Rajasthan Board RBSE Class 12 Economics Chapter 25 Cashless Transaction
RBSE Class 12 Economics Chapter 25 Practice Questions
RBSE Class 12 Economics Chapter 25 Multiple Choice Questions
Question 1.
Saving of time and wealth is possible :
(a) In barter exchange system
(b) In monetary system
(c) In cash transactions
(d) In cashless transactions
Answer:
(d)
Question 2.
Which of the following will be called cashless transaction?
(a) Cash payment
(b) Payment by cheque
(c) Payment through only big denomination notes
(d) Payment by coins
Answer:
(b)
Question 3.
Which technique is not used in online payment ?
(a) NIGS
(b) NEFT
(c) RTGS
(d) IMPS
Answer:
(a)
Question 4.
Which of the following does not need internet facility in digital payment ?
(a) Internet banking
(b) E-wallet
(c) Swipe card
(d) USSD technique
Answer:
(d)
Question 5.
The name of digital payment app promoted by government of India is :
(a) Digital app
(b) Bharat app
(c) Bhiin app
(d) Payment app
Answer:
(c)
Question 6.
Which of the following is used traditionally for cashless payment ?
(a) E wallet
(b) Internet banking
(c) Cheque or draft
(d) Debit/credit card
Answer:
(c)
RBSE Class 12 Economics Chapter 25 Very Short Answer Type Questions
Question 1.
Write the meaning of cashless transaction.
Answer:
Economic transaction without cash is known as cashless transaction.
Question 2.
From where can cheque hooks be obtained ?
Answer:
Cheque books can be obtained from banks.
Question 3.
From where can we download any type of mobile app ?
Answer:
In Android phones we can download any type of mobile app using Google Playstore.
Question 4.
Write down one method of making online payment through bank.
Answer:
Payment of rail ticket is done through internet banking.
Question 5.
Write down the full form of BHIM app.
Answer:
Bharat Interface for Money.
RBSE Class 12 Economics Chapter 25 Short Answer Type Questions
Question 1.
Write down any four mediums of cashless transactions.
Answer:
Following are the four mediums of cashless transactions :
- Through cheque
- Through Internet
- Through Swipe machine
- Through ATM machine.
Question 2.
Write a short note on utility of cashless transaction.
Answer:
Increased circulation of money in cash form in economic transactions of the country, on one hand, encourages black marketing and corruption, and on the other hand, heavy pressure is exerted on the system for issue of currency. Therefore, cashless transactions are the need of the hour and are also essential, convenient and safe for economy.
Question 3.
Define E-commerce.
Answer:
E-commerce is an advanced and new technique of business in which business is operated through Internet. In e-commerce, not only can a customer purchase goods and services from home, but a seller can also sell his products across the world with the help of internet.
Question 4.
What precautions should be taken while performing digital transactions ?
Answer:
Following are the precautions that should be taken while performing digital transactions :
- Keep your ATM PIN code secret.
- Use mobile app only after verifying it officially.
- Do not lend your mobile to someone else for use.
- If you suspect any doubtful transaction, immediately contact the banking authority.
Question 5.
Write any four limitations of cashless transactions.
Answer:
Following are the four limitations of cashless transactions :
- Problem for illiterate class : The largest problem proceeding ahead towards a cashless economy is the existence of a big population of illiterate and less educated people. This limits its advantages.
- Lack of banking habits: It is an important economic problem of developing countries that people do not have banking habits.
- Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible.
- Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a huge hurdle in the implementation of cashless transactions.
RBSE Class 12 Economics Chapter 25 Essay Type Questions
Question 1.
How are digital payment methods useful in the technique of E-commerce trading?
Answer:
E-commerce or E-business is an advanced and new technique of business in which business is operated through internet. In e-commerce, not only can a customer purchase goods and services from home, but a seller can also sell his products across the world with the help of internet. Businessmen also obtain customer opinion regarding their products. Internet provides several opportunities for infrastructure, consumer and value added services.
