Q11. What is RTGS used for in banking?
a) Real-Time Gross Settlement
b) Random Time Gross Settlement
c) Real-Time General Settlement
d) Regular Transaction Gross Settlement
Show Answer
Correct Answer: a) Real-Time Gross Settlement
Explanation: RTGS (Real-Time Gross Settlement) is used for high-value transactions that are settled in real-time and individually, providing immediate and irrevocable transfers.
Q12. What is IMPS?
a) Immediate Payment Service
b) Instant Money Payment System
c) International Money Payment Service
d) Instant Mobile Payment System
Show Answer
Correct Answer: a) Immediate Payment Service
Explanation: IMPS (Immediate Payment Service) is a real-time electronic fund transfer service that allows instant money transfers 24/7, including weekends and holidays.
Q13. What is an advantage of online bill payments?
a) Payments are processed instantly and can be done anytime
b) They require physical visits to the utility provider
c) They involve high processing fees
d) They offer cash-back rewards
Show Answer
Correct Answer: a) Payments are processed instantly and can be done anytime
Explanation: Online bill payments allow for instant processing and can be done at any time, providing convenience and efficiency compared to traditional methods.
Q14. What is the purpose of a digital financial tool like an e-Wallet?
a) To store and manage digital funds securely
b) To physically carry cash
c) To create physical banking documents
d) To schedule bank appointments
Show Answer
Correct Answer: a) To store and manage digital funds securely
Explanation: An e-Wallet is designed to securely store and manage digital funds, allowing users to make transactions, pay bills, and transfer money electronically.
Q15. How does UPI simplify transactions for users?
a) By integrating multiple bank accounts into a single app
b) By requiring physical bank visits for each transaction
c) By processing transactions via traditional mail
d) By using paper checks for payments
Show Answer
Correct Answer: a) By integrating multiple bank accounts into a single app
Explanation: UPI simplifies transactions by integrating multiple bank accounts into a single mobile app, enabling seamless and quick payments and transfers.
Q16. What type of authentication is commonly used in AEPS?
a) Biometric authentication
b) OTP authentication
c) Password authentication
d) Security question authentication
Show Answer
Correct Answer: a) Biometric authentication
Explanation: AEPS (Aadhaar Enabled Payment System) primarily uses biometric authentication, such as fingerprint recognition, linked to the Aadhaar number for secure transactions.
Q17. What is the main difference between NEFT and RTGS?
a) NEFT processes transactions in batches, while RTGS processes in real-time
b) NEFT is used for international transfers, while RTGS is domestic
c) NEFT requires a physical bank visit, while RTGS is online
d) NEFT has higher transaction limits than RTGS
Show Answer
Correct Answer: a) NEFT processes transactions in batches, while RTGS processes in real-time
Explanation: NEFT processes transactions in batches at scheduled intervals, whereas RTGS processes transactions individually and in real-time for immediate settlement.
Q18. What type of transaction is best suited for IMPS?
a) Immediate and small-value transactions
b) High-value transactions
c) Cross-border transactions
d) Paper-based transactions
Show Answer
Correct Answer: a) Immediate and small-value transactions
Explanation: IMPS (Immediate Payment Service) is best suited for immediate and small-value transactions, allowing quick and real-time transfers.
Q19. What does a Point of Sale (PoS) terminal do?
a) Facilitates electronic transactions at retail locations
b) Stores cash securely
c) Manages online banking accounts
d) Generates financial reports
Show Answer
Correct Answer: a) Facilitates electronic transactions at retail locations
Explanation: A PoS terminal facilitates electronic transactions at retail locations, allowing customers to pay using credit or debit cards.
Q20. What is the role of an e-Wallet in digital payments?
a) To store digital currency and facilitate payments
b) To convert physical cash into digital currency
c) To track physical transactions
d) To create bank accounts
Show Answer
Correct Answer: a) To store digital currency and facilitate payments
Explanation: An e-Wallet stores digital currency and facilitates payments and transactions, providing a secure and convenient method for handling funds electronically.