Q11. IMPS provides:
a) Real-time payment service
b) Offline payment services
c) International payment solutions
d) Credit scoring
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Correct Answer: a) Real-time payment service
Explanation: IMPS (Immediate Payment Service) provides real-time payment services for instant money transfers across banks.
Q12. Online Bill Payment involves:
a) Making payments for utility bills through digital platforms
b) Sending physical checks
c) Conducting face-to-face transactions
d) Depositing cash at bank counters
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Correct Answer: a) Making payments for utility bills through digital platforms
Explanation: Online Bill Payment involves paying utility bills, such as electricity, water, and gas, through digital platforms for convenience.
Q13. What is the purpose of using a debit card?
a) To earn rewards on purchases
b) To make payments directly from the linked bank account
c) To extend credit limits
d) To receive cashback on transactions
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Correct Answer: b) To make payments directly from the linked bank account
Explanation: A debit card allows users to make payments directly from their bank account, debiting the amount spent from the account balance.
Q14. In which scenario is QR code most useful?
a) Sending a letter
b) Scanning a barcode for product details
c) Accessing a website or payment link
d) Making a phone call
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Correct Answer: c) Accessing a website or payment link
Explanation: QR codes are particularly useful for quickly accessing websites or payment links by scanning with a mobile device.
Q15. What is the function of an OTP in online transactions?
a) To authorize the payment securely
b) To encrypt the entire transaction data
c) To provide a detailed transaction history
d) To validate the user’s credit score
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Correct Answer: a) To authorize the payment securely
Explanation: An OTP (One Time Password) is used to authorize online transactions securely by providing a temporary code for verification.
Q16. UPI facilitates:
a) Paper-based transactions
b) Direct debits from credit cards
c) Mobile payments through a unified interface
d) International wire transfers
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Correct Answer: c) Mobile payments through a unified interface
Explanation: UPI (Unified Payment Interface) facilitates mobile payments through a unified interface, allowing users to link multiple bank accounts and perform transactions easily.
Q17. AEPS requires:
a) A credit card
b) Biometric authentication
c) A physical bank visit
d) A security token
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Correct Answer: b) Biometric authentication
Explanation: AEPS (Aadhaar Enabled Payment System) requires biometric authentication, such as fingerprints, to authorize transactions linked with the Aadhaar number.
Q18. USSD codes are typically used for:
a) Video streaming
b) Sending emails
c) Accessing financial services through text-based menus
d) High-speed data transfer
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Correct Answer: c) Accessing financial services through text-based menus
Explanation: USSD (Unstructured Supplementary Service Data) codes are used to access financial services through simple text-based menus on mobile devices.
Q19. A PoS terminal is commonly used for:
a) Processing sales transactions in retail environments
b) Conducting high-value bank transfers
c) Creating digital payment apps
d) Encrypting transaction data
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Correct Answer: a) Processing sales transactions in retail environments
Explanation: A PoS (Point of Sale) terminal is used to process sales transactions in retail environments, including payments by card and mobile devices.
Q20. What does e-Wallet enable users to do?
a) Store physical cash securely
b) Manage digital transactions and store payment information
c) Earn interest on deposits
d) Access online educational resources
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Correct Answer: b) Manage digital transactions and store payment information
Explanation: An e-Wallet enables users to manage digital transactions, store payment information securely, and make online payments easily.