🎯 Practice daily MCQs to improve your finance knowledge
Q1. What is a bank?
A. A shopping place
B. A financial institution
C. A government office
D. A company
Answer: B
Explanation: A bank is a financial institution that accepts deposits, provides loans, and offers other financial services.
Q2. Which of the following is a type of bank account?
A. Savings Account
B. Shopping Account
C. Travel Account
D. Gaming Account
Answer: A
Explanation: A savings account is used to deposit money and earn interest safely.
Q3. What does ATM stand for?
A. Any Time Money
B. Automatic Transfer Machine
C. Automated Teller Machine
D. Any Transfer Mode
Answer: C
Explanation: ATM stands for Automated Teller Machine, used for withdrawing cash and basic banking services.
Q4. Which bank is the central bank of India?
A. SBI
B. RBI
C. PNB
D. HDFC
Answer: B
Explanation: The Reserve Bank of India (RBI) controls and regulates all banks in India.
Q5. What is interest in banking?
A. Bank charge
B. Extra money earned or paid
C. Tax amount
D. Loan amount
Answer: B
Explanation: Interest is the extra money you earn on savings or pay on loans.
Q6. What is a loan?
A. Money saved
B. Money borrowed
C. Money invested
D. Money donated
Answer: B
Explanation: A loan is money borrowed from a bank that must be repaid with interest.
Q7. What is a debit card used for?
A. Borrowing money
B. Investing money
C. Paying using bank balance
D. Saving money
Answer: C
Explanation: A debit card allows you to spend money directly from your bank account.
Q8. What is online banking?
A. Banking in office
B. Banking through internet
C. Banking through phone call only
D. Banking through ATM only
Answer: B
Explanation: Online banking allows users to access bank services through the internet anytime.
Q9. What is a fixed deposit (FD)?
A. Daily expense
B. Short-term loan
C. Investment for fixed time
D. Bank fee
Answer: C
Explanation: Fixed deposit is an investment where money is deposited for a fixed period with guaranteed returns.
Q10. Why is KYC important in banking?
A. To increase charges
B. To verify customer identity
C. To reduce interest
D. To close the account
Answer: B
Explanation: KYC (Know Your Customer) helps banks verify the identity of customers and prevent fraud.
👉 Want to improve your basics further?
Check out: Top 10 Finance MCQs with Answers (2026)