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WorksheetsPPB Module B Unit 14
Total questions: 52
Worksheet time: 39mins
Name
Class
Date
1.
What is a credit card primarily used for?
a)
Purchase of goods
b)
Cash withdrawals
c)
Booking flights
d)
Paying taxes
e)
None of the above
2.
How many parties are typically involved in credit card transactions?
a)
2
b)
3
c)
4
d)
5
e)
6
3.
Who are the cardholders in a credit card transaction?
a)
Customers
b)
Card issuers
c)
Merchants
d)
Merchant acquirers
e)
Credit card associations
4.
What do credit card associations provide for their members?
a)
Licensing to issue credit cards
b)
Processing credit card transactions
c)
Settlement services
d)
All of the above
e)
None of the above
5.
What is the benefit of credit cards to cardholders?
a)
Interest-free credit period
b)
Cash withdrawals through ATMs
c)
Proof of purchase
d)
All of the above
e)
None of the above
6.
How do credit cards benefit merchant establishments?
a)
Increased sales due to purchasing power
b)
Advertising and promotional support
c)
Assured and immediate settlement
d)
All of the above
e)
None of the above
7.
What does the scope and potential of credit card business offer to banks?
a)
Better profitability
b)
Establishment of banking relationships
c)
Additional facilities for existing clients
d)
All of the above
e)
None of the above
8.
What are the disadvantages to credit card holders?
a)
Over-spending
b)
Fraudulent withdrawals
c)
Falling into a debt trap
d)
All of the above
e)
None of the above
9.
When did RBI issue Master Directions on issuance and conduct of credit cards and debit cards?
a)
21st April 2022
b)
15th January 2021
c)
1st March 2023
d)
10th July 2022
e)
None of the above
10.
What is the responsibility of banks regarding KYC requirements for credit card applicants?
a)
Agents will handle KYC requirements
b)
Banks are not responsible for KYC
c)
Banks should fulfill all KYC requirements
d)
KYC is not required for credit card applications
e)
None of the above
11.
What does tokenisation refer to in credit card transactions?
a)
Replacement of actual card details with an alternate code
b)
Sharing card details with the merchant
c)
Protecting card details from tokenization
d)
None of the above
e)
None of the above
12.
What type of home loans are extended to both resident Indians and NRIs?
a)
Housing plot purchase
b)
House or flat construction
c)
Repairs and renovation of a house
d)
All of the above
e)
None of the above
13.
What factors do lenders consider when deciding the quantum of home loan?
a)
Gross monthly income
b)
Net monthly income
c)
Cost of the house
d)
All of the above
e)
None of the above
14.
What type of security is typically taken for home loans?
a)
Collateral on other assets
b)
Mortgage on the purchased property
c)
Guarantor's assets
d)
None of the above
e)
None of the above
15.
What is the maximum repayment period for home loans?
a)
10 years
b)
20 years
c)
30 years
d)
40 years
e)
None of the above
16.
What does RBI instruct banks regarding foreclosure charges on home loans with floating interest rates?
a)
Banks should charge foreclosure charges
b)
Banks should not charge foreclosure charges
c)
Banks should charge pre-payment penalties
d)
Banks should not charge pre-payment penalties
e)
None of the above
17.
Who is the target group for personal loans?
a)
Students
b)
Permanent employees
c)
Retirees
d)
Business owners
e)
None of the above
18.
What is the typical purpose of personal loans?
a)
Purchasing a car
b)
Financing education
c)
Medical expenses
d)
All of the above
e)
None of the above
19.
What is the minimum service/experience requirement for personal loan applicants?
a)
1 year
b)
2 years
c)
3 years
d)
5 years
e)
None of the above
20.
What type of security may be required for personal loans?
a)
Collateral assets
b)
Third-party guarantee
c)
Co-signer
d)
All of the above
e)
None of the above
21.
What types of consumer goods are typically purchased using consumer loans?
a)
Electronics and appliances
b)
Cars and motorcycles
c)
Furniture and home decor
d)
All of the above
e)
None of the above
22.
What is the margin requirement for consumer loans?
a)
0.05
b)
0.1
c)
0.15
d)
0.2
e)
None of the above
23.
How long is the typical repayment period for consumer loans?
a)
1 year
b)
2 years
c)
3 years
d)
5 years
e)
None of the above
24.
What documents are required for obtaining a consumer loan?
a)
Salary certificate
b)
Income tax returns
c)
Quotation from a dealer
d)
All of the above
e)
None of the above
25.
What are the eligible purposes for acquiring a personal loan?
a)
Buying a car
b)
Financing a vacation
c)
Paying medical bills
d)
All of the above
e)
None of the above
26.
What does "EMV" stand for in the context of credit cards?
a)
Electronic Money Verification
b)
Embedded Microchip Verification
c)
Europay Mastercard Visa
d)
Enhanced Mobile Verification
e)
None of the above
27.
