Q31. What does a Demand Draft (DD) guarantee?
a) Instant cash withdrawal
b) Secure payment to the payee
c) Free banking services
d) Credit limit enhancement
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Correct Answer: b) Secure payment to the payee
Explanation: A Demand Draft guarantees secure payment to the payee as it is issued by the bank and is considered a secure form of payment.
Q32. What type of card is designed for online transactions and is preloaded with a fixed amount?
a) Debit Card
b) Credit Card
c) Prepaid Card
d) ATM Card
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Correct Answer: c) Prepaid Card
Explanation: A Prepaid Card is preloaded with a specific amount and can be used for online transactions up to the value loaded onto the card.
Q33. What is a common feature of an overdraft facility?
a) Provides insurance cover
b) Allows withdrawal beyond the account balance
c) Offers high interest rates on deposits
d) Facilitates international transactions
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Correct Answer: b) Allows withdrawal beyond the account balance
Explanation: An overdraft facility allows account holders to withdraw more money than what is available in their account, up to a specified limit.
Q34. How does Pradhan Mantri Mudra Yojana (PMMY) support small businesses?
a) By providing grants
b) By offering subsidized interest rates on loans
c) By offering free business training
d) By providing tax exemptions
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Correct Answer: b) By offering subsidized interest rates on loans
Explanation: PMMY provides loans to small businesses and entrepreneurs with subsidized interest rates to help them start and expand their ventures.
Q35. What is the main purpose of the Atal Pension Yojana (APY)?
a) To provide life insurance
b) To offer a guaranteed pension to retirees
c) To give loans for education
d) To support healthcare expenses
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Correct Answer: b) To offer a guaranteed pension to retirees
Explanation: APY provides a guaranteed pension to individuals after the age of 60, ensuring financial security during retirement.
Q36. Which banking service provides the convenience of banking transactions without visiting a branch?
a) Telephone Banking
b) Mobile Banking
c) ATM Services
d) Internet Banking
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Correct Answer: b) Mobile Banking
Explanation: Mobile Banking allows customers to conduct banking transactions from their mobile devices, providing convenience and accessibility.
Q37. What is a common benefit of using a Credit Card?
a) Earn rewards and cashback
b) No interest charges
c) Unlimited withdrawals
d) No annual fees
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Correct Answer: a) Earn rewards and cashback
Explanation: Credit Cards often offer rewards points, cashback, and other incentives for usage, in addition to allowing credit purchases.
Q38. Which scheme provides life insurance coverage for accidental death or disability with a low premium?
a) Atal Pension Yojana (APY)
b) Pradhan Mantri Jan Dhan Yojana (PMJDY)
c) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
d) Pradhan Mantri Mudra Yojana (PMMY)
Show Answer
Correct Answer: c) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Explanation: PMSBY provides life insurance coverage for accidental death and disability at a minimal premium, making it affordable for low-income individuals.
Q39. What is the main advantage of using an ATM card?
a) Allows online purchases
b) Provides instant cash withdrawals
c) Offers insurance benefits
d) Helps build credit history
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Correct Answer: b) Provides instant cash withdrawals
Explanation: An ATM card allows account holders to withdraw cash from ATMs quickly and conveniently.
Q40. Which document is often used to verify your identity when opening a new bank account?
a) Voter ID
b) Property Deed
c) Medical Certificate
d) Driving License
Show Answer
Correct Answer: a) Voter ID
Explanation: The Voter ID is commonly used as a proof of identity for opening a new bank account, along with other documents like Aadhar Card or Passport.