Q21. What is the eligibility criterion for Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
a) Age between 18 to 70 years
b) Owning a business
c) Having a fixed deposit account
d) Holding a credit card
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Correct Answer: a) Age between 18 to 70 years
Explanation: The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme available to individuals aged between 18 and 70 years.
Q22. What type of coverage does Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provide?
a) Life insurance coverage
b) Health insurance coverage
c) Car insurance coverage
d) Home insurance coverage
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Correct Answer: a) Life insurance coverage
Explanation: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provides life insurance coverage to individuals, offering financial support to their families in case of the policyholder’s death.
Q23. What is the main objective of the Pradhan Mantri Mudra Yojana (PMMY)?
a) To provide loans for small businesses
b) To offer scholarships to students
c) To build affordable housing
d) To provide free healthcare
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Correct Answer: a) To provide loans for small businesses
Explanation: The Pradhan Mantri Mudra Yojana (PMMY) aims to provide financial support to small and micro-businesses through loans, helping them grow and expand their operations.
Q24. What is an overdraft facility?
a) A loan to purchase a house
b) A facility to withdraw more money than available in the account
c) A type of fixed deposit account
d) A savings account with no interest
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Correct Answer: b) A facility to withdraw more money than available in the account
Explanation: An overdraft facility allows account holders to withdraw funds beyond their account balance, essentially providing a short-term loan. It is usually linked to current accounts.
Q25. What is the purpose of mobile banking?
a) To physically visit the bank for transactions
b) To perform banking activities using a mobile device
c) To receive cash at home
d) To store physical money in the phone
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Correct Answer: b) To perform banking activities using a mobile device
Explanation: Mobile banking allows users to perform banking transactions, such as money transfers, balance inquiries, and bill payments, using a smartphone or tablet, providing convenience and accessibility.
Q26. Which of the following is NOT a type of bank account?
a) Savings Account
b) Fixed Deposit Account
c) Insurance Account
d) Current Account
Show Answer
Correct Answer: c) Insurance Account
Explanation: Savings, Fixed Deposit, and Current Accounts are types of bank accounts used for different purposes. An Insurance Account is not a type of bank account but rather relates to insurance policies.
Q27. What is the main advantage of using a Demand Draft (DD) over a cheque?
a) DDs are always guaranteed payment
b) DDs can be issued without a bank account
c) DDs do not have any fees
d) DDs can be cashed anywhere in the world
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Correct Answer: a) DDs are always guaranteed payment
Explanation: Demand Drafts are prepaid instruments, meaning the bank guarantees payment, making them a more secure option than cheques, which can bounce if there are insufficient funds.
Q28. What are the basic services included under Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) ATM card, overdraft facility, and insurance
b) Credit card, fixed deposit, and mortgage
c) Foreign exchange, remittance, and mutual funds
d) Stock trading, loan, and mobile banking
Show Answer
Correct Answer: a) ATM card, overdraft facility, and insurance
Explanation: PMJDY provides basic banking services such as an ATM card, an overdraft facility, and insurance, ensuring financial inclusion for all, especially the underprivileged.
Q29. How does Know Your Customer (KYC) help prevent fraud?
a) By providing discounts on banking services
b) By verifying the identity of customers
c) By offering low-interest rates
d) By limiting the number of transactions
Show Answer
Correct Answer: b) By verifying the identity of customers
Explanation: KYC helps prevent fraud and money laundering by verifying the identity of customers, ensuring that only legitimate individuals and entities can access banking services.
Q30. What document is essential for completing KYC for opening a bank account?
a) Movie ticket
b) Passport
c) Restaurant bill
d) Library membership
Show Answer
Correct Answer: b) Passport
Explanation: A passport is a valid document for KYC purposes, providing both identity and address proof. It is commonly required when opening a bank account.