At present, computer telecommunication and cable TV sector is used on large scale in business. From 1990 on wards, business firms have started using internet facility for advertisement and sales promotion. Network of online shopping has become a large part of commercial activities. In 21st century, immense opportunities and competition is being provided to online businesses. Therefore, cashless transaction is possible through digital payment. Government is also focusing on digital payment by which quality products and services can be provided in less time.
Question 2.
What is cashless transaction ? Mention its major mediums in detail.
Answer:
By the word cashless transaction, its meaning can be understood. It means monetary transaction without the use of cash. This type of transaction is made between buyer and seller without the exchange of money. It is possible by transfer of money directly into the bank accounts. It is a part of e-commerce which started in India a decade ago.
Following are the mediums of cashless transactions :
(i) Payment through cheque or draft: The simplest way for making cashless payment is payment through cheque or bank draft. In this system, buyer keeps the cheque book with himself and can make payment to anyone and anywhere through valid cheques. Similarly, for larger transactions, drafts may be used. This can be drawn in the favour of seller by any bank of choice.
(ii) Payment through internet banking : It is the second main method of making cashless payments. Customer may purchase services from many companies online, through internet banking. In this way, without making cash payment, we may purchase goods and services. Payment of rail tickets, air tickets, film tickets, etc. can be done with the help of internet banking. Purchase order on any goods and services can be made through online shopping.
(iii) Payment by swipe machine : Many commercial banks provide swipe machines to the reputed firms on their current account. Through this machine, shopkeeper receives payments from his customers against sale of goods and services. Payment made through swipe machine is directly deposited into the firm’s account. To avail this service, a customer can use credit card or debit card.
(iv) Payment through ATM machine: Through ATM card, a buyer may transfer money in the account of seller without the use of cash. For this facility, it is essential that account of buyer and seller must be in the same bank. It is also essential to know the IFSC code of bank.
(v) Payment by mobile app: Use of mobile has increased largely these days. In a smart phone through different apps, cashless transactions can be made conveniently. For cashless transactions, many banks have issued E-wallet app. Similarly, many domestic and foreign companies have come up with this type of app in android phones. We can make payments while sitting back at home through E-wallet. Recently, the government of India has issued this type of app by the name of BHIM (Bharat Interface for Money). Honourable Prime Minister has issued this type of app for increasing the confidence of public in digital transactions.
(vi) Payments by USSD technique (Unstructured Supplementary Service Data): Through this technique, we may use an ordinary mobile to take advantage of digital payments. To take benefit of this service, one has to dial *9# from the mobile. He has to enter the first digits letters of his bank or first four letters of IFSC code.
(vii) Payment by Micro ATM : Similarly, by AADHAR enabled payment system (AEPs) through use of Aadhar card, we make payment through Aadhar card on POS (Micro ATM) machines by scanning our finger prints. For this, it is essential that our bank account is linked with our Aadhar number.
Question 3.
Write the meaning of cashless transaction, while discussing its advantages in detail. Write down its limitations.
Answer:
Its simple meaning can be drawn from the term ‘cashless transaction’. This type of transaction is made between buyer and seller without exchange of money. It is possible by transferring of money directly into the bank accounts. It is a part of e-commerce which started in India a decade ago.
Advantages of Cashless transactions : Cashless transactions are the need of time and are also essential, convenient and safe for the economy. In present time, this mode provides a better alternative. Witnessing the fast-developing economies of present time, it is a simple and convenient alternative.
Following are the important benefits of cashless transactions –
(i) Saving of wealth and time : Customer class is benefited the most from cashless transactions. Many types of bills have to be physically deposited on the counter. This involves time and money in travelling. Today, many types of discounts are available on online shopping.
(ii) Freedom from keeping money in cash: For big purchases on special occasions, one has to keep money in cash in heavy quantity either in purse or in pocket, which is very inconvenient, risky and unsafe. By adopting cashless transaction, one gets freedom from keeping cash.
(iii) Reduction of pressure on bank: By cultivating the habit of cashless transactions, unnecessary burden on banks is reduced. People often go to bank for the need of cash. Apart from this, bank has to keep less record of cash transactions. Due to computerization of banks, the money is automatically credited and debited in the account of the customer.
