Q.1 Which of the following is an example of a cashless mode of payment?
Currency notes
Cheque
Barter system
Commodity money
Explanation - A cheque is a written order directing a bank to pay a specific amount from a person's account to another person, making it a cashless payment method.
Correct answer is: Cheque
Q.2 Which payment method allows direct transfer from one bank account to another electronically?
NEFT
Demand Draft
Cash
Postal Order
Explanation - NEFT (National Electronic Funds Transfer) is an electronic payment system that allows individuals to transfer money directly from one bank account to another.
Correct answer is: NEFT
Q.3 Which of the following is an example of a card-based payment?
Cheque
Credit Card
Cash
Postal Order
Explanation - A credit card allows the cardholder to borrow funds from the issuing bank to make payments, making it a card-based payment method.
Correct answer is: Credit Card
Q.4 IMPS stands for:
Immediate Payment Service
Instant Money Processing System
International Money Payment Service
Integrated Money Payment System
Explanation - IMPS (Immediate Payment Service) allows instant, 24x7 interbank electronic fund transfer through mobile phones or internet banking.
Correct answer is: Immediate Payment Service
Q.5 A demand draft is issued by:
Bank
Post Office
Central Government
RBI only
Explanation - A demand draft is a prepaid negotiable instrument issued by a bank on request of the payer, payable to a third party.
Correct answer is: Bank
Q.6 Which of the following is considered a digital wallet?
UPI
Google Pay
Cheque
Cash
Explanation - Google Pay is an example of a digital wallet that stores funds digitally and allows users to make payments electronically.
Correct answer is: Google Pay
Q.7 RTGS is primarily used for:
Small value transactions
Large value transactions
Cash withdrawals
Online shopping
Explanation - RTGS (Real Time Gross Settlement) is used for high-value transactions where money is transferred in real time and on a gross basis.
Correct answer is: Large value transactions
Q.8 Which of the following is a person-to-person mobile payment system?
NEFT
IMPS
UPI
Demand Draft
Explanation - UPI (Unified Payments Interface) allows person-to-person instant money transfer using mobile applications linked to bank accounts.
Correct answer is: UPI
Q.9 Which of the following is a prepaid payment instrument?
Debit Card
Credit Card
Gift Card
Cheque
Explanation - A gift card is a prepaid instrument that can be used to make payments until the balance is exhausted.
Correct answer is: Gift Card
Q.10 Which mode of payment does not require internet access?
NEFT
IMPS
Cash
UPI
Explanation - Cash transactions involve physical currency and do not require internet or electronic systems.
Correct answer is: Cash
Q.11 Which of the following is considered a contactless payment method?
Debit card swipe
UPI transfer
NFC-enabled card payment
Cheque
Explanation - NFC-enabled cards use near-field communication to allow users to make contactless payments without physically swiping or inserting the card.
Correct answer is: NFC-enabled card payment
Q.12 Which of the following is NOT a mode of electronic payment?
UPI
IMPS
Cheque
Cash
Explanation - Cash is a physical mode of payment and is not considered an electronic payment method.
Correct answer is: Cash
Q.13 Which organization regulates payment systems in India?
RBI
SEBI
IRDAI
NABARD
Explanation - The Reserve Bank of India (RBI) regulates all payment and settlement systems in India, including NEFT, RTGS, and UPI.
Correct answer is: RBI
Q.14 A post-dated cheque is one that:
Can be cashed immediately
Has a future date
Is issued for government transactions only
Is always electronic
Explanation - A post-dated cheque is written with a date in the future, and it can be cashed only on or after that date.
Correct answer is: Has a future date
Q.15 Which of the following ensures instant fund transfer even on holidays?
NEFT
RTGS
IMPS
Demand Draft
Explanation - IMPS works 24x7, including holidays, and allows instant fund transfers between banks.
Correct answer is: IMPS
Q.16 Which is a risk-free mode of payment for the payer?
Cash
Cheque
Credit Card
UPI
Explanation - UPI payments are generally secure and require authentication, reducing risk for the payer compared to cash or cheque.
Correct answer is: UPI
Q.17 Which of the following is considered a delayed payment method?
Cash
Credit Card
Debit Card
UPI
Explanation - Credit cards allow users to make payments immediately, but the actual debit from the user's bank account happens later, making it a delayed payment method.
Correct answer is: Credit Card
Q.18 Which mode of payment is most suitable for e-commerce transactions?
Cash on Delivery
Cheque
UPI
Demand Draft
Explanation - UPI is convenient, instant, and widely accepted for e-commerce transactions, making it the most suitable electronic mode of payment.
Correct answer is: UPI
Q.19 Which of the following is used for cross-border electronic payments?
SWIFT
IMPS
NEFT
RTGS
Explanation - SWIFT (Society for Worldwide Interbank Financial Telecommunication) is used for secure international or cross-border electronic fund transfers.
Correct answer is: SWIFT
Q.20 Which type of card requires funds to be available before making a payment?
Debit Card
Credit Card
Prepaid Card
Gift Card
Explanation - A debit card draws funds directly from the cardholder's bank account, so the account must have sufficient balance at the time of payment.
Correct answer is: Debit Card
Q.21 Which of the following payment methods is non-reversible once completed?
Credit Card
UPI
Cash
NEFT
Explanation - NEFT transactions, once processed and credited to the beneficiary's account, cannot be reversed, making it non-reversible.
Correct answer is: NEFT
Q.22 Which payment method allows splitting a single payment across multiple accounts?
UPI
Cheque
RTGS
IMPS
Explanation - UPI supports advanced features like splitting payments among multiple recipients from a single transaction request.
Correct answer is: UPI
Q.23 Which of the following is a major advantage of electronic payments?
Faster transactions
Physical money handling
Requires in-person presence
Subject to manual errors
Explanation - Electronic payments allow instant or quick transfer of funds, reducing time compared to traditional cash or cheque transactions.
Correct answer is: Faster transactions
Q.24 Which of the following instruments is considered safest for high-value offline payments?
Cash
Cheque
Demand Draft
UPI
Explanation - Demand drafts are prepaid instruments issued by banks and are considered safe for large offline transactions.
Correct answer is: Demand Draft
Q.25 Which of the following can be used for recurring bill payments automatically?
Standing Instructions
Cash
Cheque
Demand Draft
Explanation - Standing instructions allow banks to automatically debit a fixed amount from a customer's account at regular intervals for recurring payments like utility bills.
Correct answer is: Standing Instructions