Q81. Which scheme provides life insurance coverage to individuals at a low premium with a focus on rural areas?
a) Atal Pension Yojana (APY)
b) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
c) Pradhan Mantri Jan Dhan Yojana (PMJDY)
d) Pradhan Mantri Mudra Yojana (PMMY)
Show Answer
Correct Answer: b) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Explanation: PMJJBY offers affordable life insurance coverage, especially targeting individuals in rural and low-income areas, with minimal premium requirements.
Q82. What is a Demand Draft (DD) used for?
a) International transactions
b) Secured local payments
c) Online bill payments
d) Cash withdrawals
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Correct Answer: b) Secured local payments
Explanation: A Demand Draft is used for secure local payments as it is issued by a bank and guarantees payment to the recipient.
Q83. What feature distinguishes a Fixed Deposit (FD) from a Recurring Deposit (RD)?
a) FD requires a lump sum deposit; RD requires regular deposits
b) RD has a higher interest rate than FD
c) FD allows more frequent withdrawals than RD
d) RD offers more flexibility in deposit amounts than FD
Show Answer
Correct Answer: a) FD requires a lump sum deposit; RD requires regular deposits
Explanation: A Fixed Deposit requires a one-time lump sum deposit for a fixed term, while a Recurring Deposit involves regular monthly deposits.
Q84. What is the main advantage of a Pradhan Mantri Jan Dhan Yojana (PMJDY) account in terms of accessibility?
a) It provides high-yield savings accounts
b) It offers free insurance and pension benefits
c) It ensures access to banking services for unbanked individuals
d) It provides instant loan approvals
Show Answer
Correct Answer: c) It ensures access to banking services for unbanked individuals
Explanation: PMJDY aims to increase financial inclusion by providing access to basic banking services for individuals who previously did not have bank accounts.
Q85. What does the term “Know Your Customer” (KYC) refer to?
a) A process for verifying the identity of customers
b) A method for calculating interest rates
c) A system for issuing credit cards
d) A technique for handling customer complaints
Show Answer
Correct Answer: a) A process for verifying the identity of customers
Explanation: KYC is a process used by financial institutions to verify the identity of their customers, preventing fraud and ensuring regulatory compliance.
Q86. What type of card is typically used for making purchases directly from a bank account?
a) Prepaid Card
b) Credit Card
c) Debit Card
d) Loyalty Card
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Correct Answer: c) Debit Card
Explanation: A Debit Card is linked to a customer’s bank account and allows for direct purchases and withdrawals from the account balance.
Q87. Which insurance scheme focuses on providing a pension to individuals from the unorganized sector?
a) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
b) Atal Pension Yojana (APY)
c) Pradhan Mantri Mudra Yojana (PMMY)
d) Pradhan Mantri Jan Dhan Yojana (PMJDY)
Show Answer
Correct Answer: b) Atal Pension Yojana (APY)
Explanation: APY provides a guaranteed pension to individuals in the unorganized sector, ensuring a source of income after retirement.
Q88. What is a typical benefit of a Savings Bank Account?
a) Higher interest rates on large deposits
b) Free credit cards
c) Interest accrual on the deposited funds
d) Insurance coverage for account holders
Show Answer
Correct Answer: c) Interest accrual on the deposited funds
Explanation: Savings Bank Accounts generally offer interest on the deposited funds, helping customers to grow their savings over time.
Q89. Which banking service allows customers to access their accounts and perform transactions via the internet?
a) Mobile Banking
b) Telephone Banking
c) Internet Banking
d) ATM Services
Show Answer
Correct Answer: c) Internet Banking
Explanation: Internet Banking provides customers with the ability to perform banking transactions online, offering convenience and accessibility from any location with internet access.
Q90. What is the primary feature of a Pradhan Mantri Mudra Yojana (PMMY) loan?
a) High-interest rates
b) Low-interest rates and minimal documentation
c) Guaranteed high credit limits
d) Instant approval for large amounts
Show Answer
Correct Answer: b) Low-interest rates and minimal documentation
Explanation: PMMY loans offer low-interest rates and require minimal documentation, making it easier for small businesses and entrepreneurs to access funding.