MCQ on Digital Financial Tools and Applications | NIELIT BCC

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Q71. Which tool is best for making digital payments without needing an internet connection?
a) USSD
b) e-Wallet
c) UPI
d) PoS

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Correct Answer: a) USSD
Explanation: USSD (Unstructured Supplementary Service Data) is best for making digital payments without needing an internet connection, using mobile network services instead.

Q72. What does the term “Digital Financial Tools” include?
a) Tools for managing and conducting digital transactions
b) Physical cash management systems
c) Manual transaction records
d) Traditional banking services

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Correct Answer: a) Tools for managing and conducting digital transactions
Explanation: Digital Financial Tools encompass various tools and systems used for managing and conducting transactions electronically, including e-Wallets, UPI, and digital banking services.

Q73. What is the primary purpose of an e-Wallet?
a) To facilitate secure online and mobile payments
b) To physically carry and store cash
c) To provide high-interest savings
d) To manage physical documents

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Correct Answer: a) To facilitate secure online and mobile payments
Explanation: The primary purpose of an e-Wallet is to facilitate secure online and mobile payments by storing digital funds and enabling transactions through a mobile app or online platform.

Q74. Which of the following is a characteristic of NEFT transactions?
a) Batch processing with scheduled settlement times
b) Real-time processing
c) Unlimited transaction amount
d) Requires biometric verification

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Correct Answer: a) Batch processing with scheduled settlement times
Explanation: NEFT (National Electronic Funds Transfer) transactions are processed in batches with scheduled settlement times, making it different from real-time systems like RTGS.

Q75. Which tool would you use to verify a transaction through a one-time password?
a) OTP
b) QR Code
c) e-Wallet
d) PoS

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Correct Answer: a) OTP
Explanation: An OTP (One-Time Password) is used to verify a transaction by providing a unique code for each transaction, enhancing security by ensuring that the code is only valid for a specific use.

Q76. Which digital financial tool allows transactions through text messages?
a) USSD
b) QR Code
c) e-Wallet
d) UPI

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Correct Answer: a) USSD
Explanation: USSD (Unstructured Supplementary Service Data) allows transactions through text messages, making it accessible without internet access and suitable for basic mobile phones.

Q77. What does UPI stand for?
a) Unified Payment Interface
b) Universal Payment Integration
c) Unstructured Payment Interface
d) Unified Processing Interface

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Correct Answer: a) Unified Payment Interface
Explanation: UPI stands for Unified Payment Interface, which allows users to make payments and transfer funds using a mobile app linked to their bank accounts.

Q78. Which of the following digital tools is primarily used for making purchases using a mobile app?
a) e-Wallet
b) USSD
c) NEFT
d) RTGS

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Correct Answer: a) e-Wallet
Explanation: e-Wallets are primarily used for making purchases and managing funds through a mobile app, providing a convenient method for digital transactions.

Q79. What does PoS stand for in digital transactions?
a) Point of Sale
b) Payment of Services
c) Personal Online System
d) Process of Sale

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Correct Answer: a) Point of Sale
Explanation: PoS (Point of Sale) refers to the system used to electronically process card payments at retail locations, facilitating transactions directly at the point of sale.

Q80. Which system enables real-time settlement of high-value transactions?
a) RTGS
b) NEFT
c) IMPS
d) USSD

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Correct Answer: a) RTGS
Explanation: RTGS (Real-Time Gross Settlement) is used for real-time settlement of high-value transactions, ensuring immediate and irrevocable transfer of funds.

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