Test: Financial Literacy- 5 - Class 6 MCQ

Banks are considered the safest place to keep our savings because they provide security to our money, offer interest on the deposits, and allow us to withdraw our money anytime we need it.

KYC (Know Your Customer) is a process used by banks and other financial institutions to verify the identity and background of their customers. This helps in preventing fraud, money laundering, and other illegal activities.

Life insurance is a type of insurance that provides financial protection to the insured person's family in case of their untimely death. It ensures that the insured person's dependents are taken care of financially in their absence.

Banks provide loans for various purposes such as home loans, car loans, and education loans, making it easier for individuals to fulfill their needs and aspirations.

Banks are considered the safest place for keeping money because they provide security, are regulated by the government, and are insured against losses.

A bank passbook is a document issued by the bank to its customers, which contains the transaction details of their bank account and shows the current balance in the account.

Banks charge interest on loans they provide to customers, while also paying interest on deposits made by customers. This is how banks make a profit and sustain their operations.

In a Recurring Deposit account, a fixed sum of money is deposited every month for a fixed tenure. The interest on these deposits is paid at the Fixed Deposit Rate, which is usually higher than the interest rate on a regular savings account.

ATM passwords, or Personal Identification Numbers (PINs), should never be shared with anyone, not even with family members, as this can compromise the security of your bank account and make you vulnerable to fraud.

Loans from money lenders are often characterized by high interest rates, lack of proper accounting, and a lack of transparency. This makes borrowing from money lenders riskier and less desirable compared to borrowing from banks.

General insurance relates to insurance policies that provide coverage against various risks such as fire, theft, and burglary. These policies protect individuals and businesses from financial losses caused by unforeseen events.

Security threads are present in all currency notes, including Rs. 50, Rs. 100, and Rs. 500 notes. The security thread is a special feature that makes it difficult to counterfeit the currency.
 

Gold and silver ornaments should be kept in bank lockers because they provide a safe and secure storage option, protecting your valuables from theft or damage.

Banks pay interest on deposits made by customers as a way to encourage saving and as a reward for trusting the bank with their money.

Internet banking refers to the operation and management of a bank account through the internet, allowing customers to access their account information, make transactions, and perform various banking tasks from anywhere and at any time.