Banks and the Magic of Finance Class 7 MCQ
Banks and the Magic of Finance Class 7 MCQ
Banks and the Magic of Finance Class 7 MCQ
Question 1.
What is a key advantage of using electronic payment systems like UPI?
(a) They require physical cash to complete transactions.
(b) They allow for instant transfers of money between accounts.
(c) They are only available during banking hours.
(d) They do not require a bank account.
Answer:
(b) They allow for instant transfers of money between accounts.
Question 2.
Identify the appropriate option to fill in the empty boxes:
| Payment Method | Characteristics |
| Cheque | Allows direct payment from a bank account to a payee. |
| ? | Enables cash withdrawal from ATMs and payments at retail stores. |
| ? | Facilitates instant money transfer between bank accounts without physical visits. |
(a) Debit Card, Electronic Payment Methods
(b) Cash, Mobile Wallets
(c) Credit Card, Cash
(d) Mobile Wallets, Cash
Answer:
(a) Debit Card, Electronic Payment Methods
Question 3.
In recent years, the introduction of digital payment systems like UPI has transformed the way transactions are conducted in India. This shift has led to a significant increase in cashless transactions. Which of the following is the most significant benefit of using digital payment systems like UPI for everyday transactions?
(a) Increased reliance on cash transactions
(b) Enhanced security and convenience in payments
(c) Decreased accessibility for rural populations
(d) Higher transaction fees compared to cash payments
Answer:
(b) Enhanced security and convenience in payments
Question 4.
Identify the appropriate option to fill in the empty boxes:
| Financial Infrastructure | Functions |
| Banks | Collect deposits and provide loans. |
| ? | Facilitates the buying and selling of shares. |
| ? | Offers various savings schemes and postal services. |
(a) Stock Market, Post Offices
(b) Insurance Companies, Credit Unions
(c) Mutual Funds, Banks
(d) Stock Market, Insurance Companies
Answer:
(a) Stock Market, Post Offices
Question 5.
Priya receives a call from someone claiming to be from her bank. The caller says there has been suspicious activity on her account and asks her to verify her account number and One-Time Password (OTP) for security purposes. What should Priya do?
(a) Provide her account number and OTP to the caller to resolve the issue.
(b) Hold and call her bank's official customer service number to verify if the call was legitimate.
(c) Ignore the call and do nothing.
(d) Ask the caller for their name and employee ID before deciding.
Answer:
(b) Hold and call her bank's official customer service number to verify if the call was legitimate.
Question 6.
Priya has saved ₹ 20,000 and is considering investing in the stock market. She has heard that investing in shares can help her money grow over time. She is particularly interested in a tech company that has been performing well and has a good reputation.
What should Priya consider before investing her money in shares of the tech company?
(a) The company's past performance and future growth potential
(b) The colour of the company's logo
(c) How many employees the company has
(d) The price of the company's products
Answer:
(a) The company's past performance and future growth potential
Question 7.
Rohan invested in shares of a popular automobile company. After a few months, he notices that the share prices have dropped significantly. He is worried and unsure whether to sell his shares or hold onto them.
What could be a reason for the drop in share prices of the automobile company?
(a) The company launched a new car model that was well-received
(b) There was a sudden increase in raw material costs affecting production
(c) The company decided to give all employees a bonus
(d) The company is planning to open a new showroom
Answer:
(b) There was a sudden increase in raw material costs affecting production
Case Study
In ancient India, temples acted like banks. Although they did not accept public deposits like modern banks, they lent money to artisans, merchants, and the local government for building infrastructure. Contracts between the temples and the concerned party were etched on copper plates.
These have survived to give us a glimpse of how they functioned. One such example is an inscription from Kodumbalur in Tamil Nadu, dating back to the 13th century, which refers to communities that borrowed money from the Tirumudukunramudaiya-Nayanar temple with an agreement to pay interest.
Question 1.
What was the primary function of temples in ancient India related to financial activities?
Answer:
Lending money.
Question 2.
What type of document was used to record financial agreements in ancient temples?
Answer:
Copper plates.
Question 3.
Compare the role of ancient temples in financing infrastructure to modern banks. Provide two key points.
Answer:
- Functionality: Ancient temples provided loans to artisans and local governments, similar to how modern banks offer loans to individuals and businesses for infrastructure projects.
- Documentation: While ancient agreements were recorded on copper plates, modern banks use formal contracts and digital records to ensure transparency and legal compliance.