Test: Financial Literacy- 7 - Class 6 MCQ

Linking of Aadhaar with Bank account means that the Aadhaar number is added to the bank account, which helps in identification and availing various government schemes and subsidies. It is called Aadhaar seeding.

Fixed Deposits earn a higher interest rate compared to savings or current accounts, as the amount is deposited for a fixed tenure and cannot be withdrawn before maturity without a penalty.

Bank drafts are issued by all types of banks - Private Sector Banks, Regional Rural Banks, and Public Sector Banks. It is a pre-paid negotiable instrument used for making secure payments.

Fixed Deposits can be withdrawn before maturity, but there may be penalties or charges for early withdrawal, and the interest amount may also be reduced.

PMJDY (Pradhan Mantri Jan Dhan Yojana) benefits include Accident insurance cover of Rs.1.00 lac, Life insurance cover of Rs.30,000/-, and Overdraft facility up to Rs.5,000/-.

Under PMSBY (Pradhan Mantri Suraksha Bima Yojana), the accidental death claim is available for Rs. 2 lac, providing accidental insurance cover to the policyholder.

Self Help Groups involve a group of 5 to 20 people who come together for collective savings, credit, and other economic activities. They promote regular saving habits and inter-lending among group members.

Interest on Fixed Deposit Receipts (FDRs) is compounded on a quarterly basis, which means that the interest earned is added back to the principal amount every three months.

An account under PMJDY can be opened by anyone, including minors above the age of 10 years, the head of the family, or the lady of the house.

The validity period of a cheque is 3 months from the date of issue, after which it becomes stale and cannot be encashed.

Payment of a cheque can be stopped by the drawer of the cheque, the person who has issued the cheque, by providing a stop payment instruction to the bank.

Contents of a locker are known only to the hirer, as the bank does not have any knowledge of the items kept in the locker by the customer.

Bank Mitra refers to Banking Correspondents engaged by banks to provide banking services in rural and remote areas where branches are not present. They act as a bridge between the bank and the customers.

Under PMSBY, the partial disability claim is available for Rs. 1 lac, providing financial assistance in case of loss of limbs or eyesight due to an accident.

Account payee cheques can be paid only by depositing the cheque amount in the bank account of the payee, ensuring that the payment is made only to the intended beneficiary.