Q21. What is the key feature of NEFT?
a) Immediate settlement of transactions
b) Transfer of funds in real-time
c) Batch processing of transactions
d) High transaction limits
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Correct Answer: c) Batch processing of transactions
Explanation: NEFT (National Electronic Fund Transfer) uses batch processing to transfer funds in batches, typically with settlement at specific intervals.
Q22. RTGS transactions are characterized by:
a) Delayed settlement
b) High transaction fees
c) Immediate and real-time settlement
d) Limited transaction amounts
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Correct Answer: c) Immediate and real-time settlement
Explanation: RTGS (Real Time Gross Settlement) transactions are characterized by immediate and real-time settlement, making it suitable for high-value transfers.
Q23. IMPS offers:
a) Settlements on the next business day
b) Transfer limits up to a specific threshold
c) Instant and 24/7 money transfer service
d) Paper-based transaction processing
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Correct Answer: c) Instant and 24/7 money transfer service
Explanation: IMPS (Immediate Payment Service) offers instant and 24/7 money transfer service, allowing users to transfer funds anytime.
Q24. An e-Wallet can be used to:
a) Store physical receipts
b) Make transactions online
c) Manage offline banking accounts
d) Conduct face-to-face financial consultations
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Correct Answer: b) Make transactions online
Explanation: An e-Wallet is used to make transactions online, allowing users to pay for goods and services through digital platforms.
Q25. The main advantage of using USSD for mobile banking is:
a) High-speed internet access
b) User-friendly graphical interface
c) Ability to access services without internet connectivity
d) Extensive data storage
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Correct Answer: c) Ability to access services without internet connectivity
Explanation: USSD (Unstructured Supplementary Service Data) allows users to access mobile banking services without needing an internet connection, using text-based menus.
Q26. To perform transactions using AEPS, one must:
a) Have a credit card
b) Use biometric authentication
c) Visit a bank branch
d) Have a secure email address
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Correct Answer: b) Use biometric authentication
Explanation: AEPS (Aadhaar Enabled Payment System) requires biometric authentication for transaction authorization, linking financial services to the Aadhaar number.
Q27. The function of a credit card is primarily to:
a) Provide immediate cash
b) Offer a short-term credit facility
c) Earn frequent flyer miles
d) Facilitate long-term savings
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Correct Answer: b) Offer a short-term credit facility
Explanation: A credit card offers a short-term credit facility allowing users to make purchases and pay back the borrowed amount within a specified period.
Q28. What does e-Wallet commonly store?
a) Cash
b) Digital currency and payment information
c) Personal identification documents
d) Physical gift cards
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Correct Answer: b) Digital currency and payment information
Explanation: An e-Wallet commonly stores digital currency and payment information, enabling users to make transactions and manage their finances electronically.
Q29. In which situation would RTGS be most appropriate?
a) Small online purchases
b) Interbank transfers with high value
c) Routine utility bill payments
d) Monthly subscription services
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Correct Answer: b) Interbank transfers with high value
Explanation: RTGS (Real Time Gross Settlement) is most appropriate for interbank transfers involving high-value transactions requiring immediate settlement.
Q30. Which digital financial tool provides immediate transaction confirmation and settlement?
a) NEFT
b) RTGS
c) USSD
d) e-Wallet
Show Answer
Correct Answer: b) RTGS
Explanation: RTGS (Real Time Gross Settlement) provides immediate transaction confirmation and settlement, making it ideal for high-value transfers.