(iv) Increase in revenue : Due to cashless transaction, the money paid by customers is directly transferred into the account of the sellers. This has increased transparency in income declaration and has resulted in increase of tax revenue.
(v) Reduction in black marketing: If transaction becomes cashless, then it becomes easier for the government to assess the quantum of goods purchased and sold. This helps in identifying the stocks of different parties and in reduction of black marketing.
(vi) Restrictions on illegal activities : There are various transactions which are done with the objective of speculation. These transactions are not disclosed to the government. Major illegal activities are common in land and real estate. Registry is made for lesser amount and rest of the amount is paid in cash. This results in heavy loss of tax revenue to the government.
Limitations of Cashless Transaction
(i) Problem for illiterate class : The largest problem in proceeding ahead towards a cashless economy is the existence of a big illiterate and less educated class. This limits its advantages. Less educated class tries to avoid cashless transactions.
(ii) Lack of banking habits : It is a big problem of developing countries. People do not have banking habits. In a large country like India, under Prime Minister Jan Dhan Yojna, crores of bank accounts have been opened free of cost. But due to non-banking habits, these accounts are non-operative.
(iii) Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible. This type of fraud is due to negligence and carelessness.
(iv) Useless in many transactions : There are many trades where cashless transaction are not useful such as small businesses, workers, cobblers, washermen, vegetable vendors, milk vendors, daily workers, mechanics, cleaners, etc. Due to small amounts involved, they prefer taking money in cash.
(v) Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a great hurdle in the implementation of cashless transactions. In India, banking facilities are absent in several villages. In such state of affairs, cashless transactions become limited to the urban areas only.
(vi) Lack of effective laws to control cyber crimes: In India, presently, we lack effective rules and regulations for the protection of customers dealing in cashless transactions. In the absence of effective laws, cyber crimes take place during cashless transactions, and with ordinary laws it takes a long time and customers suffer.
Question 4.
Write short notes on :
(i) E-wallet
(ii) USSD
(iii)AEPS
(iv)NEFT
Answer:
(i) E-wallet : It is an App. E-wallet app has been issued by many banks for cashless transactions. Money is transferred to E-wallet account through ATM card or internet banking. We can make payment of bills from home by the help of E-wallets. This app can be downloaded in smartphones. By the use of E-wallet, cashless transaction are easier and safe.
(ii) USSD (Unstructured Supplementary Service Data) : Through this technique, we can make digital payments through ordinary phones also. We don’t require smart phones or internet enabled device. To avail the benefits of this service, one has to dial *9# from the mobile. He has to register the first digit number of his bank or first four letters of IFSC code. After this, he will receive MMID or MPIN. To make the payment, one must know the receipient’s mobile number or MMID number. It is a very simple and convenient method to perform cashless transactions.
(iii) AEPS [AADHAR Enabled Payment System (AEPS)] : We can make payment through Aadhar card on POS (Micro ATMs) machine by scanning our fingers prints. For this, it is essential that our bank account is linked with the Aadhar number. To avail this facility, one must know his/her account number and Aadhaar number.
(iv) NEFT (National Electronic Fund Transfer) : This system is a very popular technique of transferring fund. Through this technique, funds can be transferred to any customer or client in a very short time. This transfer takes some time, but in comparison to convenience it is lesser. This facility was started in November 2005. Today, it is available in almost every national level bank.
RBSE Class 12 Economics Chapter 25 Other Important Questions Answers
RBSE Class 12 Economics Chapter 25 Multiple-Choice Questions
Question 1.
Medium of cashless transaction is :
(a) Payment through internet banking
(b) Payment through swipe machine
(c) Payment through ATM machine
(d) All of these
Answers:
(d)
Question 2.
Name of App issued by government of India :
(a) E-wallet
(b) BHIM
(c) Amazon
(d) Axis pay
Answers:
(b)
Question 3.
By which technique cashless transaction is possible without using smart phone ?
(a) USSD
(b) BHIM
(c) Micro ATMs
(d) All of these
Answers:
(a)
Question 4.
