Exercise Quiz & Test – 24


1. If a bank ties up with a retail vendor and then both of them sponsor a credit card, then such card would be known as_____
a. Retail Credit Card
b. Vendor card
c. Co – Branded Card
d. Cash Back Card

View Answer
c. Co- Branded Card
* It is a special type of credit card which is sponsored by both the credit card issuing company and the participating retail company or vendor. Co-branded credit card carries special deals and savings from the participating merchants.

2. In terms of Banking Terminology, Affinity Card refers to ______
a. The Credit Cards that are linked to special organizations
b. The Credit Cards with zero interest rate on repayments
c. The Credit Cards exclusively for the Bank’s employees
d. All above the above

View Answer
a. The Credit Cards that are linked to special organizations
* Credit cards linked to special organizations like sports clubs, exclusive clubs and charities. Affinity credit cards can also help raise funds, when a part of income from every transaction goes toward the benefit of relevant organization.

3. From which country, the concept of Credit Card originated?
a. UK
b. USA
c. France
d. Australia

View Answer
b. USA
* The use of Credit Card first started in 1920s in United States of America for selling the fuel to the automobile owners. Later, it reached the customers when Diners Club was launched in early 1950s. In 1958, the Bank of America issued the BankAmericard in the California state and this is known to be the first successful modern credit card.

4. The business entity that is authorized to accept cards for the payment of goods and services is called?
a. Issuer
b. Acquirer
c. Merchant
d. Authorised Issuer

View Answer
c. Merchant
* Merchant or Point of sale is any business entity that is authorized to accept cards for the payment of goods and services; it can be a brick and mortar shop or a website.

5.The international standard which defines the shape and size of the I-Cards is ______
a. ISO/IEC 5200
b. ISO/IEC 9910
c. ISO/IEC 14000
d. ISO/IEC 7810

View Answer
d. ISO/IEC 7810

* ISO/IEC 7810 is the international standard which defines the shape and size of the I-Cards including debit / credit cards.

6. Which is the first credit card facility to be recognised worldwide?
a. Visa Card
b. Maestro Card
c. Master Card
d. Diner Card

View Answer
a. Visa Card
* In 1977, Visa was adopted internationally and became the first credit card facility to be recognised worldwide. It is a conditional authorization given by a competent authority of a country for a person who is not a citizen of that country to enter its territory and to remain there for limited duration.

7. With reference to the prepaid credit cards, which among the following is / are correct statements?
1. credit facility is offered for the purchaser of the card
2. no interest charged from the purchaser of the card
3. no purchasing fee and monthly fees charged before an arbitrary time period Select the correct option from the codes given below:

a. Only 1 & 2
b. Only 2 & 3
c. Only 1 & 3
d. 1 & 2 & 3

View Answer
b. Only 2 & 3
* The Prepaid cards require the cardholder to load money onto the card before the card can be used. Purchases are withdrawn from the card’s balance. The spending limit does not renew until more money is loaded onto the card. Some points in context of prepaid cards.

8. What does the cirrus logo on ATM / debit cards signifies__?
a. have cash access facility anywhere in India only
b. have cash access facility outside the India only
c. have cash access facility in or outside the India
d. have cash access facility in and outside the India

View Answer
d. have cash access facility in and outside India
* The Cirrus is one of the logos found on the ATM or debit card and provides the card owner worldwide cash access facility . The Cirrus ATM network gives immediate access to the card owner’s funds available in the local currency when travelling abroad. Cirrus logo provides cash access facility in and outside the India .

9.The Secured credit cards are generally available to the person with _____:

a. Strong credit history
b. Poor Credit History
c. High Net worth Income
d. Government Job

View Answer
b. Poor Credit History
* The Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. These cards require a security deposit to be placed on the card. The credit limit on a secured credit card is typically equal to the deposit made on the card, but it could be more in some cases. These cards are available with both Visa and MasterCard logos on them.

10. What is the time period during which no interest is charged on a credit card?
a. Grace period
b. Term period
c.Loan period
d. Sanction Period

View Answer
a. Grace period
* A credit card’s grace period is the time the customer has to pay the balance before interest is charged to the balance. Grace periods vary, but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. If a customer is late paying the balance, finance charges will be calculated and the grace period does not apply.