Q11. What type of bank account allows customers to earn interest on their deposits?
a) Current Account
b) Savings Account
c) Fixed Deposit Account
d) Recurring Deposit Account
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Correct Answer: b) Savings Account
Explanation: A savings account allows customers to earn interest on the money they deposit. It is designed to help individuals save money while keeping it easily accessible.
Q12. What is the key feature of a Fixed Deposit (FD) account?
a) Unlimited withdrawals
b) Higher interest rates with a fixed tenure
c) Issuance of cheque books
d) Instant money transfer
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Correct Answer: b) Higher interest rates with a fixed tenure
Explanation: A Fixed Deposit account provides higher interest rates than a savings account, but the funds must be kept in the account for a specified period, known as tenure, to earn the interest.
Q13. What banking service is used to transfer money to another bank account within the same country?
a) Internet banking
b) Mobile banking
c) Remittances
d) Loan services
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Correct Answer: c) Remittances
Explanation: Remittances refer to the transfer of money from one bank account to another, often used for sending money to family members, friends, or businesses.
Q14. Which of the following is a type of loan service offered by banks?
a) Savings Account
b) Overdraft Facility
c) Fixed Deposit
d) ATM Withdrawal
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Correct Answer: b) Overdraft Facility
Explanation: An overdraft facility allows customers to withdraw more money than is available in their account, effectively offering them a short-term loan. This service is often linked to current accounts.
Q15. Which type of insurance provides financial coverage in the event of the policyholder’s death?
a) Health Insurance
b) Life Insurance
c) Car Insurance
d) Travel Insurance
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Correct Answer: b) Life Insurance
Explanation: Life insurance provides financial protection to the beneficiaries of the policyholder in the event of the policyholder’s death. The coverage amount is paid as a death benefit to the nominees.
Q16. Which of the following is a key feature of Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) Free car insurance
b) Zero-balance savings account
c) High-interest rates
d) Instant home loans
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Correct Answer: b) Zero-balance savings account
Explanation: Pradhan Mantri Jan Dhan Yojana (PMJDY) offers a zero-balance savings account, enabling underprivileged sections to have access to formal banking services without the requirement to maintain a minimum balance.
Q17. What is the main purpose of password security in banking?
a) To remember bank account details
b) To prevent unauthorized access to accounts
c) To make online shopping easier
d) To earn interest on deposits
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Correct Answer: b) To prevent unauthorized access to accounts
Explanation: Password security is essential to protect bank accounts from unauthorized access. It ensures that only the account holder can access their banking information and perform transactions.
Q18. What should you do if you lose your ATM card?
a) Wait for it to be found
b) Immediately report it to the bank
c) Continue using online banking
d) Ignore it
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Correct Answer: b) Immediately report it to the bank
Explanation: If an ATM card is lost, it should be immediately reported to the bank to prevent unauthorized transactions. The bank will block the card and issue a replacement.
Q19. What is the primary benefit of insurance?
a) Guarantees a return on investment
b) Provides financial protection against risks
c) Offers tax-free income
d) Allows easy access to loans
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Correct Answer: b) Provides financial protection against risks
Explanation: Insurance is designed to provide financial protection against specific risks, such as health issues, accidents, or loss of property. It helps in covering the costs associated with these risks.
Q20. What is the Atal Pension Yojana (APY) designed to do?
a) Provide health insurance to the elderly
b) Offer a pension after retirement
c) Give loans for starting a business
d) Provide free education to children
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Correct Answer: b) Offer a pension after retirement
Explanation: The Atal Pension Yojana (APY) is a government-backed pension scheme aimed at providing a regular pension to individuals after retirement, ensuring financial security in old age.