Q21. How does a QR Code enhance payment security?
a) By generating unique codes for each transaction
b) By storing encrypted passwords
c) By requiring physical signatures
d) By linking to a secure payment gateway
Show Answer
Correct Answer: a) By generating unique codes for each transaction
Explanation: QR Codes enhance payment security by generating unique codes for each transaction, which reduces the risk of fraud and unauthorized access.
Q22. What is the primary benefit of using UPI for financial transactions?
a) Simplified and unified payment process across multiple bank accounts
b) High transaction fees
c) Limited to only one bank account
d) Requires physical cash handling
Show Answer
Correct Answer: a) Simplified and unified payment process across multiple bank accounts
Explanation: UPI provides a simplified and unified payment process by integrating multiple bank accounts into a single app, making transactions more efficient and convenient.
Q23. Which financial tool allows transactions without an internet connection?
a) USSD
b) UPI
c) e-Wallet
d) NEFT
Show Answer
Correct Answer: a) USSD
Explanation: USSD (Unstructured Supplementary Service Data) allows financial transactions and access to banking services without needing an internet connection, using mobile network services.
Q24. Which service is typically used for transferring large sums of money?
a) RTGS
b) IMPS
c) NEFT
d) USSD
Show Answer
Correct Answer: a) RTGS
Explanation: RTGS (Real-Time Gross Settlement) is used for transferring large sums of money as it provides real-time processing and settlement of high-value transactions.
Q25. What is a common feature of e-Wallets?
a) They allow users to store funds digitally and make payments
b) They require physical cash to operate
c) They offer only physical cards
d) They provide high interest rates on stored funds
Show Answer
Correct Answer: a) They allow users to store funds digitally and make payments
Explanation: e-Wallets provide a digital platform for storing funds and making payments, offering convenience and security without needing physical cash or cards.
Q26. What type of payment does the AEPS system facilitate?
a) Payments using Aadhaar-linked biometric authentication
b) Payments using credit or debit cards
c) Payments via traditional bank transfers
d) Payments using digital currency
Show Answer
Correct Answer: a) Payments using Aadhaar-linked biometric authentication
Explanation: AEPS (Aadhaar Enabled Payment System) facilitates payments using Aadhaar-linked biometric authentication, ensuring secure transactions through fingerprint verification.
Q27. What does the term “AutoPay” generally refer to?
a) Automated payment of recurring bills
b) Automatic generation of payment receipts
c) Manual payment system
d) Direct deposit of salaries
Show Answer
Correct Answer: a) Automated payment of recurring bills
Explanation: AutoPay refers to the automated payment of recurring bills or subscriptions, where payments are scheduled and deducted automatically from the user’s account.
Q28. What feature of UPI makes it user-friendly?
a) Integration of multiple bank accounts into one platform
b) Requirement for physical card use
c) High transaction fees
d) Complex authentication processes
Show Answer
Correct Answer: a) Integration of multiple bank accounts into one platform
Explanation: UPI’s integration of multiple bank accounts into a single platform simplifies the payment process, making it user-friendly and convenient for managing transactions.
Q29. Which tool allows secure online transactions by generating unique codes for each transaction?
a) OTP
b) QR Code
c) USSD
d) e-Wallet
Show Answer
Correct Answer: a) OTP
Explanation: OTP (One Time Password) enhances online transaction security by generating unique codes for each transaction, which helps prevent unauthorized access and fraud.
Q30. What is the main function of an internet banking service like NEFT?
a) To transfer funds electronically between banks
b) To generate physical bank checks
c) To provide cash withdrawal services
d) To manage stock investments
Show Answer
Correct Answer: a) To transfer funds electronically between banks
Explanation: NEFT (National Electronic Funds Transfer) facilitates the electronic transfer of funds between banks, providing a secure and efficient method for managing transactions.