Q81. What does OTP stand for in digital financial transactions?
a) One-Time Payment
b) One-Time Password
c) Online Transaction Password
d) Online Transfer Protocol
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Correct Answer: b) One-Time Password
Explanation: OTP stands for One-Time Password, which is a security feature used to authenticate transactions or logins by generating a unique password valid for a single use.
Q82. Which system allows for the immediate transfer of high-value funds?
a) NEFT
b) IMPS
c) RTGS
d) USSD
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Correct Answer: c) RTGS
Explanation: RTGS (Real Time Gross Settlement) allows for the immediate transfer of high-value funds, processing transactions in real-time without batching.
Q83. Which financial tool uses a QR code to facilitate transactions?
a) Credit card
b) Debit card
c) UPI
d) e-Wallet
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Correct Answer: c) UPI
Explanation: UPI (Unified Payment Interface) can use QR codes to facilitate transactions, enabling users to make payments by scanning the code.
Q84. What is the main function of an e-Wallet?
a) To store physical cash
b) To provide investment opportunities
c) To facilitate digital transactions and store payment information
d) To manage physical assets
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Correct Answer: c) To facilitate digital transactions and store payment information
Explanation: An e-Wallet’s main function is to facilitate digital transactions and store payment information, allowing users to make payments and manage finances electronically.
Q85. What does AEPS stand for?
a) Automated Electronic Payment System
b) Aadhaar Enabled Payment System
c) Advanced Electronic Payment Service
d) Authorized Electronic Payment Service
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Correct Answer: b) Aadhaar Enabled Payment System
Explanation: AEPS stands for Aadhaar Enabled Payment System, which uses Aadhaar numbers and biometric authentication for secure financial transactions.
Q86. Which tool is used for making payments without using a physical card or cash?
a) Credit card
b) PoS
c) USSD
d) Debit card
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Correct Answer: c) USSD
Explanation: USSD (Unstructured Supplementary Service Data) allows users to make payments without using a physical card or cash, using text-based menus on mobile phones.
Q87. What is a key feature of the UPI system?
a) Handling cash transactions
b) Integrating multiple bank accounts for seamless payments
c) Offering high-value bond investments
d) Managing physical assets
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Correct Answer: b) Integrating multiple bank accounts for seamless payments
Explanation: UPI (Unified Payment Interface) integrates multiple bank accounts into a single platform for seamless digital payments and transfers.
Q88. What is the primary benefit of using online bill payment services?
a) Managing physical cash
b) Accessing investment portfolios
c) Convenience of paying bills from anywhere at any time
d) Handling high-value transactions
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Correct Answer: c) Convenience of paying bills from anywhere at any time
Explanation: Online bill payment services offer the convenience of paying bills from anywhere at any time, eliminating the need to visit physical locations.
Q89. Which tool is used for secure, immediate fund transfers between banks using mobile phones?
a) NEFT
b) IMPS
c) RTGS
d) e-Wallet
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Correct Answer: b) IMPS
Explanation: IMPS (Immediate Payment Service) is used for secure, immediate fund transfers between banks using mobile phones, providing round-the-clock access.
Q90. Which payment method is commonly used for in-store purchases?
a) e-Wallet
b) RTGS
c) IMPS
d) NEFT
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Correct Answer: a) e-Wallet
Explanation: e-Wallets are commonly used for in-store purchases, allowing users to make payments electronically using their mobile devices.