Credit cards and debit cards- Multiple choice Questions

Total points 35/35

Chapter-6

1. Now -a- days the use of become a preferred mode of payment and has wide
acceptance among public, this known as:

a. Cash money
b. Plastic money
c. None of the above
d. Both of the above

2. In which card transactions by card holder accumulated over a period of time

generally a month and the total amount is charged/debited to the account of the
card holder?

a. Charge card
b. Credit card
c. Smart card
d. Member card

3. The charge cardholder is given about ----- days’ time to credit his account in
case there are insufficient funds in his account at the time of debit?

a. 10 to 25
b. 15 to 35
c. 20 to 40
d. 25 to 50

4. A card that is used repeatedly to borrow money or buy products and services
on credit is called as:

a. Credit limit
b. Credit analysis
c. Credit rating
d. Credit Card
5. Which of the following is as same as CHARGE CARD where the
transactions are charged to the account with the total value of the transactions
debited to the cardholder account once in a month?

a. Debit card
b. Smart card
c. Credit card
d. Member card

6. In the Credit card rues free credit period was up to ……..from the purchase
dates:

a. 15 to 30 days
b. 30 to 45 days
c. 45 to 60 days
d. 60 to 90 days

7. -------- is the person who has accepted the payment through the credit card for
services rendered or goods sold?

a. Merchant bank
b. Merchant
c. Card holder
d. Card issuing bank

8. The bank which pays the merchant for the transactions is called as:

a. Issue bank
b. Clearance bank
c. Acquiring bank /Merchant bank
d. None of the above

9. The merchant bank will claim the payment from the card issuing bank. The
bank is known as ----------.

a. Collecting bank
b. Transfer bank
c. Accepting bank
d. Clearance bank
10. Disadvantage to credit card holders:

a. Overspending ending in debt trap

b. Frauds due to loss or theft of card
c. Forged signatures
d. All of above

11. Credit Risk to the bank is higher form:

a. Credit card holders

b. Debit card holders
c. Both of the above
d. None of the above

12. In which of the following card, the amount of dues from the card holder for
each and every transaction is debited to card holder account as soon as each
transaction is notified to the issuer?

a. Credit Cards
b. Smart Cards
c. Debit Cards
d. Member Cards

13. Which card looks exactly like any other plastic card or an ATM card with an
integrated circuit Chip (IC Chip) installed which contains memory, a processor
and communicates with the external world through contacts on the surface of
the Card?

a. Smart Cards
b. Debit Cards
c. Credit Cards
d. Member Cards

14. Rupay card is a --------------------

a. Debit Card
b. Credit Card
c. Smart Card
d. Member Card
.15. One of the following statements is not true with respect to the credit cards.

a. The card issuing bank would not be responsible for fulfilment of KYC
requirements, where agents solicit business.
b. While issuing cards, the terms and condition for issue and usage of a
credit card should be mentioned in clear and simple language.
c. Card issuers should quote annualized percentage rates(APR) on card
products
d. The card issuing bank/NBFC should not unitarily upgrade credit cards
and enhance credit limits. Prior consent of the borrower should invariably
be obtained whenever there are any changes in terms and conditions.

16. The difference between debit and credit card is:

a. Your account get debited immediately on using a debit or ATM card

b. Your accounts gets debited immediately on using a debit or ATM Card
c. Your account does not get debited immediately on using a debit card
d. None of the above

17. RuPay card has been launched by:

a. Reserve Bank of India (RBI)

b. National Payment Corporation of India (NPCI)
c. State Bank of India (SBI)
d. Punjab National Bank (PNB)

18. Which of the following statement is not correct about Contact –less Debit
and Credit cards?

a. These cards work on near-field communication technology, which

employs radio transmission to ascertain contact when the cards are tapped
or waved near a terminal
b. These cards cannot be used in the traditional way-by swiping or dipping.
c. This card increases ease and convenience of transactions.
d. These cards are very secure because unlike the cards in use now, these do
not have to be handed over to the merchant.

19. The prescribed time-limit for resolution of customer ATM related

complaints is …………..working days from the date of receipt of such
complaint.
 a. 2
b. 7
c. 15
d. 30

20. If the ATM related complaint is not resolved within 7 working days of
receipt of complaint, the compensation to be paid to customer is Rs…….per day
by the issuing bank.

a. 50
b. 100
c. 150
d. 200

21. Which of the following steps is not required by the user for withdrawing
money from ATM?

a. Inserting ATM card in the card slot

b. Entering PIN
c. Entering Account Number
d. Entering Account Type (Savings or Current)

22. What are the facilities available to the customers through ATM?

a. Cash withdrawal subject to a predetermined limit per day

b. Cash deposit
c. Balance Enquiry
d. Details of certain number of transactions
e. All of the above

23. ATM cards are issued to a person who maintains any of the following
accounts with the bank.

a. Savings Bank Accounts

b. Current Accounts
c. Fixed Deposits
d. Loan or cash credit accounts
e. Both(a) or (b)

24. What are the various means of Electronic Payment Systems?

a. Credit Card
 b. ATM Card/Debit Card
c. Smart Card
d. All of the above

25. Which one is also known as Plastic Money?

a. Credit Card
b. Debit Card
c. Paper Cash
d. Both(a) and (b) above

26. Which of the following card is used exclusively by members of a club or a

chain of hotels?

a. Charge Card
b. Credit Card
c. Member Card
d. Smart Card

27. Which of the following cards have a photo of the holder printed thereon
which also serves the purpose of identification in cash of need?

a. Credit Card
b. Debit Card
c. Smart Card
d. ATM Card

28. Which of the following statement is not true in respect of SMART CARD?

a. These cards have an integrated Circuit(IC Chip) installed which contains

memory and processor
b. It cannot communicate with the external world through contacts on the
surface of the card
c. The card can interact with variety of equipments
d. Some smart cards have a photo of the holder printed on the card

29. Contact-less transactions below Rs………can be processed without PIN as

per RBI guidelines.

a. 10000/-
b. 20000/-
c. 5000/-
 d. 10000/-

30. Which is true about Micro-ATMs?

a. These are biometric authentication enabled and also PIN based hand-held
device and is based on Mobile phone connection
b. These are generally used by Business Correspondents to provide financial
services to the unbanked population
c. Deposit, withdrawal, Fund transfer and balance enquiry are the
transactions types supported by Micro-ATMs.
d. All of the above

31. Business Correspondent providing door-step services to customers is also

known as?

a. Bank Mitra
b. Kissan Mitra
c. Bank Sewak
d. Bank Recovery Agent

32. Mahindra Club issues cards to its employees and members to be used at
their branches all over the world. The card is known as:

a. Smart Card
b. Credit Card
c. Member Card
d. ATM Card

33. The cards which work on near-field communication(NFC) technology

which employs radio transmission to ascertain contact on tapping or waving
near a terminal are known as:

a. Smart Card
b. Contact-less and Credit card
c. Member Card
d. None of the above

34. To provide financial services to the unbanked population in rural/semi urban

centers, the device used by Bank Mitra (Business Correspondent) is known as:

a. Micro-ATM
b. Mobile Phone
 c. Telephone
d. None of the above

35. CVV, a three digit number, stands for

a. Credit Verification Value

b. Credit Value Verification
c. Card Verification Value
d. Card Value verification