1. What does e-Banking stand for?
a) Electronic Banking
b) Efficient Banking
c) Effective Banking
d) Economical Banking
Answer: a) Electronic Banking
2. Which of the following is NOT a form of e-Banking?
a) ATM (Automated Teller Machine)
b) Mobile Banking
c) Internet Banking
d) Traditional Branch Banking
Answer: d) Traditional Branch Banking
3. Which technology is commonly used for secure transactions in e-Banking?
a) Blockchain
b) Artificial Intelligence (AI)
c) Encryption
d) Virtual Reality (VR)
Answer: c) Encryption
4. What is the primary advantage of e-Banking for customers?
a) Reduced transaction fees
b) Convenience and accessibility
c) Higher interest rates on savings accounts
d) Personalized customer service
Answer: b) Convenience and accessibility
5. Which of the following is a feature of mobile banking?
a) Accessing account balance through SMS
b) Making cash withdrawals at ATMs
c) Writing checks
d) Visiting a bank branch in person
Answer: a) Accessing account balance through SMS
6. Which device is commonly used for accessing internet banking?
a) Desktop computer
b) Landline telephone
c) Fax machine
d) Vending machine
Answer: a) Desktop computer
7. Which of the following is a benefit of ATM banking?
a) Online shopping
b) Cash withdrawals and deposits
c) Account statements via email
d) International money transfers
Answer: b) Cash withdrawals and deposits
8. Which security measure is commonly used for authentication in e-Banking?
a) Fingerprint recognition
b) Voice recognition
c) Passwords/PINs
d) All of the above
Answer: d) All of the above
9. What is the role of OTP (One-Time Password) in e-Banking?
a) To verify the identity of the user during transactions
b) To reset the user’s password
c) To access account statements
d) To apply for a loan
Answer: a) To verify the identity of the user during transactions
10. What is the maximum limit for a single transaction in e-Banking?
a) No limit
b) ₹10,000
c) ₹1,00,000
d) ₹10,00,000
Answer: a) No limit
11. Which of the following is NOT a service commonly offered in e-Banking?
a) Bill payments
b) Account balance enquiry via phone call
c) Fund transfers
d) Account statements
Answer: b) Account balance enquiry via phone call
12. What is the significance of 24/7 availability in e-Banking?
a) The bank is open 24 hours a day, 7 days a week
b) The bank is closed on weekends
c) The bank is closed on weekdays
d) The bank is only open during business hours
Answer: a) The bank is open 24 hours a day, 7 days a week
13. What is the primary risk associated with e-Banking?
a) Loss of physical cash
b) Unauthorized access to accounts
c) Inflation
d) Currency devaluation
Answer: b) Unauthorized access to accounts
14. Which of the following is NOT a factor affecting the security of e-Banking?
a) Strong encryption
b) Use of public computers for transactions
c) Regular password changes
d) Two-factor authentication
Answer: b) Use of public computers for transactions
15. What is the process of electronically depositing a paycheck directly into an employee’s bank account called?
a) Online shopping
b) Direct deposit
c) Mobile banking
d) Wire transfer
Answer: b) Direct deposit
16. Which of the following is a disadvantage of e-Banking?
a) Limited access to account information
b) Increased risk of fraud
c) Higher transaction fees
d) Lack of customer support
Answer: b) Increased risk of fraud
17. What is the primary advantage of mobile banking?
a) Higher interest rates on savings accounts
b) Convenience of accessing accounts on the go
c) Lower transaction fees
d) Increased security
Answer: b) Convenience of accessing accounts on the go
18. Which of the following is NOT a feature of internet banking?
a) Bill payments
b) Fund transfers between accounts
c) ATM cash withdrawals
d) Account balance enquiry
Answer: c) ATM cash withdrawals
19. Which technology allows e-Banking customers to remotely deposit checks using their smartphone camera?
a) Optical Character Recognition (OCR)
b) Near Field Communication (NFC)
c) QR code scanning
d) Remote Deposit Capture (RDC)
Answer: d) Remote Deposit Capture (RDC)
