What is a credit card primarily used for?

• Purchase of goods
• Cash withdrawals
• Booking flights
• Paying taxes
• None of the above

How many parties are typically involved in credit card transactions?

• 2
• 3
• 4
• 5
• 6

Who are the cardholders in a credit card transaction?

• Customers
• Card issuers
• Merchants
• Merchant acquirers
• Credit card associations

What do credit card associations provide for their members?

• Licensing to issue credit cards
• Processing credit card transactions
• Settlement services
• All of the above
• None of the above

What is the benefit of credit cards to cardholders?

• Interest-free credit period
• Cash withdrawals through ATMs
• Proof of purchase
• All of the above
• None of the above

How do credit cards benefit merchant establishments?

• Increased sales due to purchasing power
• Advertising and promotional support
• Assured and immediate settlement
• All of the above
• None of the above

What does the scope and potential of credit card business offer to banks?

• Better profitability
• Establishment of banking relationships
• Additional facilities for existing clients
• All of the above
• None of the above

What are the disadvantages to credit card holders?

• Over-spending
• Fraudulent withdrawals
• Falling into a debt trap
• All of the above
• None of the above

When did RBI issue Master Directions on issuance and conduct of credit cards and debit cards?

• 21st April 2022
• 15th January 2021
• 1st March 2023
• 10th July 2022
• None of the above

What is the responsibility of banks regarding KYC requirements for credit card applicants?

• Agents will handle KYC requirements
• Banks are not responsible for KYC
• Banks should fulfill all KYC requirements
• KYC is not required for credit card applications
• None of the above