Q41. Which financial tool is known for facilitating peer-to-peer transfers via mobile apps?
a) UPI
b) USSD
c) RTGS
d) NEFT
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Correct Answer: a) UPI
Explanation: UPI (Unified Payment Interface) facilitates peer-to-peer transfers via mobile apps, allowing users to send and receive money quickly and conveniently.
Q42. What is the primary function of internet banking services like NEFT?
a) To transfer funds electronically between different banks
b) To manage offline financial transactions
c) To offer credit card services
d) To generate physical bank statements
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Correct Answer: a) To transfer funds electronically between different banks
Explanation: NEFT (National Electronic Funds Transfer) allows for the electronic transfer of funds between different banks, providing a secure and efficient method for managing bank transactions.
Q43. What is the advantage of using a credit card over a debit card?
a) Ability to borrow funds up to a certain limit
b) Direct linkage to a bank account
c) Immediate deduction from the account balance
d) Higher transaction fees
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Correct Answer: a) Ability to borrow funds up to a certain limit
Explanation: A credit card offers the advantage of borrowing funds up to a predetermined limit, which provides more flexibility compared to a debit card that draws directly from the bank account.
Q44. How does an e-Wallet improve convenience for online shoppers?
a) By storing payment details securely and facilitating quick transactions
b) By requiring manual input of payment details for each purchase
c) By providing physical cash for online transactions
d) By offering high transaction fees
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Correct Answer: a) By storing payment details securely and facilitating quick transactions
Explanation: An e-Wallet improves convenience by securely storing payment details and facilitating quick transactions, making online shopping faster and easier.
Q45. Which digital financial tool is designed specifically for making payments using a mobile number linked to a bank account?
a) UPI
b) QR Code
c) e-Wallet
d) AEPS
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Correct Answer: a) UPI
Explanation: UPI (Unified Payment Interface) is designed for making payments using a mobile number linked to a bank account, streamlining the payment process through a single app.
Q46. What is a key characteristic of RTGS transactions?
a) Real-time processing and settlement
b) Batch processing of transactions
c) Limited to small-value transactions
d) Requires physical paperwork
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Correct Answer: a) Real-time processing and settlement
Explanation: RTGS (Real-Time Gross Settlement) is characterized by real-time processing and settlement of transactions, providing immediate and irrevocable transfers.
Q47. What is the primary function of an e-Wallet in digital transactions?
a) To store and manage digital funds for secure transactions
b) To physically carry cash
c) To manage offline financial records
d) To provide high-interest savings accounts
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Correct Answer: a) To store and manage digital funds for secure transactions
Explanation: The primary function of an e-Wallet is to store and manage digital funds, enabling secure and convenient transactions without needing physical cash.
Q48. What security feature is commonly used with OTPs in financial transactions?
a) Unique code for each transaction
b) Static passwords
c) Physical card numbers
d) Encryption of emails
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Correct Answer: a) Unique code for each transaction
Explanation: OTPs (One Time Passwords) use a unique code for each transaction, enhancing security by ensuring that the code is only valid for a single use and specific session.
Q49. What is a significant advantage of using IMPS for fund transfers?
a) Immediate and round-the-clock availability
b) High transaction fees
c) Physical presence required at the bank
d) Limited to domestic transactions only
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Correct Answer: a) Immediate and round-the-clock availability
Explanation: IMPS (Immediate Payment Service) offers the significant advantage of immediate and round-the-clock availability, allowing for quick fund transfers at any time.
Q50. What feature distinguishes USSD from other digital financial tools?
a) No need for an internet connection
b) Requires physical banking transactions
c) Limited to high-value transactions
d) Involves complex authentication
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Correct Answer: a) No need for an internet connection
Explanation: USSD (Unstructured Supplementary Service Data) is unique in that it does not require an internet connection, making it accessible for mobile banking services through basic mobile networks.