Banks and the Magic of Finance Class 7 True or False

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· Jul 03, 2026 · Reviewed & updated Sep 17, 2026 · 1 min read

Banks and the Magic of Finance Class 7 True or False


Banks and the Magic of Finance Class 7 True or False


Question 1.

The Reserve Bank of India (RBI) was established in 1949.

Answer:

False


Question 2.

A savings account typically earns more interest than a fixed deposit account.

Answer:

False


Question 3.

The Unified Payments Interface (UPI) is a modern payment system that allows for quick money transfers.

Answer:

True


Question 4.

Banks only provide services to individuals and do not cater to businesses.

Answer:

False


Question 5.

The National Bank for Agriculture and Rural Development (NABARD) supports rural development by funding banks that give loans for farming.

Answer:

True


Banks and the Magic of Finance Class 7 Match the Following


Question 1.

Match the following types of accounts with their descriptions.

Column AColumn B
A. Savings Account1. For businesses and traders with no interest
B. Current Account2. For individuals who save regularly
C. Fixed Deposit3. Used for withdrawing cash from ATMs
D. Debit Card4. One-time deposit for a fixed period

Options:

(a) A-2, B-1, C-4, D-3

(b) A-1, B-2, C-3, D-4

(c) A-3, B-4, C-1, D-2

(d) A-3, B-4, C-2, D-1

Answer:

Column AColumn B
A. Savings Account2. For individuals who save regularly
B. Current Account1. For businesses and traders with no interest
C. Fixed Deposit4. One-time deposit for a fixed period
D. Debit Card3. Used for withdrawing cash from ATMs


Question 2.

Match the following financial institutions with their functions.

Column AColumn B
A. NABARD1. Funds businesses in power and textiles
B. Industrial Finance Corporation2. Supports rural development
C. Reserve Bank of India (RBI)3. Offers savings schemes like NSC and PPF
D. Post Office4. Banker to banks

Options :

(a) A-2, B-1, C-4, D-3

(b) A-1, B-2, C-3, D-4

(c) A-3, B-4, C-1, D-2

(d) A-3, B-4, C-2, D-1

Answer:

Column AColumn B
1. NABARD2. Supports rural development
2. Industrial Finance Corporation1. Funds businesses in power and textiles
3. Reserve Bank of India (RBI)4. Banker to banks
4. Post Office3. Offers savings schemes like NSC and PPF