Banking Services (VSAQs)
Commerce-2 | 3. Banking Services – VSAQs:
Welcome to VSAQs in Chapter 3: Banking Services. This page includes the most important FAQs from previous exams. Each answer is provided in simple English and presented in the exam format. This approach helps you prepare effectively and aim for top marks in your final exams.
VSAQ-1: What is Mobile Banking?
Mobile Banking is like having your bank right in your pocket. Imagine you need to check your account balance, transfer money to a friend, or pay a bill, but you don’t have time to visit the bank. With mobile banking, you can do all these things and more using your smartphone or tablet. Banks offer this service through apps that you can download, making it super convenient to manage your money from anywhere at any time. You can even deposit checks just by taking a photo of them! To keep your information safe, mobile banking apps use security measures like encryption and biometric authentication (like using your fingerprint or face ID) to ensure that your data is protected.
VSAQ-2: What is a Savings Account?
A Savings Account is like a safe place where you can keep your money while earning a little interest on it. Think of it as a piggy bank, but in the bank, where your savings can grow over time. Savings accounts are ideal for individuals who want to store their money securely while still having easy access to it when needed. These accounts typically offer a lower interest rate compared to other types of deposits, like fixed deposits. For example, the current interest rate provided by SBI for a savings account is 2.75% per annum. It’s a great option for professionals, middle-class families, and anyone looking to keep their money safe while earning a bit of extra cash on their savings.
VSAQ-3: What is a Credit Card?
A Credit Card is like a handy tool that lets you buy things now and pay for them later. Imagine you want to buy something, but you don’t have enough cash at the moment. With a credit card, you can make the purchase and then pay for it at a later date, usually at the end of the month. Credit cards can be used both domestically and internationally, making them convenient for all kinds of transactions. However, the bank gives you a credit card based on your creditworthiness, which means they check if you’re likely to pay back the money on time. Credit cards offer flexibility and convenience, but it’s important to use them responsibly to avoid getting into debt.