Credit & Debit Card MCQ

Q.136. What is a credit card? A plastic card which
a. Containsidentificationinformation
b. Authorisesnamedperson  to  chargepurchases/services
c. Charges for which person will be billed periodically
d. Allabove

Q.137. Identification informations on credit card can be read by?
a) ATMs
b) Pointof Sales Terminals
c) Both(a) +(b)
d) Branch Manager

Q.138. The concept behind a credit card is -
a. Usenow, debit later
b. Buy now, pay later ,
c. Pay now, get credit later
(d)  Lend now and do not reimburse

Q.139. Which are the main issuers of credit cards in the world and in   India?
(a) Visaand Master Card
(b) Amexand Intenational (c) RTGSand NSS
(d)  Visa, Master and Amex cards

Q.140. Features of credit card is/are
(a)   Key to opening of bank accounts for daily payments
(b) Substitute of cash
(c) Issuingbank/financialinstitutionknowsthecreditworthnewofcustomer
d) Allabove

Q.141. Credit card has the benefit to bank, its advantages are
a. Increase the credit and its reputation with public
b. Growth of interest income
c. Earns  commissionfrombusiness  establishment
d. Allabove

Q.142. What are the advantage of card holder?
a) Sanctionofcreditlimitbybank
b) Outstandingoverdraftofperiodbetween 25 to  27days
c) Doesnotrequirecashcarryinganditsriskofloss
d) Both(a)+(b)

Q.143. Discuss the types of credit cards in  India
a) ChargeCard/Smart  Card/Restructuedcard/ATMcard/Kissancreditcard
b) Debitcard/chip card/Member card/whitelabel card
(c) Both (a) and   (b)
(d)  None of above


Q.144. The  difference between credit and debit cards  is
g) Accountgetsdebitedonuseofcreditcardimmediately
h) Accountgetsdebitedonuse,  ofdebitcardimmediately
i) Accountdoesnotgetsdebitedimmediatelyonuseofdebitcard
j) Noneofabove


Q.145. From credit card, credit risk to the bank is    high from
k) Creditcardholder
l) Debitcardholder
m)Both(a) and(b)
n) Noneofabove


Q.146. The bank which pays the merchant for the transactions is called
o) Issuerbank
p) Clearingbank
q) Acquirerbank
r) Noneofabove


Q.147. Name the credit card wherein transactions by the cardholders are accumulated over a month, is called
s) Smart Card
t) ChargeCard
u) Member Card
v) Chip Card


Q.148. What is the difference between a credit and charge card? In charge card requirements are    -
w) Amountbecomespayableondebittoaccount
x) ChargeCardholderwouldwarrant,aaccountinconcernedbank
y) Both(a)+(b)
z) Anyof(a) and(b)


Q.149. What is Debit card?
aa)Itisamobilepurse
bb)      Automaticallydebitscardholder'saccount
cc)Allowswithdrawaluptocreditbalanceintheaccount dd)    All above


Q.150. Difference between Debit and cards are there. Credit cards are superior to debit cards in - ee)       Higherborrowingpoweronthebankuptoyourcreditworthiness
ff) Biggersocialstatussinceoneavailscredit gg)Both(a)+(b)
hh)   Only(a)


Q.151. Are three advantage of credit card to the member   establishment?
Increase in sales due to increased purchasing power of card   holders
ii) Nodirectcredittocustomers/systematicaccounting
jj) Noadvertisingandpromotionalactivitiesrequired/assuredandimmediatesettlementpayments kk)Allabove
ll)   Only(a)+(b)


Q.152. Whichplasticcardshasgottheadvantagesofgivingcashbackonpurchasesanddiscountsatretailoutlets?
mm)Debitcard nn)  Creditcard oo) Both(a)+(b) pp)    ATMcard


Q.153. Payments of credit cards is done by banks under
qq)   RTGS
rr) ECS
ss) CBS tt) None


Q.154. Out of Debit and Credit Cards which are is more attractive to a customer for availing facilities of-No charges/No service tax/replaces ATM card
uu) Debitcard vv)Creditcard ww) ATMcard xx)Smartcard


Q.155. What are  the requirement for Debit Cards by   RBI?
yy)Barredfromtyingupwithnobankentitiestowithdrawcash/makedeposits zz)  Monitoringof  SLR/CRRoncreationofdepositsthroughcards
aaa) Both(a)+(b) bbb) None of above


