#1
Which of the following is NOT a type of electronic banking?
Cash deposit
ExplanationCash deposit involves physical currency, not electronic transactions.
#2
What does the term 'ATM' stand for in the context of banking?
Automated Teller Machine
ExplanationATM is a machine that performs banking functions without the need for a teller.
#3
What does the term 'KYC' stand for in banking?
Know Your Customer
ExplanationKYC refers to procedures to verify the identity of clients.
#4
Which of the following is NOT typically a service provided by financial institutions?
Tax filing
ExplanationTax filing is usually not a service offered by financial institutions.
#5
Which of the following is NOT a common feature of a traditional savings account?
High-interest rates
ExplanationTraditional savings accounts typically don't offer high-interest rates.
#6
Which of the following is an advantage of using electronic statements over paper statements?
Electronic statements are more environmentally friendly.
ExplanationElectronic statements reduce paper waste, benefiting the environment.
#7
Which of the following statements is true regarding electronic funds transfer (EFT)?
EFT allows for the transfer of funds electronically between accounts within the same financial institution or different financial institutions.
ExplanationEFT facilitates electronic fund transfers between various accounts.
#8
What is the primary function of a digital wallet in electronic banking?
To securely store payment information for online transactions
ExplanationDigital wallets store payment details securely for online transactions.
#9
What is the main purpose of a SWIFT code in international banking?
To identify the recipient bank in an international transaction
ExplanationSWIFT codes identify banks involved in international transactions.
#10
Which of the following is a potential risk associated with mobile banking?
Security vulnerabilities such as malware and phishing attacks
ExplanationMobile banking exposes users to security risks like malware and phishing.
#11
What is the primary function of a routing number in electronic banking?
To identify the recipient bank in a domestic transaction
ExplanationRouting numbers identify banks in domestic transactions.
#12
What is the purpose of a CVV/CVC code on a credit or debit card?
To provide additional security for online transactions
ExplanationCVV/CVC codes offer extra security for online card transactions.
#13
What is the role of encryption in ensuring security in electronic banking transactions?
Encryption ensures that data transmitted between the user and the bank is secure and cannot be easily intercepted by hackers.
ExplanationEncryption secures data transmission, preventing unauthorized access.