format as the official CHSE paper?

No. Official papers include constructed-response items and project work. This bank is an English-language multiple-choice study adaptation for concept revision—not an official blueprint replica or project substitute.

What is the pass mark?

CHSE Odisha practice commonly requires about 30% as a minimum pass floor in theory components, subject to the year’s notification and any internal/project rules. Confirm the current circular on chseodisha.nic.in.

What does the exam cost?

Examination charges are included in the CHSE Odisha / college fee structure notified for the session and collected through the affiliated institution—no separate public per-elective marketplace fee.

How does Group-I relate to other Commerce electives?

Every Commerce student takes core electives (Accountancy, Business Studies & Management, Business Mathematics & Statistics) plus one fourth-elective group. Group-I is Banking & Insurance (Y1) and Cost Accounting (Y2).