Q41. What does the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) primarily offer?
a) Health insurance
b) Life insurance
c) Pension benefits
d) Subsidized loans
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Correct Answer: b) Life insurance
Explanation: PMJJBY provides life insurance coverage to individuals, ensuring financial protection in case of death.
Q42. What is the purpose of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in terms of banking access?
a) To offer high-interest savings accounts
b) To provide access to financial services for the unbanked
c) To promote luxury banking services
d) To offer free financial advisory services
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Correct Answer: b) To provide access to financial services 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.
Q43. What feature does a Fixed Deposit Account offer that is different from a savings account?
a) Higher interest rates
b) More liquidity
c) Lower interest rates
d) Greater access to funds
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Correct Answer: a) Higher interest rates
Explanation: Fixed Deposit Accounts offer higher interest rates compared to savings accounts in exchange for keeping funds deposited for a fixed period.
Q44. Which of the following services is typically NOT available through mobile banking?
a) Bill payments
b) Fund transfers
c) Opening a new account
d) Balance inquiry
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Correct Answer: c) Opening a new account
Explanation: Mobile banking usually allows for transactions such as bill payments, fund transfers, and balance inquiries, but opening a new account is generally done at a branch.
Q45. What does the term “cheque” refer to in banking?
a) A loan agreement
b) A document used to withdraw cash
c) A written order to pay a specified amount from a bank account
d) A credit card bill
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Correct Answer: c) A written order to pay a specified amount from a bank account
Explanation: A cheque is a written document that orders a bank to pay a specific amount of money from the account holder’s account to the payee.
Q46. What is the main feature of a Prepaid Card?
a) Provides credit limits
b) Requires loading funds before use
c) Offers insurance coverage
d) Allows overdraft
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Correct Answer: b) Requires loading funds before use
Explanation: A Prepaid Card requires the user to load a certain amount of funds onto it before it can be used for transactions.
Q47. Which of the following is a social security scheme that provides a pension to senior citizens?
a) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
b) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
c) Atal Pension Yojana (APY)
d) Pradhan Mantri Jan Dhan Yojana (PMJDY)
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Correct Answer: c) Atal Pension Yojana (APY)
Explanation: The Atal Pension Yojana provides a guaranteed pension to senior citizens, ensuring financial support in their old age.
Q48. What does KYC stand for in the context of banking?
a) Know Your Customer
b) Know Your Credit
c) Know Your Company
d) Know Your Cash
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Correct Answer: a) Know Your Customer
Explanation: KYC, or Know Your Customer, is a process used by banks to verify the identity of their customers to prevent fraud and comply with regulations.
Q49. What type of account is typically used for day-to-day transactions by businesses?
a) Savings Account
b) Fixed Deposit Account
c) Current Account
d) Recurring Deposit Account
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Correct Answer: c) Current Account
Explanation: Current Accounts are designed for frequent transactions by businesses and individuals, and they often have fewer restrictions on withdrawals.
Q50. What is the primary purpose of insurance?
a) To offer financial protection against specified risks
b) To provide loans at low interest rates
c) To save money for retirement
d) To avoid paying taxes
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Correct Answer: a) To offer financial protection against specified risks
Explanation: Insurance provides financial protection against risks such as death, disability, illness, or property damage, helping to manage and mitigate potential losses.