Q51. How does UPI enhance the user experience for mobile payments?
a) By integrating multiple bank accounts into a single platform
b) By requiring physical visits to the bank
c) By offering high transaction limits
d) By using paper-based transaction methods
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Correct Answer: a) By integrating multiple bank accounts into a single platform
Explanation: UPI enhances user experience by integrating multiple bank accounts into a single mobile app, allowing for streamlined and efficient mobile payments.
Q52. Which of the following is a benefit of using AEPS?
a) Secure transactions using biometric authentication
b) Requires internet connectivity for transactions
c) Limited to credit card payments
d) Offers high transaction limits
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Correct Answer: a) Secure transactions using biometric authentication
Explanation: AEPS (Aadhaar Enabled Payment System) offers the benefit of secure transactions through biometric authentication, such as fingerprint recognition, ensuring safety and accuracy.
Q53. What type of transaction does the e-Wallet typically facilitate?
a) Digital payments and transfers
b) Physical cash withdrawals
c) Manual cheque processing
d) Bank account opening
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Correct Answer: a) Digital payments and transfers
Explanation: e-Wallets facilitate digital payments and transfers, allowing users to manage their funds electronically and make transactions without needing physical cash or cheques.
Q54. What does the acronym IMPS stand for in digital banking?
a) Immediate Payment Service
b) International Money Payment System
c) Instant Money Processing Service
d) Immediate Mobile Payment System
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Correct Answer: a) Immediate Payment Service
Explanation: IMPS (Immediate Payment Service) is used for instant and real-time electronic money transfers, providing a quick and efficient way to move funds between accounts.
Q55. Which digital financial tool is often used for small-value transactions?
a) UPI
b) RTGS
c) NEFT
d) IMPS
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Correct Answer: d) IMPS
Explanation: IMPS (Immediate Payment Service) is commonly used for small-value transactions due to its quick and real-time processing capabilities, suitable for everyday transfers.
Q56. What is the primary purpose of online bill payment services?
a) To manage and pay utility bills electronically
b) To generate physical receipts for transactions
c) To store large amounts of cash
d) To offer investment opportunities
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Correct Answer: a) To manage and pay utility bills electronically
Explanation: Online bill payment services are primarily used to manage and pay utility bills electronically, providing a convenient and efficient method for handling recurring expenses.
Q57. What is a feature of RTGS transactions that differentiates it from NEFT?
a) Immediate processing and settlement
b) Batch processing of transactions
c) Limited to small amounts
d) Requires internet access for transactions
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Correct Answer: d) Pottery
Explanation: Inscriptions, coins, and manuscripts are all sources of Ancient Indian history, but pottery is not considered a significant source.
Q58. What is a typical use of a credit card in digital financial transactions?
a) To make purchases and borrow funds up to a credit limit
b) To directly access cash from an ATM
c) To deposit funds into a savings account
d) To store physical cash
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Correct Answer: a) To make purchases and borrow funds up to a credit limit
Explanation: Credit cards are used for making purchases and borrowing funds up to a pre-set credit limit, with the option to repay the amount borrowed over time.
Q59. Which financial tool provides a way to store funds digitally and make payments using a mobile app?
a) e-Wallet
b) RTGS
c) USSD
d) PoS
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Correct Answer: a) e-Wallet
Explanation: e-Wallets allow users to store funds digitally and make payments using a mobile app, providing a secure and convenient method for managing transactions electronically.
Q60. How does UPI simplify the process of transferring funds between bank accounts?
a) By using a single platform for multiple bank accounts
b) By requiring physical visits to each bank
c) By processing transactions only during business hours
d) By generating paper-based transaction records
Show Answer
Correct Answer: a) By using a single platform for multiple bank accounts
Explanation: UPI simplifies fund transfers by integrating multiple bank accounts into a single platform, making it easier to manage and transfer funds between accounts.