Banking – Multiple Choice Questions (MCQs)

1. 37. What is 'Credit Card'?

   • A. A card that allows you to withdraw money directly from your bank account
   • B. A card that provides a line of credit allowing you to borrow money up to a certain limit
   • C. A pre-paid card
   • D. A card linked to government benefits

2. 38. What is 'Mobile Banking'?

   • A. Banking transactions conducted through mobile phones
   • B. Banking services offered at mobile branches
   • C. Banking for people with mobile jobs
   • D. A type of digital currency

3. 39. What is 'Internet Banking'?

   • A. Banking transactions conducted online through a website
   • B. Banking services offered at internet cafes
   • C. Banking for internet service providers
   • D. A secure internet protocol for financial transactions

4. 40. What is 'Core Banking Solution (CBS)'?

   • A. A centralized online real-time environment for banking operations
   • B. A system for managing cash transactions
   • C. A software for generating bank statements
   • D. A network of ATMs

5. 41. What is 'White Label ATM'?

   • A. ATMs owned and operated by banks
   • B. ATMs owned and operated by non-bank entities
   • C. ATMs located in government offices
   • D. ATMs that dispense only white-colored currency

6. 42. What is 'Brown Label ATM'?

   • A. ATMs where the hardware and software are owned by a non-bank entity
   • B. but the cash and connectivity are provided by a bank
   • C. ATMs fully owned and operated by non-bank entities
   • D. ATMs located in shopping malls

7. 43. What is 'Universal Banking'?

   • A. A system where banks offer a wide range of financial services
   • B. including commercial banking
   • C. investment banking
   • D. and insurance

8. 44. What is 'Narrow Banking'?

   • A. A type of banking that focuses only on accepting deposits
   • B. A type of banking that restricts lending to only government securities
   • C. A type of banking that provides a limited range of services
   • D. A type of banking with very high interest rates

9. 45. What is 'Islamic Banking'?

   • A. A system of banking that prohibits the charging of interest
   • B. A system of banking only for Muslim customers
   • C. A system of banking with very high interest rates
   • D. A system of banking that invests only in Islamic countries

10. 46. What is 'Micro Insurance'?

    • A. Insurance products designed for low-income individuals
    • B. Insurance for very small businesses
    • C. Insurance policies with very high premiums
    • D. Insurance offered only by microfinance institutions

11. 47. What is 'Financial Literacy'?

    • A. Knowledge and understanding of financial concepts and risks
    • B. Ability to read and write financial statements
    • C. Skills in stock market trading
    • D. Awareness of government financial schemes only

12. 48. What is 'Money Laundering'?

    • A. The process of concealing the origin of illegally obtained money
    • B. The process of printing counterfeit currency
    • C. The process of hoarding large amounts of cash
    • D. The process of investing legally earned money