What is the primary security requirement for consumer loans?
a)
Collateral assets
b)
Third-party guarantee
c)
Pledge of consumer goods
d)
None of the above
e)
None of the above
28.
Which types of consumer durables can be purchased using consumer loans?
a)
Televisions and refrigerators
b)
Washing machines and laptops
c)
Smartphones and jewelry
d)
All of the above
e)
None of the above
29.
How do banks determine the eligible loan amount for consumer loans?
a)
Based on the applicant's favorite color
b)
Based on the applicant's number of social media followers
c)
Based on the cost of the article to be purchased
d)
Based on the applicant's height and weight
e)
None of the above
30.
What document is typically required for a home loan application?
a)
Birth certificate
b)
Marriage certificate
c)
Valuation report from the bank's approved engineer
d)
All of the above
e)
None of the above
31.
What is the purpose of obtaining a No Encumbrance Certificate (NIL EC) for home loans?
a)
To check the borrower's credit history
b)
To confirm the borrower's identity
c)
To verify the absence of encumbrances on the property
d)
All of the above
e)
None of the above
32.
What type of interest rates can banks charge on home loans?
a)
Fixed rate
b)
Variable rate
c)
Both fixed and variable rates
d)
None of the above
e)
None of the above
33.
How do banks ensure that housing projects are completed before disbursal of loans?
a)
Banks conduct regular site visits
b)
Banks obtain completion certificates
c)
Banks disburse loans upfront
d)
None of the above
e)
None of the above
34.
What is the typical repayment period for home loans?
a)
10 years
b)
20 years
c)
30 years
d)
40 years
e)
None of the above
35.
What does the term "tokenisation" refer to in credit card transactions?
a)
Replacement of actual card details with a unique code
b)
Sharing card details with the merchant
c)
Protecting card details using encryption
d)
None of the above
e)
None of the above
36.
What types of credit cards are typically issued?
a)
Debit cards
b)
Co-branded credit cards
c)
Corporate credit cards
d)
Add-on credit cards
e)
All of the above
37.
How are EMV Chip and PIN enabled cards used in credit card transactions?
a)
They are used to display the cardholder's photo
b)
They are used to withdraw cash from ATMs
c)
They enhance the security of card transactions
d)
None of the above
e)
None of the above
38.
What is the purpose of obtaining a Patta for home loans?
a)
To confirm the borrower's employment status
b)
To verify the borrower's educational qualifications
c)
To provide proof of residence for the borrower
d)
None of the above
e)
None of the above
39.
What is the maximum repayment period for personal loans?
a)
1 year
b)
5 years
c)
10 years
d)
15 years
e)
None of the above
40.
What is the primary target group for home loans?
a)
Retired individuals
b)
Self-employed individuals
c)
Salaried individuals
d)
Students
e)
None of the above
41.
What type of loan is typically used for purchasing a house plot?
a)
Home loan
b)
Personal loan
c)
Business loan
d)
Car loan
e)
None of the above
42.
What is the primary purpose of credit cards?
a)
To provide an interest-free period for cardholders
b)
To facilitate cash withdrawals
c)
To offer insurance coverage for cardholders
d)
To promote national brands
e)
None of the above
43.
Which party is responsible for deciding the issuance of credit cards?
a)
Cardholders
b)
Banks/NBFCs
c)
Merchants
d)
RBI
e)
None of the above
44.
What type of security is typically required for a personal loan?
a)
Mortgage on the borrower's property
b)
Collateral assets
c)
Co-signer's assets
d)
None of the above
e)
None of the above
45.
How do banks determine the eligible amount for personal loans?
a)
Based on the applicant's favorite food
b)
Based on the applicant's social media activity
c)
Based on the applicant's income level
d)
Based on the applicant's astrological sign
e)
None of the above
46.
What is the primary purpose of consumer loans?
a)
Buying a house
b)
Financing a vacation
c)
Purchasing consumer durables
d)
All of the above
e)
None of the above
47.
Which factors are considered when determining the quantum of home loan?
a)
Number of social media followers
b)
Gross monthly income
c)
Favorite color of the applicant
d)
Personal hobbies and interests
e)
None of the above
48.
What is the primary security requirement for home loans?
a)
Co-signer
b)
Mortgage on the property
c)
Collateral assets
d)
None of the above
e)
None of the above
49.
What is the typical repayment period for consumer loans?
a)
1 year
b)
2 years
c)
3 years
d)
4 years
e)
None of the above
50.
Which document is NOT typically required for a home loan application?
a)
Marriage certificate
b)
Valuation report from an engineer
c)
Bank statement for the last 12 months
d)
Birth certificate
e)
None of the above
51.
What is the role of banks regarding housing projects' completion?
a)
Banks provide funds for completion
b)
Banks conduct regular site visits
c)
Banks conduct quality inspections
d)
None of the above
e)
None of the above
52.
What is the typical repayment period for personal loans?
a)
5 years
b)
10 years
c)
15 years
d)
20 years
e)
None of the above
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