Here are 30 multiple-choice questions (MCQs) based on the provided document, with answers in

bold:

1. What is the primary purpose of digital payments?

(a) To encourage paper transactions
(b) To simplify financial transactions and promote transparency
(c) To eliminate all forms of currency
(d) To increase banking charges
Answer: (b) To simplify financial transactions and promote transparency

2. Which organization in India is responsible for retail payments and settlement systems?
(a) RBI
(b) NPCI
(c) SEBI
(d) IRDA
Answer: (b) NPCI

3. Which of the following is NOT a type of digital payment?

(a) UPI
(b) IMPS
(c) RuPay
(d) Manual Cheque
Answer: (d) Manual Cheque

4. What is the key benefit of digital payments for businesses?

(a) Increased paperwork
(b) Lower transaction costs
(c) Reduced transparency
(d) Slow processing time
Answer: (b) Lower transaction costs

5. What is the primary advantage of using UPI for transactions?

(a) It requires an internet connection at all times
(b) It allows instant fund transfers between bank accounts
(c) It is only available during banking hours
(d) It requires complex authentication
Answer: (b) It allows instant fund transfers between bank accounts

6. Which factor is essential for using Aadhaar Enabled Payment Service (AEPS)?
(a) Internet connection
(b) Smartphone
(c) Aadhaar number linked to a bank account
(d) Physical debit card
Answer: (c) Aadhaar number linked to a bank account

7. What is the primary objective of e-RUPI?

(a) Promote paper-based transactions
(b) Ensure targeted and cashless digital transactions
(c) Offer flexible credit options
(d) Facilitate only international payments
Answer: (b) Ensure targeted and cashless digital transactions
8. Which mobile payment service does not require internet connectivity?
(a) UPI
(b) USSD banking
(c) BHIM app
(d) Mobile Wallet
Answer: (b) USSD banking

9. Which type of card combines features of both debit and credit cards?
(a) Smart Card
(b) Visa Card
(c) MasterCard
(d) Prepaid Card
Answer: (a) Smart Card

10. What is a major disadvantage of e-business?

(a) 24x7 availability
(b) High start-up costs
(c) Instantaneous transactions
(d) Wide customer reach
Answer: (b) High start-up costs

11. What does RegTech focus on?

(a) Regulatory compliance through technology
(b) Traditional banking operations
(c) Marketing strategies
(d) Employee training programs
Answer: (a) Regulatory compliance through technology

12. What is a key characteristic of IoT in finance?

(a) Manual operations
(b) Data-driven insights and automation
(c) High dependence on paperwork
(d) Limited access to financial institutions
Answer: (b) Data-driven insights and automation

13. What does IMPS stand for?

(a) Instant Mobile Payment System
(b) Immediate Payment Service
(c) International Money Processing System
(d) India’s Mobile Payment Solution
Answer: (b) Immediate Payment Service

14. Which digital payment method allows single-click authentication?

(a) Credit Cards
(b) Debit Cards
(c) UPI
(d) IMPS
Answer: (c) UPI

15. Which of the following is an advantage of mobile computing?

(a) Limited accessibility
 (b) Restricted working hours
(c) Increased efficiency and flexibility
(d) Higher operational costs
Answer: (c) Increased efficiency and flexibility

16. Which security measure is used in UPI transactions?

(a) Two-factor authentication
(b) Email verification
(c) Captcha codes
(d) SMS alerts
Answer: (a) Two-factor authentication

17. What is the primary goal of fraud prevention using IoT in finance?
(a) Increase customer complaints
(b) Enhance regulatory requirements
(c) Detect suspicious transactions in real time
(d) Reduce compliance measures
Answer: (c) Detect suspicious transactions in real time

18. What is the benefit of digital payment over traditional cash payment?
(a) Requires physical presence
(b) Higher chances of fraud
(c) Easier tracking and record-keeping
(d) Time-consuming
Answer: (c) Easier tracking and record-keeping

19. Which of the following is an example of a mobile wallet?

(a) BHIM
(b) Paytm
(c) RuPay
(d) IMPS
Answer: (b) Paytm

20. What does a QR code facilitate in digital payments?

(a) Digital identity verification
(b) Faster processing of transactions
(c) Slower transaction speed
(d) Only works with debit cards
Answer: (b) Faster processing of transactions

Let me know if you need more questions!

