MCQ Test - Digital Payment System

1. What is a digital payment?

A. A payment made electronically

B. A payment made only with coins

C. A handwritten note

D. A paper timetable

2. What is the full form of UPI?

A. Universal Payment Internet

B. Unified Payments Interface

C. Unique Personal Identification

D. United Payment Institution

3. What is generally required to authorize a UPI payment?

A. A computer wallpaper

B. A printer

C. The correct UPI PIN when requested

D. A document scanner

4. What does a QR code help a user do during a digital payment?

A. Increase screen brightness

B. Format a hard disk

C. Create a text document

D. Scan payment details or recipient information

5. Which service allows banking through a mobile application?

A. Mobile banking

B. Word processing

C. Desktop publishing

D. File compression

6. Which card generally deducts payments from the linked bank account?

A. Credit card

B. Debit card

C. Library card

D. Identity card

7. Which card allows eligible purchases using an approved credit limit?

A. Debit card

B. Library card

C. Credit card

D. Membership card

8. What is the full form of NEFT?

A. National Electronic Finance Transfer

B. New Electronic Funds Technology

C. National Exchange of Financial Transactions

D. National Electronic Funds Transfer

9. What is the full form of RTGS?

A. Real Time Gross Settlement

B. Rapid Transaction General Service

C. Real Transfer Gateway System

D. Registered Transaction Global Service

10. Which Indian payment service supports immediate interbank transfers?

A. NEFT only

B. IMPS

C. A paper cheque only

D. A printed receipt

11. What is the main purpose of a POS terminal?

A. To edit photographs

B. To create presentations

C. To accept electronic payments at a merchant location

D. To scan computer viruses

12. What does OTP stand for?

A. Online Transaction Process

B. Official Transfer Password

C. Open Technology Protocol

D. One-Time Password

13. Should you share your UPI PIN with another person?

A. No, it must remain secret

B. Yes, with every caller

C. Yes, with unknown callers

D. Yes, on social media

14. What should you do before approving a payment?

A. Ignore the amount

B. Verify the recipient and payment details

C. Share your OTP publicly

D. Click every payment link

15. What is two-factor authentication?

A. Using two usernames without passwords

B. Making two payments for everything

C. Using two different authentication factors

D. Using two bank accounts for every payment

16. What should you do after noticing an unauthorized digital transaction?

A. Ignore it permanently

B. Share your PIN with the caller

C. Delete all transaction records

D. Contact your bank or payment provider promptly and report it

17. What is an electronic payment receipt?

A. A digital record of a transaction

B. A computer keyboard

C. A paperless printer cable

D. A programming language

18. Which is a safer digital payment practice?

A. Installing apps from unknown links

B. Using official applications and protecting authentication codes

C. Sharing your PIN with strangers

D. Ignoring transaction alerts

19. Which system settles eligible transfers individually in real time?

A. A paper cheque

B. A printed invoice

C. RTGS

D. A handwritten ledger

20. What should you do if a payment shows pending?

A. Immediately repeat it many times

B. Assume it succeeded without checking

C. Share your banking password

D. Check the status and account statement before retrying

📝 MCQ Test

Chapter 20 - Digital Payment System