20. What is the purpose of a virtual wallet in e-Banking?
a) Storing physical cash
b) Organizing digital receipts
c) Managing multiple bank accounts
d) Storing digital currency or funds
Answer: d) Storing digital currency or funds
21. Which of the following is a potential risk associated with online banking?
a) Physical theft of the user’s mobile device
b) Increased convenience in managing finances
c) Exposure to malware or phishing attacks
d) Higher interest rates on loans
Answer: c) Exposure to malware or phishing attacks
22. Which regulatory body is responsible for overseeing e-Banking operations in many countries?
a) International Monetary Fund (IMF)
b) World Bank
c) Reserve Bank of India (RBI)
d) Federal Deposit Insurance Corporation (FDIC)
Answer: c) Reserve Bank of India (RBI)
23. What is the primary function of a bank’s website in e-Banking?
a) Providing information about the bank’s history
b) Enabling customers to perform transactions and access account information
c) Selling products and services unrelated to banking
d) Hosting online forums for customer discussions
Answer: b) Enabling customers to perform transactions and access account information
24. Which of the following statements about e-Banking is true?
a) It is only accessible to customers with high credit scores
b) It eliminates the need for banks to maintain physical branches
c) It is limited to certain types of financial transactions
d) It requires customers to visit the bank in person for every transaction
Answer: b) It eliminates the need for banks to maintain physical branches
25. What is the role of a firewall in e-Banking security?
a) Blocking unauthorized access to the bank’s physical premises
b) Preventing unauthorized access to the bank’s computer network
c) Ensuring compliance with government regulations
d) Providing customer support for online transactions
Answer: b) Preventing unauthorized access to the bank’s computer network
26. Which of the following is an example of a non-bank e-Banking service provider?
a) Visa
b) Mastercard
c) PayPal
d) American Express
Answer: c) PayPal
27. How can customers typically access e-Banking services?
a) By visiting a physical bank branch
b) By making a phone call to the bank’s customer service center
c) By using a computer or mobile device connected to the internet
d) All of the above
Answer: c) By using a computer or mobile device connected to the internet
28. What is the primary purpose of e-Banking security protocols?
a) To prevent customers from accessing their own accounts
b) To protect customer data and prevent unauthorized access
c) To limit the types of transactions customers can perform
d) To collect personal information for marketing purposes
Answer: b) To protect customer data and prevent unauthorized access
29. Which of the following is NOT a feature commonly offered by e-Banking platforms?
a) Bill payment services
b) Investment advice
c) Account balance monitoring
d) Online loan applications
Answer: b) Investment advice
30. What is the primary benefit of e-Banking for banks?
a) Increased cost of operations due to maintenance of physical branches
b) Decreased customer reach compared to traditional banking methods
c) Enhanced customer satisfaction and loyalty
d) Limited access to customer data for marketing purposes
Answer: c) Enhanced customer satisfaction and loyalty
31. Which of the following statements about e-Banking is false?
a) It allows customers to perform transactions from anywhere with internet access
