Digital Payments and e-Wallets MCQs

Question 1
1. Which of the following best defines a digital payment?

(A) By paying exclusively with cash.

(B) By visiting a bank branch to complete a transaction.

(C) By electronically transferring funds using digital channels.

(D) By using a mix of digital and physical currency in one transaction.

Question 2
2. Which of the following is an example of an e-wallet?

(A) A mobile application like PayPal or Apple Wallet that stores payment information digitally.

(B) A paper voucher redeemable at a store counter.

(C) A digital card that only mimics credit card features without integrating multiple payment options.

(D) A physical wallet made of leather.

Question 3
3. A small shop owner decides to accept digital payments using a mobile wallet. What is one likely advantage of this decision?

(A) Increased reliance on manual cash counting.

(B) Faster transactions and reduced need for handling physical cash.

(C) Eliminating the need to maintain a bank account entirely.

(D) Higher risk due to carrying digital devices during transactions.

Question 4
4. What is one common security measure used in online transactions?

(A) Leaving personal financial information unprotected.

(B) Relying solely on printed receipts for transaction security.

(C) Using open Wi-Fi networks without encryption.

(D) Encryption of data during the transaction.

Question 5
5. What factor has significantly contributed to the rise of cashless payments?

(A) A growing dependence on physical currency for processing online transactions.

(B) Reduced use of smartphones and inadequate network infrastructure.

(C) Digital payment methods that only support local transactions.

(D) Increased internet access and the widespread adoption of mobile banking.

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