Banks and the Magic of Finance Class 7 MCQ Questions SST Chapter 8

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Class 7 Banks and the Magic of Finance MCQ with Answers

MCQ on Banks and the Magic of Finance Class 7

Class 7 SST Chapter 8 Banks and the Magic of Finance MCQ Questions with Answers

Question 1.
Banks provide several important services to the public. Which one of the following is a primary function of a bank?
(a) Repairing machines
(b) Issuing passports
(c) Conducting school examinations
(d) Accepting deposits and giving loans
Answer:
(d) Accepting deposits and giving loans

Question 2.
Which of the following enables people to make instant digital payments using their mobile phones?
(a) Cheque book
(b) UPI
(c) Deposit slip
(d) Demand draft
Answer:
(a) Cheque book

Question 3.
The organisation that regulates all banks in India is:
(a) State Bank of India
(b) World Bank
(c) Reserve Bank of India
(d) Finance Ministry
Answer:
(c) Reserve Bank of India

Question 4.
A fixed deposit generally provides a
(a) Higher interest rate
(b) Zero interest rate
(c) Lower interest rate
(d) Penalty-free withdrawal
Answer:
(a) Higher interest rate

Question 5.
Which of the following details should never be shared with anyone?
(a) Mobile number
(b) OTP
(c) Home address
(d) Email ID
Answer:
(b) OTP

Question 6.
Shares represent:
(a) A loan from the government
(b) A type of tax
(c) A fixed deposit
(d) A portion of ownership in a company
Answer:
(d) A portion of ownership in a company

Question 7.
ATMs help customers to:
(a) Buy vegetables
(b) Print textbooks
(c) Withdraw money anytime
(d) Travel abroad
Answer:
(c) Withdraw money anytime

Question 8.
The helpline number to report digital fraud is:
(a) 100
(b) 112
(c) 1930
(d) 1800
Answer:
(c) 1930

Question 9.
Which one of the following is an example of digital banking?
(a) Paying through UPI
(b) Using a passbook
(c) Filling deposit slips
(d) Counting cash manually
Answer:
(a) Paying through UPI

Question 10.
Banks earn their main income from:
(a) Selling groceries
(b) Providing electricity
(c) Conducting sports events
(d) Charging interest on loans
Answer:
(d) Charging interest on loans

Banks and the Magic of Finance Class 7 Assertion-Reason Questions

There are two statements Assertion (A) and Reason (R). Mark your answer according to the codes given below.

Question 1.
Assertion (A): Digital payments have become extremely popular in India in recent years.
Reason (R): Digital payments require people to visit the bank physically.
Codes:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
Answer:
(c) (A) is true, but (R) is false.
Explanation: Digital payments are popular because they are fast, convenient and do not require visiting the bank. (R) is incorrect because digital payments work through mobile phones and the internet.

Question 2.
Assertion (A): Banks play a major role in supporting economic development.
Reason (R): Banks give loans to farmers, businesses, and industries to help them grow.
Codes:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation: By giving loans, banks help people expand their work, which leads to economic development, so (R) correctly explains A.

Question 3.
Assertion (A): One must be very careful when sharing financial information online.
Reason (R): Fraudsters may use fake calls, messages, or links to steal money from accounts.
Codes:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
Answer:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation: Cyber criminals use many tricks to obtain personal information. Being careful prevents digital fraud.

Banks and the Magic of Finance Class 7 Fill in the blanks

1. The RBI is the ………… bank of India.
Answer:
central

2. A savings account helps people to………… money.
Answer:
save

3. A fixed deposit offers a ………… rate of interest.
Answer:
higher

4. A secret ………… is needed to withdraw money from an ATM.
Answer:
PIN

5. UPI allows ………… digital payments.
Answer:
instant

6. A cheque must be signed by the………… of the account.
Answer:
holder

7. Cyber fraudsters often trick people into revealing their …………
Answer:
OTP

8. A share represents ………… in a company.
Answer:
ownership

9. Money deposited in a bank earns ………….
Answer:
interest

10. The emergency helpline for reporting online fraud is ………….
Answer:
1930

Banks and the Magic of Finance Class 7 True or False

1. Banks store every rupee deposited by customers and do not use it to give loans.
Answer:
False-Reason: Banks keep only a part of the deposits as a reserve and use the remaining amount to give loans to people and businesses so that money circulates in the economy.

2. UPI allows people to make payments instantly at any time of the day.
Answer:
True-Reason: UPI works 24×7 and transfers money within seconds through mobile phones, making it fast and convenient.6

3. A PIN should always be kept private to ensure digital safety.
Answer:
True-Reason: Sharing a PIN can allow others to misuse the bank account or withdraw money without permission.

4. Shares always give profit because their prices never fall.
Answer:
False-Reason: Share prices can rise or fall depending on company performance and market conditions, so profit is not guaranteed.

5. A savings account helps people save money and earn interest.
Answer:
True-Reason: Banks pay interest on savings deposits, encouraging people to keep their money safe in the bank.

Banks and the Magic of Finance Class 7 Match the following

Question 1.

(a) 1-(iii), 2-(v), 3-(vi), 4-(i), 5-(ii), 6-(iv)
(b) 1-(i v), 2-(vi), 3-(i), 4-(i i i), 5-(i i), 6-(v)
(c) 1-(v), 2-(iv), 3-(ii), 4-(vi), 5-(i), 6-(iii)
(d) 1-(iv), 2-(iii), 3-(i), 4-(ii), 5-(vi), 6-(v)
Answer:
(d) 1-(iv), 2-(iii), 3-(i), 4-(ii), 5-(vi), 6-(v)

Column A	Column B
1. ATM 2. UPI 3. RBI 4. Fixed Deposit 5. Cheque 6. PIN	(iv) Cash withdrawal (iii) Digital payment system (i) Central bank of India (ii) Provides higher interest for a fixed time (vi) Written order to pay someone (v) Secret number for safety

 

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