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You said:

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Here are more multiple-choice questions (MCQs) with answers in bold:

21. What is the maximum transaction limit for a single UPI transaction?
(a) ₹10,000
(b) ₹50,000
(c) ₹1,00,000
(d) ₹5,00,000
Answer: (c) ₹1,00,000

22. What is the major benefit of RuPay cards over international card networks?
(a) Higher transaction fees
(b) Global acceptance
(c) Lower processing costs for Indian banks
(d) No PIN requirement
Answer: (c) Lower processing costs for Indian banks

23. Which of the following digital payment methods is government-backed and widely used in
India?
(a) Apple Pay
(b) Google Pay
(c) BHIM UPI
(d) PayPal
Answer: (c) BHIM UPI

24. Which of the following is a disadvantage of mobile wallets?

(a) Easy to carry
(b) Requires internet connectivity
(c) Provides instant payments
(d) Secure authentication
Answer: (b) Requires internet connectivity

25. What does RegTech aim to achieve in financial institutions?

(a) Lower compliance costs
(b) Increased paperwork
(c) Slower transaction processing
(d) Reduced transparency
Answer: (a) Lower compliance costs

26. Which technology is transforming financial data analysis through high-speed processing?
(a) Blockchain
(b) Artificial Intelligence
(c) Mobile Computing
(d) Quantum Computing
Answer: (d) Quantum Computing

27. Which organization launched the BHIM app in India?

(a) SEBI
(b) NPCI
(c) IRDA
(d) TRAI
Answer: (b) NPCI
28. What feature of IoT allows banks to monitor customer spending patterns?
(a) Manual input systems
(b) Smart sensors and data analysis
(c) Offline transactions
(d) Random sampling
Answer: (b) Smart sensors and data analysis

29. The term "FinTech" is a combination of which two words?

(a) Finance and Technology
(b) Financial and Tactics
(c) Finance and Trade
(d) Financial and Techniques
Answer: (a) Finance and Technology

30. Which of the following services is NOT offered by Aadhaar Enabled Payment System (AEPS)?
(a) Balance inquiry
(b) Cash withdrawal
(c) Loan approval
(d) Fund transfer
Answer: (c) Loan approval

31. What technology is used to protect digital payments from unauthorized access?
(a) Firewalls
(b) Encryption
(c) Antivirus software
(d) None of the above
Answer: (b) Encryption

32. Which of the following is an example of biometric authentication in digital payments?

(a) OTP verification
(b) PIN entry
(c) Fingerprint scanning
(d) Security questions
Answer: (c) Fingerprint scanning

33. Which component is NOT essential for mobile computing?

(a) Mobile hardware
(b) Mobile software
(c) Mobile communication
(d) Stationary workstation
Answer: (d) Stationary workstation

34. What does UPI123Pay enable?

(a) Digital transactions using feature phones
(b) Cashless transactions in rural areas
(c) Cryptocurrency transactions
(d) Mobile banking without a PIN
Answer: (a) Digital transactions using feature phones

35. What is the main advantage of e-business for customers?

(a) Reduced product quality
 (b) Convenient and accessible shopping
(c) Limited payment options
(d) Increased travel costs
Answer: (b) Convenient and accessible shopping

36. What does the term "Green Computing" in digital payments refer to?
(a) Using digital payments to reduce paper usage
(b) Green-colored banknotes
(c) Eco-friendly payment methods
(d) Recycling of credit cards
Answer: (a) Using digital payments to reduce paper usage

37. What feature of mobile computing allows users to work remotely?

(a) Portability
(b) Large storage capacity
(c) High power consumption
(d) Limited connectivity
Answer: (a) Portability

38. Which payment system allows customers to make payments without an internet connection?
(a) UPI
(b) IMPS
(c) USSD
(d) Paytm Wallet
Answer: (c) USSD

39. What is the major benefit of blockchain technology in financial services?

(a) Centralized control
(b) Data immutability and security
(c) High maintenance cost
(d) Faster depreciation
Answer: (b) Data immutability and security

40. Which digital payment method provides an e-voucher for specific purposes?
(a) Credit Card
(b) e-RUPI
(c) Debit Card
(d) Internet Banking
Answer: (b) e-RUPI

Let me know if you need additional questions!