Q.156. Salient features of credit cards are   -
ccc) Accepted globally through affiliation with visa/master/amex cards/ issued with credit/up to upper limit/regular billing cycle and billing date/personalaccidentinsurancecoveravailabletocustomer
ddd) Rewards points are awarded for card holder having classes of silver/gold/platinum/titanium/reward points are redeemable/ cash book  offer between 2% to 10% but under a ceiling/add on facility available/liability for card holder in case of loss of cards limited to 1000andthebalance by misusancecompanyonlinepurchasespossiblethrougheverytimenewpassword
eee)  Both(a)+(b)
fff)Somefeatures..of (a) and some of (b) only


Q.157. In the account opening form for issue of credit card, when the customer is already credit cardholder with other institution, what details and outstanding balance declaration are   required?
ggg)       Optional-detailsofothercreditcardsandoutstandingbalancestherein hhh)    Compulsory-detailsofothercreditcardsandoutstandingbalancesthereis-
iii) Companydetailsofthecreditcardsbutoutstandingbalance, optimal jjj) Optimal-details of other credit  cards


Q.158. Nomination details, after the death of cardholder are required to be given, while submitting credit card application form. This is essential for purpose  of?
kkk) Topaycreditcardduesbynominee lll)   Togetinsurancecoverasnominee
mmm) Toreimburselossbyinsurancecompanyafterthelossofcard,    asnominee nnn)Notrequired


Q.159. Variousparametersarejudgedbythecardissuerforhighercreditcardscoring.    Namesuchparameters
a) Agebetween 31-45 years/professionalorpostgraduate/servingingovernmentorganisationor PSU/selfemployedorowner/ lengthofservice 5 yrs. and aboveinprofessionorbusiness
b) Lessernumberofdependents/selfownedhouse/selfedownedcar/incomeupto   2   Iakhsyearly/spouseincomebelow 5 lakhs/no card holder earlier
c) Integrity/character/conductsatisfactorybankexperiencedepositupto   1Iakhwithbank/bankingwithbankupto   6  months/owningtwowheelers/residingin
rentedhouse
d) Applicationbetween        45-
49years/everundergraduate/servingwithpublicLtd./Lengthofservicebetweenlyr.to2years/happyfamilyof5persons

Q.160.Ordinarilythereareonlytwokindsofcards(plasticmoney)viz.Creditcardsanddebitcards.Itthereisanyothercardtobegivenasgiftandissuedby corporates?
ooo) Smart Card
ppp) Pre Loaded Cards qqq) Prepaid Cards rrr)  Both(b)    (c)
Q.161. Creditcardsissuedbybanks,    toawardcashbackpointsis/arecalled
sss) Titanium/Platinum/Gold/Silver Card ttt)Platinum/Gold/Silver  Card'
uuu) Platinum/Gold Card
vvv)   Goldand Silver Card
Q.162. Payments default risk is embedded in which type of   cards?
www) Debitcard
xxx) Creditcard yyy)  Both(a)+(b)

zzz)   None
Q.163. Banks charges levied for which kind of services on the card holders are - aaaa) Financecharges,    wherepartamountpaidofthetotalpayment
bbbb) Minimum amount due means one debits/previous unpaid payments and   other charges cccc) Annualised percentage rate-monthly interest when annualised
dddd) Only (b) +  (c)
eeee) All (a) to  (c)
Q.164. What is meant by other charges levied by banks to card   holders?
(a) Cash advance transaction fees/card replacement (lost, reissue) charges
(b) Overdue penalty-late payment fee-over limit penalty/cheque dishonour   fees
(c) Both (a) + (b)
(d) Card  replacement/overdue  penalty/over  limit  penalty only
Q.165. Forex cards are  issued by  banks to  substitute-
a) Foreign  currency notes
b) Travellers cheques
c) Indian  currency Notes
d) Both (a) +  (b)
Q.166. Demerits of Credit Cards are  -
a) High  membership fees  and  annual fees
b) High rate of interest for delayed payments and extension of   time
c) (C) Tempt  the cardholders  for  add-on members
d) Both (a) +  (b)
Q.167. Demerits to  issuers  of  credit cards
a. High cost of local made plastic   card
b. High  cost  of  imported plastic card/maketing cost
c. High cost of credit checks on   applicants
d. Both (a) +  (c)
e. Both (b) +  (c)
Q.168. Default rate in credit cards has gone up high in recent due   to-
(a) Use of  debit card
(b) Use of  Amex card
(c) Non utilisation or under utilisation of  credit   card
(d) Both (b) +  (c)
(e) Use  of multiple credit cards


ANSWER-

136
D
137
C
138
B
139
D
140
D
141
D
142
D
143
A
144
D
145
A
146
C
147
B
148
C
149
D
150
C
151
D
152
A
153
B
154
A
155
A
156
C
157
A
158
B
159
A
160
D
161
A
162
B
163
E
164
C
165
D
166
D
167
E
168
E














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