Banking – Multiple Choice Questions (MCQs)

1. 49. What is 'Cyber Security' in banking?

   • A. Protecting physical branches of banks
   • B. Protecting electronic banking systems from cyber threats
   • C. Training bank employees on customer service
   • D. Ensuring compliance with RBI regulations

2. 50. What is 'Digital Banking'?

   • A. Banking services provided through digital channels such as internet and mobile
   • B. Traditional banking services offered at physical branches
   • C. Banking services focused only on online transactions
   • D. Banking services offered only to tech-savvy customers

3. 51. What is 'Fintech'?

   • A. Financial technology companies that use technology to make financial services more efficient
   • B. Traditional financial institutions adopting new technologies
   • C. Government agencies regulating the financial sector
   • D. Companies that manufacture banking hardware

4. 52. What is 'Shadow Banking'?

   • A. Financial intermediaries that perform banking functions outside the traditional regulated banking system
   • B. Traditional banks operating secretly
   • C. Illegal money lending activities
   • D. Non-financial companies offering credit

5. 53. What is 'Gresham's Law'?

   • A. Bad money drives out good
   • B. Good money drives out bad
   • C. Inflation always leads to deflation
   • D. Deflation always leads to inflation

6. 54. What is 'Legal Tender'?

   • A. Money that a creditor is legally bound to accept in payment of a debt
   • B. Any form of currency
   • C. Coins only
   • D. Credit cards and debit cards

7. 55. What is 'Fiat Money'?

   • A. Money that derives its value from government regulation or law
   • B. Money that is backed by a physical commodity like gold
   • C. Money whose value is determined by supply and demand
   • D. Money used only for international transactions