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ChatGPT said:

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Here are more multiple-choice questions (MCQs) with answers in bold:

41. Which of the following payment methods is commonly used for international transactions?
(a) UPI
(b) NEFT
(c) SWIFT
(d) AEPS
Answer: (c) SWIFT

42. What is the primary goal of a cashless economy?

(a) Encourage cash transactions
(b) Reduce dependency on physical currency
(c) Increase manual record-keeping
(d) Eliminate banking services
Answer: (b) Reduce dependency on physical currency

43. What does NPCI stand for?

(a) National Payment Collection Institute
(b) National Payments Corporation of India
(c) National Processing Center of India
(d) None of the above
Answer: (b) National Payments Corporation of India

44. Which mobile app is officially developed by the Government of India for digital payments?
(a) PhonePe
(b) Paytm
(c) BHIM
(d) Google Pay
Answer: (c) BHIM

45. What is a key feature of QR code payments?

(a) Requires physical swiping of a card
(b) Instant payment processing via scanning
(c) Only works in offline mode
(d) Requires an OTP for every transaction
Answer: (b) Instant payment processing via scanning

46. Which entity regulates digital payments in India?

(a) TRAI
(b) NPCI
(c) RBI
(d) NITI Aayog
Answer: (c) RBI

47. What does the term "Two-Factor Authentication" mean in digital payments?
(a) Using two passwords for one transaction
(b) Verifying the user through two different authentication methods
(c) Two separate bank accounts
(d) Making two payments simultaneously
Answer: (b) Verifying the user through two different authentication methods

48. What is the main feature of contactless payments?

(a) Requires physical PIN entry
 (b) Uses NFC technology to complete transactions
(c) Only works with high-value transactions
(d) Involves manual approval
Answer: (b) Uses NFC technology to complete transactions

49. Which of the following digital payment systems is most commonly used for small-value
transactions?
(a) IMPS
(b) UPI
(c) RTGS
(d) SWIFT
Answer: (b) UPI

50. Which digital payment mode is primarily used for large transactions above ₹2 lakh in India?
(a) NEFT
(b) RTGS
(c) UPI
(d) Mobile Wallets
Answer: (b) RTGS

51. What is the main benefit of e-commerce over traditional commerce?

(a) Wider market reach
(b) High operational costs
(c) Time-consuming processes
(d) Manual transaction handling
Answer: (a) Wider market reach

52. What does PCI-DSS compliance relate to in digital payments?

(a) Data security standards for payment card transactions
(b) Payment of tax duties
(c) Insurance coverage for online businesses
(d) Rules for mobile recharge services
Answer: (a) Data security standards for payment card transactions

53. Which payment system allows real-time gross settlement of high-value transactions?
(a) NEFT
(b) RTGS
(c) IMPS
(d) USSD
Answer: (b) RTGS

54. The introduction of digital payments in rural areas helps to:

(a) Increase cash transactions
(b) Promote financial inclusion
(c) Reduce banking operations
(d) Eliminate banking services
Answer: (b) Promote financial inclusion

55. Which of the following is a key challenge in digital payments?

(a) Instant accessibility
(b) Cybersecurity threats
 (c) Convenience for users
(d) Reduction of paper usage
Answer: (b) Cybersecurity threats

56. What does the "KYC" process ensure in digital banking?

(a) Customer identity verification
(b) Transaction speed improvement
(c) High-speed internet usage
(d) Business tax filing
Answer: (a) Customer identity verification

57. What is the full form of NEFT?

(a) National Electronic Funds Transfer
(b) Network Encrypted Financial Transactions
(c) National E-Payment Financial Transfer
(d) None of the above
Answer: (a) National Electronic Funds Transfer

58. In which year was UPI launched in India?

(a) 2014
(b) 2016
(c) 2018
(d) 2020
Answer: (b) 2016

59. Which of the following best describes e-RUPI?

(a) A digital currency
(b) A contactless prepaid voucher system
(c) A credit card scheme
(d) A UPI-linked savings account
Answer: (b) A contactless prepaid voucher system

60. Which technology is commonly used for tokenization in digital payments?

(a) Artificial Intelligence
(b) Blockchain
(c) Encryption algorithms
(d) Digital signatures
Answer: (b) Blockchain