Q11. What is the primary purpose of Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) To provide loans to small businesses
b) To offer insurance coverage
c) To increase financial inclusion by opening bank accounts for the unbanked
d) To promote digital payments
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Correct Answer: c) To increase financial inclusion by opening bank accounts for the unbanked
Explanation: PMJDY aims to increase financial inclusion by providing basic banking services to individuals who do not have access to banking facilities.
Q12. Which of the following is a security measure for protecting your ATM card and PIN?
a) Sharing your PIN with friends
b) Regularly changing your PIN
c) Writing your PIN on your ATM card
d) Using the same PIN for multiple cards
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Correct Answer: b) Regularly changing your PIN
Explanation: Regularly changing your PIN and keeping it confidential helps protect your ATM card from unauthorized use and potential fraud.
Q13. What does the term “Overdraft” refer to in banking?
a) A type of loan secured by property
b) The ability to withdraw more money than is available in your account
c) A deposit made into a savings account
d) A type of credit card
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Correct Answer: b) The ability to withdraw more money than is available in your account
Explanation: An overdraft allows you to withdraw more money than you have in your account up to an approved limit, often incurring interest and fees.
Q14. Which scheme provides insurance cover for accidental death and disability to low-income individuals?
a) Atal Pension Yojana (APY)
b) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
c) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
d) Pradhan Mantri Mudra Yojana (PMMY)
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Correct Answer: b) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Explanation: PMSBY provides insurance cover against accidental death and disability for low-income individuals at an affordable premium.
Q15. What is a major benefit of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
a) Provides a pension scheme
b) Offers life insurance cover
c) Provides health insurance
d) Grants subsidies for education
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Correct Answer: b) Offers life insurance cover
Explanation: PMJJBY offers a life insurance cover at a low premium to individuals, aiming to provide financial protection in case of death.
Q16. What type of insurance is specifically aimed at old-age pension for unorganized sector workers?
a) Pradhan Mantri Jan Dhan Yojana (PMJDY)
b) Atal Pension Yojana (APY)
c) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
d) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
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Correct Answer: b) Atal Pension Yojana (APY)
Explanation: APY is a pension scheme aimed at providing a guaranteed minimum pension to individuals in the unorganized sector after the age of 60.
Q17. Which of the following is NOT a benefit of Pradhan Mantri Mudra Yojana (PMMY)?
a) Provides loans to small businesses
b) Offers insurance cover for loans
c) Encourages entrepreneurship
d) Supports the digital payment infrastructure
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Correct Answer: d) Supports the digital payment infrastructure
Explanation: PMMY provides financial support to small businesses and entrepreneurs through loans but does not directly support digital payment infrastructure.
Q18. What is a cheque used for in banking?
a) Transferring money electronically
b) Withdrawing cash from an ATM
c) Making payments or transferring funds through a written document
d) Opening a new bank account
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Correct Answer: c) Making payments or transferring funds through a written document
Explanation: A cheque is a written order to a bank to pay a specific amount of money from the account holder’s account to the payee.
Q19. What does a Demand Draft (DD) require for issuance?
a) Personal identification
b) Bank account balance
c) Specific payee’s details
d) All of the above
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Correct Answer: d) All of the above
Explanation: A Demand Draft requires personal identification, a sufficient bank account balance, and details of the payee for issuance.
Q20. What is the primary function of a Fixed Deposit Account?
a) To provide high liquidity
b) To offer high interest rates for a fixed tenure
c) To facilitate frequent transactions
d) To provide overdraft facilities
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Correct Answer: b) To offer high interest rates for a fixed tenure
Explanation: Fixed Deposit Accounts offer higher interest rates compared to savings accounts, provided the money is kept for a fixed tenure.