b) It eliminates the need for physical cash
c) It is entirely free of security risks
d) It provides convenience and flexibility to customers
Answer: c) It is entirely free of security risks
32. How does e-Banking contribute to environmental sustainability?
a) By reducing paper usage for transactions and statements
b) By increasing the need for physical branches
c) By encouraging customers to visit bank branches in person
d) By promoting the use of plastic cards for transactions
Answer: a) By reducing paper usage for transactions and statements
33. Which of the following is a disadvantage of e-Banking for elderly customers?
a) Increased accessibility and convenience
b) Lack of familiarity with technology
c) Reduced risk of financial fraud
d) Lower transaction fees compared to traditional banking
Answer: b) Lack of familiarity with technology
34. How does e-Banking facilitate international transactions?
a) By providing access to foreign currency exchange services
b) By allowing customers to visit physical bank branches overseas
c) By enabling electronic fund transfers between different countries
d) By requiring customers to physically carry cash for international trips
Answer: c) By enabling electronic fund transfers between different countries
35. Which of the following is NOT a factor contributing to the growth of e-Banking?
a) Advancements in technology and internet connectivity
b) Increased demand for personalized customer service
c) Changing consumer preferences towards digital solutions
d) Regulatory support and encouragement for digital banking
Answer: b) Increased demand for personalized customer service
36. How does e-Banking impact the job market in the banking industry?
a) It leads to a decrease in demand for skilled employees
b) It creates new job opportunities in areas such as cybersecurity and digital marketing
c) It eliminates the need for human employees altogether
d) It has no impact on the job market
Answer: b) It creates new job opportunities in areas such as cybersecurity and digital marketing
37. Which of the following statements about e-Banking security measures is true?
a) They are not necessary for ensuring safe transactions
b) They are only applicable to online banking platforms
c) They include measures such as encryption, multi-factor authentication, and firewalls
d) They primarily focus on maximizing transaction speeds
Answer: c) They include measures such as encryption, multi-factor authentication, and firewalls
38. How does e-Banking contribute to financial inclusion?
a) By restricting access to banking services only to high-income individuals
b) By providing banking services to underserved and remote populations
c) By limiting access to banking services to urban areas only
d) By increasing transaction fees for low-income individuals
Answer: b) By providing banking services to underserved and remote populations
39. What is the purpose of e-Banking analytics?
a) To analyze customer behavior and preferences
b) To increase transaction fees for customers
c) To limit the number of transactions allowed per day
d) To collect personal information for marketing purposes
Answer: a) To analyze customer behavior and preferences
40. How do banks ensure the security of e-Banking transactions?
a) By implementing robust security protocols and encryption techniques
b) By limiting access to banking services only during business hours
c) By requiring customers to physically visit bank branches for every transaction
d) By outsourcing security responsibilities to third-party vendors
Answer: a) By implementing robust security protocols and encryption techniques
41. Which of the following is NOT a component of e-Banking security?
a) Biometric authentication
b) Two-factor authentication
c) Captcha verification
d) Social engineering attacks
Answer: d) Social engineering attacks
42. How does e-Banking enhance customer experience?
a) By increasing the number of physical branches for easy access
b) By reducing the need for customers to visit bank branches in person
c) By limiting the availability of customer support services
d) By imposing strict transaction limits on customer accounts
Answer: b) By reducing the need for customers to visit bank branches in person
43. Which of the following is NOT a type of e-Banking service?
a) Virtual reality banking
b) Mobile banking
c) Internet banking
d) ATM banking
Answer: a) Virtual reality banking
44. What is the role of e-Banking in promoting financial literacy?
a) It restricts access to financial information only to banking professionals
b) It provides educational resources and tools to help customers understand financial concepts
c) It discourages customers from seeking financial advice from experts
d) It imposes penalties on customers for accessing account information
Answer: b) It provides educational resources and tools to help customers understand financial concepts
45. Which of the following statements about e-Banking is true?
a) It is only accessible to customers with high credit scores
b) It eliminates the need for physical cash
c) It is entirely free of security risks
d) It provides convenience and flexibility to customers
Answer: d) It provides convenience and flexibility to customers
46. What is the purpose of e-Banking regulations?
a) To restrict access to banking services
b) To promote competition and innovation in the banking industry
c) To limit the availability of banking services to urban areas
d) To discourage the use of technology in banking
Answer: b) To promote competition and innovation in the banking industry
47. Which of the following is NOT a factor contributing to the growth of e-Banking?
a) Advancements in technology and internet connectivity
b) Increased demand for personalized customer service
c) Changing consumer preferences towards digital solutions
d) Regulatory support and encouragement for digital banking
Answer: b) Increased demand for personalized customer service
48. How does e-Banking contribute to financial inclusion?
a) By restricting access to banking services only to high-income individuals
b) By providing banking services to underserved and remote populations
c) By limiting access to banking services to urban areas only
d) By increasing transaction fees for low-income individuals
Answer: b) By providing banking services to underserved and remote populations
49. What is the purpose of e-Banking analytics?
a) To analyze customer behavior and preferences
b) To increase transaction fees for customers
c) To limit the number of transactions allowed per day
d) To collect personal information for marketing purposes
Answer: a) To analyze customer behavior and preferences
50. How do banks ensure the security of e-Banking transactions?
a) By implementing robust security protocols and encryption techniques
b) By limiting access to banking services only during business hours
c) By requiring customers to physically visit bank branches for every transaction
d) By outsourcing security responsibilities to third-party vendors
Answer: a) By implementing robust security protocols and encryption techniques
Leave a Reply