Financial Institutions, Digital Banking, Payment Systems - One Line Questions
1.
What is a 'Smart Card' in the context of financial services? —
A card embedded with a microchip for storing and processing information
2.
What is a 'Digital Signature'? —
A cryptographic method to verify the authenticity and integrity of digital data
3.
What is a 'Payment Gateway' in digital banking? —
A service that authorizes credit/debit card payments for e-commerce
4.
What is a 'Sweep Account'? —
An account that automatically transfers excess funds to a higher-yield investment
5.
Which of the following is a digital wallet service? —
Paytm
6.
What does 'AML' stand for in financial regulations? —
Anti-Money Laundering
7.
Which of the following is a feature of 'Open Banking'? —
Third-party providers can access customer financial data with consent
8.
Which type of financial institution primarily focuses on providing insurance products? —
Insurance Company
9.
Which financial institution typically offers services like underwriting, mergers, and acquisitions advisory? —
Investment Bank
10.
Which type of financial institution is known for providing services like mutual funds, pensions, and annuities? —
Asset Management Company
11.
Which type of financial institution is focused on providing capital for startups and early-stage companies? —
Venture Capital Firm
12.
What is the main difference between a commercial bank and an investment bank? —
Commercial banks accept deposits, while investment banks deal with securities
13.
Which term refers to the process of converting physical currency into digital form? —
Digitalization
14.
What does 'e-KYC' facilitate in digital banking? —
Electronic verification of customer identity
15.
What does 'IMPS' stand for? —
Immediate Payment Service
16.
Which payment system is often used for bulk or repetitive transactions like salary payments? —
NEFT
17.
Which of the following is a risk associated with digital banking? —
Cybersecurity threats and data breaches
18.
What is the 'Know Your Customer' (KYC) norm primarily aimed at? —
Preventing money laundering and terrorist financing
19.
Which of the following is a type of financial institution that accepts deposits and makes loans? —
Commercial Bank
20.
Which digital banking service allows customers to check account balances and transfer funds using their mobile phone? —
Mobile Banking
21.
Which of the following is a characteristic of a universal bank? —
It offers a wide range of financial services, including commercial and investment banking
22.
Which of the following is a function of the Reserve Bank of India? —
Regulating the issue of bank notes
23.
What does 'NEFT' stand for in the context of digital banking? —
National Electronic Fund Transfer
24.
What is a 'Virtual Payment Address' (VPA) commonly associated with? —
UPI
25.
Which payment system is known for its speed and is used for high-value transactions? —
RTGS
26.
Which digital payment method uses a QR code for transaction initiation? —
UPI
27.
Which of the following is a characteristic of a co-operative bank? —
Operates on the principle of mutual help and service to members
28.
Which of these is a type of digital payment instrument? —
Debit Card
29.
Which regulatory body oversees the insurance sector in India? —
IRDAI
30.
What does 'RTGS' stand for? —
Real-Time Gross Settlement
31.
What is 'Tokenization' in the context of digital payments? —
Replacing sensitive card details with a unique token
32.
Which payment system allows for real-time fund transfer between banks 24/7? —
IMPS
33.
Which organization is responsible for licensing and regulating payment systems in India? —
RBI
34.
Which entity regulates payment systems in India? —
Reserve Bank of India (RBI)
35.
Which institution is responsible for issuing currency in India? —
Reserve Bank of India
36.
Which of the following is an example of a Non-Banking Financial Company (NBFC)? —
Bajaj Finance Ltd.
37.
Which Indian financial institution is known as the 'Banker's Bank'? —
Reserve Bank of India
38.
Which Indian payment system was developed by the National Payments Corporation of India (NPCI)? —
UPI
39.
What is the primary purpose of a 'Digital Signature Certificate' (DSC)? —
To authenticate and secure electronic documents and transactions
40.
What is the main purpose of a credit rating agency? —
To assess the creditworthiness of borrowers and issue credit ratings
41.
What is the role of a 'Financial Ombudsman'? —
To resolve customer complaints against banks and financial institutions
42.
What is the primary function of a 'Clearing House' in a payment system? —
To facilitate the settlement of transactions between financial institutions
43.
What is the primary objective of the 'Pradhan Mantri Jan Dhan Yojana' (PMJDY)? —
To promote financial inclusion by ensuring access to banking, insurance, and pension services
44.
What is the primary role of a central bank in a country's financial system? —
To regulate the money supply and oversee the banking system
45.
What is the function of a 'Lender of Last Resort' performed by the central bank? —
To provide emergency liquidity to banks facing financial distress
46.
What is the primary function of a payment bank? —
To accept deposits up to a certain limit and offer payment services
47.
What is the primary role of a Development Financial Institution (DFI)? —
To finance long-term infrastructure and industrial development projects
48.
What is the primary function of a 'Currency Chest' in India? —
To hold and distribute currency notes and coins on behalf of the RBI
49.
What is the purpose of a 'Call Money Market'? —
To provide short-term funds (usually overnight) for banks to meet their reserve requirements
50.
What does 'UPI' stand for? —
Unified Payment Interface