SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 16. What does KYC stand for in banking?
Know Your Client
Know Your Customer
Keeping Your Credentials
Keeping Your Cash
Q 17. Which documents are generally accepted for complying with KYC norms?
Birth certificate and school ID
Passport and driver's license
Voter ID and utility bill
Bank statement and credit card statement
Q 18. What is the key feature of a Savings Bank (SB) Account?
High interest rates
Fixed term deposits
Tax deducted at source (TDS) on interest
Limited withdrawals per month
Q 19. Who can open a Basic Savings Bank Deposit Account (BSBDA)?
Only senior citizens
Only individuals with high credit scores
Individuals and minors (through their guardian)
Only individuals with a fixed income
Q 20. What is a key characteristic of a Fixed Deposit (FD) Account?
Highly liquid
Zero balance requirement
Subject to Tax Deducted at Source (TDS)
Interest rate fluctuates daily
Q 21. How does a Recurring Deposit (RD) Account differ from a Savings Bank Account?
Higher interest rates
No tax deductions
Fixed term deposits
Requires monthly deposits for a predetermined term
Q 22. What additional banking facilities can minors above the age of 10 avail in a Savings Bank Account?
Investment in stocks
Credit card facility
Cheque book facility
Foreign currency exchange
Q 23. What is a key benefit of a Basic Savings Bank Deposit Account (BSBDA)?
High interest rates
Tax exemptions
Zero balance requirement
Free issuance of ATM card and passbook
Q 24. What distinguishes a Special Bank Term Deposit Scheme from regular fixed deposits?
Higher interest rates
Longer tenure
Tax savings benefits
No premature withdrawal allowed
Q 25. What is the purpose of introducing the Basic Savings Bank Deposit Account (BSBDA)?
To encourage high-value deposits
To promote financial inclusion
To provide exclusive benefits to senior citizens
To offer higher interest rates
Q 26. What is the primary objective of the Know Your Customer (KYC) process in banking?
To increase interest rates
To prevent identity theft
To provide tax exemptions
To promote foreign investments
Q 27. What distinguishes a Fixed Deposit (FD) Account from a Savings Bank (SB) Account?
Higher interest rates
No withdrawal restrictions
Highly liquid
No tax deductions on interest earned
Q 28. Who is eligible to open a Basic Savings Bank Deposit Account (BSBDA)?
Only individuals with high credit scores
Only government employees
Only senior citizens
Only individuals with a fixed income
Q 29. What is a characteristic feature of a Recurring Deposit (RD) Account?
Fixed term deposits
Unlimited withdrawals
No tax deductions
Allows premature withdrawal with a penalty
Q 30. What distinguishes a payment bank from traditional banks?
Provides credit cards
Accepts recurring deposits
Offers loan and advance facilities
Provides fixed deposit facilities