Benefit(s) of cashless transaction is/are :
(a) Saving time and money
(b) Freedom from keeping cash
(c) Increase in Revenue
(d) All of these
Answers:
(d)
Question 5.
When did the government ban ₹ 1000 and ₹ 500 notes by demonetisation ?
(a) 9th November 2016
(b) 12th November 2016
(c) 9th November 2015
(d) 12th November 2015
Answers:
(a)
Question 6.
How much money has the government spent on promoting digital transactions and cashless transaction ?
(a) ₹ 100 crore
(b) ₹ 50 crore
(c) ₹ 94 crore
(d) ₹ 60 crore
Answers:
(c)
RBSE Class 12 Economics Chapter 25 Very Short Answer Type Questions
Question 1.
What is E-commerce ?
Answer:
E-commerce or E-business is an advanced and new technique of business in which business is operated through internet.
Question 2.
What benefits do buyers and sellers get from e-commerce ?
Answer:
Through E-commerce, buyers can purchase goods and services from home and sellers can sell their products world, wide.
Question 3.
In 21st century, opportunities and competition is provided for what type of business?
Answer:
For online business.
Question 4.
Write two mediums of cashless transactions.
Answer:
- Payment through cheque or draft.
- Payment through swipe machine.
Question 5.
How can customer take benefit of swipe machine ?
Answer:
Customers can use debit card cum ATM card and credit card to take benefit of swipe machine.
Question 6.
Write the full form of BHIM App.
Answer:
Bharat Interface for Money.
Question 7.
What type of App is BHIM App?
Answer:
BHIM App is a government App.
Question 8.
BHIM App is dedicated to which individual ?
Answer:
To Dr. Bhimrao Ambedkar.
Question 9.
Write the full name of USSD technique.
Answer:
Unstructured Supplementary Service Data.
Question 10.
Write the full form of AEPS.
Answer:
AADHAR Enabled Payment System.
Question 11.
Write one benefit of cashless transaction.
Answer:
Saving of time and money.
Question 12.
Write one limitation of cashless transactions.
Answer:
Problem for illiterate class.
Question 13.
Write one precaution to be taken during cashless transactions.
Answer:
While using net banking, keep updating your account statement.
Question 14.
When should mobile app be used?
Answer:
Use mobile app only after verifying it officially.
Question 15.
Why should we not change the registered mobile number in bank account ?
Answer:
Since all the messages of payments from our account are received on that number only.
RBSE Class 12 Economics Chapter 25 Short Answer Type Questions (SA-I)
Question 1.
Internet is important for which type of business ?
Answer:
For business involving basic infrastructure, consumers and for value-added services, internet is important.
Question 2.
At present, which medium is used for digitalisation?
Answer:
Presently, computers, telecommunication and cable TV network is used on a large scale for digitalisation.
Question 3.
What medium is used by commercial firms to advertise and sell their products?
Answer:
Commercial firms are using internet to advertise and sell their products.
Question 4.
In developing countries governments are promoting which type of economical transaction ?
Answer:
In the economy of developing countries, governments are promoting cashless transactions.
Question 5.
Cashless transaction is a medium of what ?
Answer:
Cashless transaction is a medium of E-commerce. In India, it is in practice for the last 10 years.
Question 6.
Write two advantages of cashless transactions.
Answer:
- Saving of money and time.
- Freedom from keeping money in cash.
Question 7.
Write four mediums of cashless transactions.
Answer:
Following are the four mediums of cashless transactions :
- Payment through cheque or bank draft.
- Payment through internet banking.
- Payment through swipe machine.
- Payment through mobile app.
Question 8.
Write four benefits of cashless transactions.
Answer:
Following are the four benefits of cashless transactions :
- Saving of time and money.
- Freedom from keeping cash.
- Reduction of pressure on banks.
- Reduction in black marketing.
Question 9.
Write four limitations of cashless transaction.
Answer:
Following are the four limitations of cashless transaction :
- Problems for illiterate class.
- Lack of banking habits.
- Apprehension of fraud.
- Useless in many transactions.
