Question 1

Smart Card is ______

Accepted Answer

A)  Special purpose Cards
B)  Microprocessor Cards
C)  Processing unit contains memory for storing data
D)  Processing unit for software B

Question 2

……………………….credit card gives all the advantages of a normal credit card without worrying about the interest charges.

Accepted Answer

A)  Prepaid
B)  Post paid
C)  both of these
D)  none of these A

Question 3

What is the maximum validity period of a PPI?

Accepted Answer

A)  6 months
B)  12 months
C)  9 months
D)  3 months B

Question 4

Which of the following is not one of the types of PPIs issued?

Accepted Answer

A)  Closed System PPIs
B)  Semi-closed System PPIs
C)  Open System PPIs
D)  Semi-open System PPIs

Question 5

Paytm, MobiKwik is an example of which type of PPI?

Accepted Answer

A)  Semi-closed System PPIs
B)  Open System PPIs
C)  Closed System PPIs
D)  Semi-Open System PPIs

Question 6

In …………………..type of payment system customer is allowed to spend only up to the amount that have pre deposited into account.

Accepted Answer

A)  Prepaid
B)  Post paid
C)  both of these
D)  none of these

Question 7

What is the maximum permitted limit of balance at any point in time in PPIs per month?

Accepted Answer

A)  Rs 75,000
B)  Rs 1 lakh
C)  Rs 25,000
D)  Rs 50,000

Question 8

Venture capital is concerned with:

Accepted Answer

A)  New project having potential for higher profit
B)  New project of high technology
C)  New project having high risk
D)  All the above.

Question 9

In the Open System PPIs, the outstanding amount should not exceed______________ at any point.

Accepted Answer

A)  Rs 10,000
B)  Rs 50,000
C)  Rs 1 lakh
D)  Rs 2 lakh

Question 10

An entity registered under which act can issue PPIs?

Accepted Answer

A)  Reserve Bank of India Act, 1934
B)  Companies Act, 1956 / Companies Act, 2013
C)  Banking Regulations Act, 1949
D)  Payment and. Settlement Systems Act, 2007

Question 11

What is the rate of interest offered on PPI balance?

Accepted Answer

A)  1%
B)  2%
C)  Zero
D)  3%

Question 12

The PPIs that are issued by an entity for facilitating the purchase of goods and services from that entity only and do not permit cash withdrawal are known as_____________

Accepted Answer

A)  Open System PPIs
B)  Semi-closed System PPIs
C)  Semi-open System PPIs
D)  Closed System PPIs

Question 13

A……………………..is a device that includes an embedded integrated circuit Chip [ICC] that can be either a secure micro controller or equivalent intelligence with internal memory or a memory chip alone.

Accepted Answer

A)  smart Cards
B)  E-Cheques
C)  E-cash
D)  none of these

Question 14

Which of the following is an example of Open System PPIs?

Accepted Answer

A)  Rupay
B)  Paytm Wallet
C)  Ola Money
D)  All the above

Exam 4: Prepaid Payment Instruments (PPIS) and Venture Capital