Q21. Which of the following is NOT a benefit of using UPI?
a) Instant money transfers
b) Integration with multiple bank accounts
c) Transaction fees for each transfer
d) Convenience of payment using mobile phones
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Correct Answer: c) Transaction fees for each transfer
Explanation: UPI (Unified Payment Interface) typically does not charge transaction fees for transfers, making it a cost-effective and convenient payment method.
Q22. How does an AEPS transaction typically authenticate the user?
a) Using a fingerprint
b) Through OTP
c) Using Aadhaar number and biometric data
d) Through a mobile number verification
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Correct Answer: c) Using Aadhaar number and biometric data
Explanation: AEPS (Aadhaar Enabled Payment System) uses Aadhaar number and biometric authentication to securely process transactions, ensuring that the user is correctly identified.
Q23. Which payment system is commonly used for paying bills using USSD codes?
a) IMPS
b) NEFT
c) AEPS
d) USSD
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Correct Answer: d) USSD
Explanation: USSD (Unstructured Supplementary Service Data) allows users to pay bills and perform other transactions using simple SMS codes, often without needing internet access.
Q24. What is the main feature of a debit card?
a) Allows borrowing money
b) Provides rewards points
c) Directly deducts money from the bank account
d) Can be used for online investments
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Correct Answer: c) Directly deducts money from the bank account
Explanation: A Debit Card deducts funds directly from the user’s bank account at the time of purchase, ensuring that spending does not exceed the available balance.
Q25. In which type of transaction does RTGS work best?
a) Large-value transactions
b) Small-value transactions
c) Domestic bill payments
d) International wire transfers
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Correct Answer: a) Large-value transactions
Explanation: RTGS (Real Time Gross Settlement) is most suitable for high-value transactions due to its real-time processing and immediate settlement features.
Q26. What is the primary use of the QR Code in financial transactions?
a) To encode transaction details
b) To verify user identity
c) To facilitate quick payment and scanning
d) To provide account balance
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Correct Answer: c) To facilitate quick payment and scanning
Explanation: QR Codes facilitate quick and convenient payments by allowing users to scan the code to instantly access payment information or complete transactions.
Q27. Which of the following is a feature of an e-Wallet?
a) Storing physical currency
b) Tracking physical assets
c) Managing and using digital payment methods
d) Providing offline financial services
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Correct Answer: c) Managing and using digital payment methods
Explanation: e-Wallets are digital platforms used to manage and utilize payment methods electronically, enhancing convenience and reducing the need for physical money.
Q28. What does IMPS stand for in financial services?
a) Immediate Payment System
b) Instant Money Payment Service
c) Immediate Payment Service
d) Instant Money Payment System
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Correct Answer: c) Immediate Payment Service
Explanation: IMPS (Immediate Payment Service) allows for immediate, real-time transactions, making it a fast and efficient method for transferring funds between accounts.
Q29. What is the primary function of online bill payment systems?
a) To make online shopping easier
b) To manage utility and service bills electronically
c) To store payment information securely
d) To track personal expenses
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Correct Answer: b) To manage utility and service bills electronically
Explanation: Online bill payment systems allow users to pay utility and service bills electronically, simplifying the payment process and avoiding late fees.
Q30. Which service helps in booking railway tickets online?
a) e-Hospital
b) Passport Services
c) Railway Reservation
d) UMANG App
Show Answer
Correct Answer: c) Railway Reservation
Explanation: Railway Reservation is an e-Governance service that allows users to book and manage railway tickets online, making the process more efficient and accessible.