Q31. IMPS transactions can be performed:
a) Only during business hours
b) Within the same city
c) Anytime, including holidays
d) Using paper forms
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Correct Answer: c) Anytime, including holidays
Explanation: IMPS (Immediate Payment Service) allows transactions to be performed anytime, including holidays, providing 24/7 access to money transfers.
Q32. The primary function of an OTP is to:
a) Track spending history
b) Authenticate transactions securely
c) Offer investment advice
d) Encrypt files
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Correct Answer: b) Authenticate transactions securely
Explanation: An OTP (One Time Password) is used to authenticate transactions securely by providing a temporary code for verification.
Q33. What is a key feature of UPI?
a) Physical card issuance
b) Single-point payment integration
c) Manual check processing
d) Offline payment systems
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Correct Answer: b) Single-point payment integration
Explanation: UPI (Unified Payment Interface) provides a single-point payment integration for multiple bank accounts, simplifying digital transactions.
Q34. The function of an e-Wallet is to:
a) Store physical currency securely
b) Facilitate online transactions and payment management
c) Manage physical assets
d) Provide investment opportunities
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Correct Answer: b) Facilitate online transactions and payment management
Explanation: An e-Wallet facilitates online transactions and payment management by storing digital payment information securely.
Q35. What is a common use of a debit card?
a) Borrowing funds for purchases
b) Directly accessing funds from a bank account
c) Earning cashback rewards
d) Financing large purchases
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Correct Answer: b) Directly accessing funds from a bank account
Explanation: A debit card is used to directly access funds from a linked bank account for making purchases or withdrawing cash.
Q36. USSD codes can be used for:
a) Internet banking
b) Accessing text-based financial services
c) Making international payments
d) Printing bank statements
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Correct Answer: b) Accessing text-based financial services
Explanation: USSD (Unstructured Supplementary Service Data) codes are used to access text-based financial services on mobile devices.
Q37. Which digital financial tool is typically used for small-value transactions?
a) RTGS
b) IMPS
c) NEFT
d) e-Wallet
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Correct Answer: b) IMPS
Explanation: IMPS (Immediate Payment Service) is suitable for small-value transactions that require immediate processing and settlement.
Q38. A key advantage of online bill payment is:
a) Physical receipt handling
b) Automatic updates on billing
c) Convenience of managing bills from anywhere
d) Handling cash payments
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Correct Answer: c) Convenience of managing bills from anywhere
Explanation: Online bill payment provides the convenience of managing and paying bills from anywhere, without the need for physical visits or cash handling.
Q39. What is the benefit of using an e-Wallet for online transactions?
a) Earning interest on stored funds
b) Storing physical cash
c) Simplifying payment processes and managing digital finances
d) Enhancing credit scores
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Correct Answer: c) Simplifying payment processes and managing digital finances
Explanation: An e-Wallet simplifies payment processes and helps manage digital finances by storing payment information and facilitating online transactions.
Q40. What does NEFT stand for in digital banking?
a) National Electronic Fund Transfer
b) National Electronic Financial Transaction
c) National External Fund Transfer
d) National Electronic Fund Test
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Correct Answer: a) National Electronic Fund Transfer
Explanation: NEFT stands for National Electronic Fund Transfer, a system used for transferring funds electronically between banks.