[AHSEC Class 11 Finance Sample Questions Paper 2025, HS 1st Year Finance Sample Questions Paper]
2025
Finance
Time: 3 hours
Full Marks: 80
(MCQs: 40 + Theory: 40)
Figure in the margin indicate full mark for the questions
Important Note: From the 2025 examination onwards, the AHSEC has introduced a new exam pattern for Class 11 Finance. For the 40 marks allocated to MCQs, students must use the provided OMR sheet to mark their answers. Ensure to shade the correct option (a/b/c/d) clearly for each question as per the instructions.
Part A: MCQs (40 Marks)
1. The Banking Regulation Act was passed in the year:
(a) 1945
(b) 1949
(c) 1951
(d) 1956
2. RRBs were started in the year:
(a) 1967
(b) 1975
(c) 1976
(d) 1980
3. Who is authorized to issue paper currency in India?
(a) SBI
(b) RBI
(c) Finance Ministry
(d) NABARD
4. Write the full form of NABARD:
(a) National Bank for Agricultural and Rural Development
(b) National Association for Banking and Rural Development
(c) National Agriculture Bank for Rural Development
(d) National Authority for Banking Research Development
5. EXIM Bank was established in the year:
(a) 1980
(b) 1982
(c) 1984
(d) 1985
6. A savings bank account primarily aims at:
(a) High-interest savings
(b) Regular savings
(c) Loans
(d) Business transactions
7. A public sector bank is:
(a) HDFC Bank
(b) ICICI Bank
(c) SBI
(d) Kotak Mahindra Bank
8. The primary function of a commercial bank is:
(a) Issuing currency
(b) Lending money
(c) Printing cheques
(d) Controlling inflation
9. The central bank of India is:
(a) RBI
(b) SBI
(c) NABARD
(d) ICICI
10. Regional Rural Banks were established to support:
(a) Urban trade
(b) Industrial development
(c) Rural development
(d) Export and Import
11. The principle of note issuance followed by RBI is:
(a) Fixed Reserve System
(b) Minimum Reserve System
(c) Proportional Reserve System
(d) Gold Standard
12. Internet banking excludes:
(a) Fund transfers
(b) ATM withdrawals
(c) Online account management
(d) Bill payments
13. What is a negotiable instrument?
(a) Fixed deposit
(b) Savings passbook
(c) Cheque
(d) Recurring deposit
14. A recurring deposit is suitable for:
(a) Regular savings
(b) Lump sum investments
(c) High-risk ventures
(d) Fixed assets
15. What is the full form of EXIM Bank?
(a) Export and Import Bank
(b) External Import Bank
(c) Exclusive Import Bank
(d) Exchange Import Bank
16. NABARD focuses on:
(a) Urban banking
(b) Rural development
(c) Industrial loans
(d) Real estate
17. A cheque is considered:
(a) A liability
(b) A negotiable instrument
(c) A fixed asset
(d) An investment
18. A commercial bank does not perform:
(a) Credit creation
(b) Providing overdrafts
(c) Issuing currency notes
(d) Accepting deposits
19. The Central Bank in India is:
(a) SBI
(b) RBI
(c) NABARD
(d) PNB
20. Land Development Banks provide:
(a) Trade credit
(b) Agricultural finance
(c) Consumer loans
(d) Industrial financing
21. A negotiable instrument must:
(a) Be in writing
(b) Include a conditional promise
(c) Be non-transferable
(d) Have no expiry
22. Trade credit refers to:
(a) Cash payment for goods
(b) Deferred payment for goods
(c) Loans from banks
(d) Shares trading
23. A cheque is dishonored when:
(a) The bank account has sufficient funds
(b) The bank refuses to pay
(c) The cheque is encashed
(d) It is deposited in a savings account
24. Inflation leads to:
(a) Decrease in prices
(b) Decrease in purchasing power
(c) Increase in savings
(d) Increase in value of money
25. A fixed deposit offers:
(a) Low returns
(b) High liquidity
(c) Higher interest rates for a fixed term
(d) Negotiable withdrawal
26. The main objective of NABARD is to:
(a) Assist urban development
(b) Support rural infrastructure
(c) Manage national exports
(d) Promote global trade
27. A Development Bank provides:
(a) Short-term loans
(b) Long-term capital
(c) Consumer finance
(d) Daily banking services
28. Crossing of a cheque ensures:
(a) It cannot be cashed at the counter
(b) It can be cashed at any branch
(c) It is returned to the drawer
(d) It is invalid
29. The minimum reserve requirement of RBI is:
(a) 100 crore in gold
(b) 200 crore in bonds
(c) 200 crore in gold and foreign securities
(d) 150 crore in cash
30. A promissory note is:
(a) An agreement to pay a fixed sum
(b) A negotiable instrument with conditions
(c) A bank statement
(d) A fixed deposit
31. The Lead Bank Scheme focuses on:
(a) Rural development
(b) National trade
(c) Urban infrastructure
(d) Export growth
32. Retail banking provides services to:
(a) Large industries
(b) Individual customers
(c) Exporters
(d) Governments
33. E-banking allows:
(a) Online fund transfers
(b) Printing cheques
(c) Cash deposit without banks
(d) Physical presence
34. What is an overdraft facility?
(a) Fixed deposit loan
(b) Withdrawal beyond account balance
(c) Loan against property
(d) Pre-approved savings
35. Scheduled banks are:
(a) Not included in the RBI Act
(b) Listed under RBI Act, 1934
(c) Private banks only
(d) Exempt from regulations
36. Current deposits are primarily for:
(a) Business transactions
(b) Long-term savings
(c) High-interest returns
(d) Fixed deposits
37. Which of the following is a direct source of finance?
(a) Bank loan
(b) Issuing shares
(c) Trade credit
(d) Overdraft
38. Internet banking does not involve:
(a) Fund transfers
(b) Checking account statements
(c) Physical bank visits
(d) Personal loans
39. Venture capital is for:
(a) Established companies
(b) Startups and small businesses
(c) Government projects
(d) Non-profit organizations
40. The difference between a savings account and a fixed deposit is:
(a) Duration of deposit
(b) Purpose of use
(c) Interest rate and withdrawal terms
(d) All of the above
Part B: Theory (40 Marks)
Section A: Short Answer Questions (2 Marks each)
7. Define the term “Savings Bank”.
8. State two functions of a Regional Rural Bank.
9. Differentiate between Scheduled and Non-Scheduled Banks.
10. What is meant by the Trade Cycle?
11. Write two causes of inflation.
Section B: Medium Answer Questions (5 Marks each)
12. Discuss the primary functions of the Reserve Bank of India.
13. Explain the advantages of Internet Banking.
14. Describe the procedure to open a bank account for a minor.
15. Write a note on the Lead Bank Scheme.
Section C: Long Answer Questions (8 Marks each)
16. What are the different types of bank accounts? Explain any three of them in detail.
OR
Discuss the procedure of opening a bank account for a married woman.
17. Explain the role of the financial system in economic development.
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Disclaimer: The above question paper is a sample prepared based on the new exam pattern provided by ASSEB Assam Board Division 1. It is intended for reference and practice purposes only and is not an official paper.