Practicing Class 7 SST MCQ and Class 7 Social Science Chapter 8 Banks and the Magic of Finance MCQ Questions Online Test with Answers daily helps in time management.
Class 7 Banks and the Magic of Finance MCQ with Answers
MCQ on Banks and the Magic of Finance Class 7
Class 7 SST Chapter 8 Banks and the Magic of Finance MCQ Questions with Answers
Question 1.
Banks provide several important services to the public. Which one of the following is a primary function of a bank?
(a) Repairing machines
(b) Issuing passports
(c) Conducting school examinations
(d) Accepting deposits and giving loans
Answer:
(c) Conducting school examinations
Question 2.
Which of the following enables people to make instant digital payments using their mobile phones?
(a) Cheque book
(b) UPI
(c) Deposit slip
(d) Demand draft
Answer:
(b) UPI
Question 3.
The organisation that regulates all banks in India is:
(a) State Bank of India
(b) World Bank
(c) Reserve Bank of India
(d) Finance Ministry
Answer:
(b) World Bank
Question 4.
A fixed deposit generally provides a
(a) Higher interest rate
(b) Zero interest rate
(c) Lower interest rate
(d) Penalty-free withdrawal
Answer:
(a) Higher interest rate
Question 5.
Which of the following details should never be shared with anyone?
(a) Mobile number
(b) OTP
(c) Home address
(d) Email ID
Answer:
(c) Home address
Question 6.
Shares represent:
(a) A loan from the government
(b) A type of tax
(c) A fixed deposit
(d) A portion of ownership in a company
Answer:
(c) A fixed deposit
Question 7.
ATMs help customers to:
(a) Buy vegetables
(b) Print textbooks
(c) Withdraw money anytime
(d) Travel abroad
Answer:
(b) Print textbooks
Question 8.
The helpline number to report digital fraud is:
(a) 100
(b) 112
(c) 1930
(d) 1800
Answer:
(c) 1930
Question 9.
Which one of the following is an example of digital banking?
(a) Paying through UPI
(b) Using a passbook
(c) Filling deposit slips
(d) Counting cash manually
Answer:
(c) Filling deposit slips
Question 10.
Banks earn their main income from:
(a) Selling groceries
(b) Providing electricity
(c) Conducting sports events
(d) Charging interest on loans
Answer:
(b) Providing electricity
Banks and the Magic of Finance Class 7 Assertion-Reason Questions
There are two statements in each question marked as Assertion (A) and Reason (R). Choose your answer as per the option given below:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
1. Assertion (A): Banks encourage people to save money by paying interest on deposits.
Reason (R): Interest helps deposited money grow over time through compounding.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
2. Assertion (A): A current account generally earns interest on deposits.
Reason (R): Current accounts are mainly used by businesses for frequent transactions.
Answer:
(d) (A) is false, but (R) is true.
3. Assertion (A): Fixed deposit accounts usually offer higher interest than savings accounts.
Reason (R): Money in fixed deposits is locked for a fixed period and cannot be withdrawn easily.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
4. Assertion (A): Banks charge higher interest on loans than they pay on deposits.
Reason (R): The difference between these interest rates is a source of income for banks.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
5. Assertion (A): The Reserve Bank of India supervises all commercial banks in India.
Reason (R): RBI is the oldest stock exchange in the world.
Answer:
(c) (A) is true, but (R) is false.
6. Assertion (A): UPI allows instant transfer of money between bank accounts.
Reason (R): UPI transactions require the physical exchange of cheques.
Answer:
(c) (A) is true, but (R) is false.
7. Assertion (A): Share prices can rise or fall depending on company performance.
Reason (R): Government policies, wars, and economic shocks can affect share prices.
Answer:
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
8. Assertion (A): Debit cards can be used only for withdrawing cash from ATMs.
Reason (R): Debit cards can also be used at POS machines for making payments.
Answer:
(d) (A) is false, but (R) is true.
9. Assertion (A): Financial infrastructure includes banks, payment systems, and stock markets.
Reason (R): Financial infrastructure helps promote savings, credit, and investment.
Answer:
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
10. Assertion (A): Sharing OTPs with strangers can lead to financial fraud.
Reason (R): OTPs are used to verify and authorise banking transactions.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Banks and the Magic of Finance Class 7 Fill in the blanks
1. Banks accept money from the public as………..
Answer:
deposits
2. A savings account usually earns………..
Answer:
interest
3. Interest earned on interest is called ………..
Answer:
compounding
4. RBI was established in the year………..
Answer:
1935
5. UPI was launched in the year ………..
Answer:
2016
6. A cheque is a ……….. instrument.
Answer: paper
7. Debit cards can be used at ………..
Answer: ATMs
8. A person who borrows from a bank is called a ………..
Answer: borrower
9. The stock market allows buying and selling of ………..
Answer: shares
10. Fraudulent callers often ask for ……….. which should never be shared.
Answer: OTP
Banks and the Magic of Finance Class 7 True or False
1. Banks lend all deposited money to borrowers.
Answer:
False
2. A fixed deposit gives higher returns than a savings account.
Answer:
True
3. Debit cards cannot be used for online payments.
Answer:
False
4. UPI requires visiting the bank physically.
Answer:
False
5. RBI prints and regulates currency.
Answer:
True
6. Stock prices always increase.
Answer:
False
7. A cheque can be used to directly pay a person.
Answer:
True
8. Internet banking allows checking transaction history.
Answer:
True
9. Sharing OTP is safe if the caller says he is from the bank.
Answer:
False
10. Compounding increases money over time.
Answer:
True
Banks and the Magic of Finance Class 7 Match the following
Question 1.
Answer:
| Column A | Column B |
| 1. Savings account | (d) Limited withdrawals |
| 2. Current account | (c) For businesses |
| 3. Fixed deposit | (b) Higher interest |
| 4. Borrower | (a) Takes loan |
Question 2.
Answer:
| Column A | Column B |
| 1. RBI | (d) Central bank |
| 2. UPI | (c) Digital payments |
| 3. BSE | (b) Stock exchange |
| 4. NPCI | (a) Created UPI |