RBSE Class 12 Economics Chapter 25 Short Answer Type Questions (SA-II)
Question 1.
Why are developing economies encouraging cashless transactions ?
Answer:
Due to rapidly changing environment in the 21st century, economies of several countries are transforming from underdeveloped to developed. Currency is largely used in cash form for performing cash transactions in the economy. In this situation, circulation of cash money increases and demand for money also increases. The RBI has to bear huge cost in printing of currency notes, issue of currency and circulation of currency. Thus, in developing countries, governments are motivating the people for cashless transactions.
Question 2.
Explain E-commerce ?
Answer:
E-commerce or E-business is a new and advanced technique in which business is operated through internet. Through E-commerce, consumers can buy goods and services sitting at home only. Sellers can also sell their products and services anywhere in the world through e- commerce. In e-commerce, sellers can also get necessary feedback from consumers about their products.
Question 3.
Explain cashless transaction.
Answer:
Cashless transaction is an economic transaction without the use of money in cash form. Cashless transaction economy doesn’t mean shortage of cash; rather it indicates a culture of people settling transactions digitally.
Cashless modes of transactions are :
- Moblie wallet.
- Plastic money.
- Net banking.
Question 4.
Explain payment through cheque or draft.
Answer:
The simplest way for making cashless payment is payment through cheque or bank draft. In this system; buyer keeps the cheque book with himself and can make payment to anyone and anywhere through a valid cheque.
Question 5.
What is BHIM ?
Answer:
Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions. You can make direct payments to anyone with the BHIM App.
It was launched by Narendra Modi, the Prime Minister of India. It is named after Dr. Bhimrao R. Ambedkar and is intended to facilitate e-payments directly through the banks. It is a drive towards cashless transactions.
Question 6.
What is the importance of cashless transaction ?
Answer:
Increased cash transactions in the economy give rise to corruption and black marketing and also put pressure on the RBI for the printing of currency.
There are various advantages of cashless transactions. Cashless transactions help to save money and time. For example, many kinds of bills have to be physically deposited on the counter. This involves time and money spent in travelling.
To encourage the move towards cashless economy, the government has come up with a rash of discounts and freebies on digital transactions. In this way, by choosing any of the cashless medium options, a consumer may save money and time using a cashless mode.
Therefore, cashless transactions are the need of time and are also convenient and safe for the economy.
Question 7.
Explain the precautions that should be taken while dealing in digital transactions.
Answer:
Following are the precautions that should be taken while dealing in digital transactions:
- Never disclose your secret number of ATM cum debit card in response to the messages _ received from the banks or any other enquiry. Banks never ask for your secret PIN number.
- If you suspect foul play or have any doubt, immediately contact the banking authority.
- Never keep your secret PIN number in written form along with your credit/debit card.
- Maintain secrecy while using your ATM card on swipe machine.
- Use mobile app only after verifying it officially. .
Question 8.
What are the mediums of cashless transactions ?
Answer:
Following are the mediums of cashless transactions :
- Payment through cheque or bank draft.
- Payment through internet banking.
- Payment through swipe machine.
- Payment through ATM machine.
- Payment through Mobile app.
- Payment through USSD technique.
- Payment through Micro ATMs.
RBSE Class 12 Economics Chapter 25 Essay Type Questions
Question 1.
Explain the relevance of cashless transactions in context of India.
Answer:
Government of India, in November, 2016, announced to demonetize ₹ 500 and ₹ 1,000 denomination notes from the economy. Government issued currency notes of denomination ₹ 2000 and ₹ 500. In such a situation, traders and general public had some inconvenience. Government persuaded the people to go cashless. In such a large democracy and economy, it takes time in printing the currency and to manage it. It is also a costly affair. In such a situation, going cashless seemed to be a better alternative.
Many private companies provide cashback offers on casheless transactions. Government of India is also giving special discounts to promote cashless transactions and to sensitise the public about its benefits. Government, after demonetization, had spent ₹ 94 crore on advertisement to promote digital transactions and to popularize cashless transactions. Therefore, digital transaction is a simple and convenient method and also a necessary aid for a rapidly growing economy such as India.