Q71. What is the benefit of a Current Account for businesses?
a) Higher interest rates
b) Frequent transactions with no restrictions
c) Limited withdrawals
d) Fixed deposit benefits
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Correct Answer: b) Frequent transactions with no restrictions
Explanation: Current Accounts offer businesses the ability to conduct frequent transactions without limitations, which is essential for their daily operations.
Q72. What does a Demand Draft (DD) ensure?
a) Immediate access to funds
b) Security and guarantee of payment
c) Free banking services
d) Quick approval for loans
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Correct Answer: b) Security and guarantee of payment
Explanation: A Demand Draft ensures that the payment is secured and guaranteed by the issuing bank.
Q73. What is the main advantage of using a Credit Card?
a) Ability to earn rewards and cashback
b) No need for a credit history
c) High interest rates
d) Free cash withdrawals
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Correct Answer: a) Ability to earn rewards and cashback
Explanation: Credit Cards offer benefits like rewards points and cashback on purchases, making them advantageous for spending.
Q74. What is the purpose of the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
a) To provide accidental death and disability insurance
b) To offer health insurance
c) To facilitate retirement savings
d) To provide educational loans
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Correct Answer: a) To provide accidental death and disability insurance
Explanation: PMSBY is designed to provide coverage for accidental death and disability with a low premium.
Q75. What does KYC help banks achieve?
a) Verify customer identity
b) Offer higher interest rates
c) Provide loans without collateral
d) Increase credit limits
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Correct Answer: a) Verify customer identity
Explanation: KYC (Know Your Customer) helps banks verify the identity of their customers to prevent fraud and comply with regulations.
Q76. What is a key feature of a Fixed Deposit Account?
a) Higher interest rates compared to savings accounts
b) Unlimited deposits and withdrawals
c) No interest accrual
d) Frequent transaction capability
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Correct Answer: a) Higher interest rates compared to savings accounts
Explanation: Fixed Deposit Accounts offer higher interest rates for funds deposited over a fixed period, unlike savings accounts.
Q77. What does the term “Cheque” refer to in banking?
a) A written order to pay a specified amount from a bank account
b) A loan application form
c) A credit card payment
d) A deposit slip
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Correct Answer: a) A written order to pay a specified amount from a bank account
Explanation: A cheque is a written order directing a bank to pay a specified amount of money from the drawer’s account to the payee.
Q78. Which insurance scheme offers financial protection in the event of accidental death or disability?
a) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
b) Atal Pension Yojana (APY)
c) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
d) Pradhan Mantri Jan Dhan Yojana (PMJDY)
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Correct Answer: c) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Explanation: PMSBY provides financial protection against accidental death and disability with a low premium.
Q79. What does the term “Recurring Deposit” refer to?
a) A type of savings account with no fixed deposit
b) A fixed deposit where funds are deposited regularly
c) A deposit account with flexible withdrawal options
d) A savings account with a high interest rate
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Correct Answer: b) A fixed deposit where funds are deposited regularly
Explanation: A Recurring Deposit Account allows for regular deposits of a fixed amount over a specific period, offering a guaranteed return on investment.
Q80. What is the benefit of a Savings Account?
a) Earning interest on deposited funds
b) Unlimited access to credit
c) High minimum balance requirements
d) Frequent cash withdrawals
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Correct Answer: a) Earning interest on deposited funds
Explanation: Savings Accounts offer interest on deposited funds, helping account holders earn money on their savings over time.