15 extra multiple-choice questions for Electronic Payment Systems (12th Standard Computer Applications, Samacheer Kalvi), beyond the ones printed in the textbook — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
Who first mentioned the term 'credit card' in the sci-fi novel 'Looking Backward' in 1887?
- A. Frank McNamara
- B. Ralph Schneider
- C. Edward BellamyCorrect
- D. Michael Aldrich
Explanation. The term credit card was first mentioned in 1887 in the sci-fi novel 'Looking Backward' by Edward Bellamy.
Q2
Which electronic payment card operates on the settlement principle of 'pay before'?
- A. Debit card
- B. Credit card
- C. Stored value cardCorrect
- D. Charge card
Explanation. Stored value cards operate on a 'pay before' settlement method where money is pre-loaded onto the card.
Q3
What is the standard width and thickness of a payment card under the ISO/IEC 7810 ID-1 standard?
- A. 85.60 mm width and 0.76 mm thicknessCorrect
- B. 53.98 mm width and 0.76 mm thickness
- C. 85.60 mm width and 2.88 mm thickness
- D. 53.98 mm width and 3.48 mm thickness
Explanation. Universal standard dimensions for payment cards specify a width of 85.60 mm and a thickness of 0.76 mm.
Q4
Which bank of the merchant is responsible for receiving payment on behalf of the merchant and sending authorization requests to the issuing bank?
- A. Issuer
- B. AcquirerCorrect
- C. Bearer
- D. Central Bank
Explanation. The acquirer is the merchant's bank that receives payments on behalf of the merchant and forwards authorization requests.
Q5
What does the first digit of a credit card number represent?
- A. Bank Identification Number
- B. Major Industry IdentifierCorrect
- C. Account Number
- D. Check digit
Explanation. The first digit of a credit card number is the Major Industry Identifier (MII), which identifies the category of the issuer.
Q6
Which algorithm is used to validate the last digit (check digit) of a credit card number?
- A. RSA Algorithm
- B. Luhn AlgorithmCorrect
- C. Diffie-Hellman Algorithm
- D. SHA-1 Algorithm
Explanation. The final digit of a credit card number is a check digit calculated using the Luhn algorithm to detect input errors.
Q7
In February 1950, which cardboard-based card was launched that was initially accepted in only 27 restaurants?
- A. Visa Card
- B. MasterCard
- C. Diners Club CardCorrect
- D. Rupay Card
Explanation. Frank McNamara and Ralph Schneider created the paper-cardboard Diners Club card in 1950, initially accepted in 27 restaurants.
Q8
A Chennai metro rail travel card is an example of which type of stored value card?
- A. Open loop stored value card
- B. Closed loop stored value cardCorrect
- C. Multipurpose stored value card
- D. Contactless credit card
Explanation. A Chennai metro rail travel card is a closed loop or single-purpose stored value card used only within a specific system.
Q9
What type of cryptographic primitives and verification methods are primarily used in micro electronic payment systems to keep transaction costs low?
- A. Public key cryptography and real-time online verification
- B. Lightweight cryptographic primitives and off-line verificationCorrect
- C. Asymmetric encryption and continuous multi-factor authentication
- D. Symmetric key cryptography and real-time bank employee intervention
Explanation. Micro payment systems minimize costs by utilizing lightweight cryptographic primitives and off-line payment verifications.
Q10
In India, National Electronic Funds Transfer (NEFT) was initiated in November 2005 by which organization?
- A. National Payments Corporation of India (NPCI)
- B. Reserve Bank of India (RBI)Correct
- C. Institute for Development and Research in Banking Technology (IDRBT)
- D. State Bank of India (SBI)
Explanation. NEFT is an electronic funds transfer system initiated by the Reserve Bank of India (RBI) in November 2005.
Q11
Which institution is responsible for establishing and maintaining the National Electronic Funds Transfer (NEFT) system in India?
- A. National Payments Corporation of India (NPCI)
- B. Institute for Development and Research in Banking Technology (IDRBT)Correct
- C. Reserve Bank of India (RBI)
- D. Ministry of Finance
Explanation. While initiated by the RBI, NEFT was established and is maintained by the IDRBT.
Q12
Which of the following describes a key distinction between NEFT and RTGS transactions in India?
- A. RTGS transactions are processed in real-time, while NEFT transactions are processed in batchesCorrect
- B. NEFT is only used for international transactions, while RTGS is for domestic transfers
- C. RTGS does not require an IFSC code, whereas NEFT requires it
- D. NEFT is regulated by the RBI, while RTGS is unregulated
Explanation. RTGS operates on a real-time settlement basis, whereas NEFT transfers are processed in periodic batches.
Q13
What does the abbreviation VPA stand for in the context of Unified Payments Interface (UPI)?
- A. Virtual Payment Association
- B. Virtual Payment AddressCorrect
- C. Verified Payment Account
- D. Variable Payment Asset
Explanation. VPA stands for Virtual Payment Address, which is a unique identifier used to send and receive money via UPI.
Q14
Which real-time payment system serves as the foundational basis on which Unified Payments Interface (UPI) was developed?
- A. National Electronic Funds Transfer (NEFT)
- B. Immediate Payment Service (IMPS)Correct
- C. Real Time Gross Settlement (RTGS)
- D. Electronic Clearing Service (ECS)
Explanation. UPI was developed on the basis of Immediate Payment Service (IMPS) to enable instant inter-bank transfers.
Q15
Which USSD service code allows users without internet access to utilize UPI services within India?
- A. *99#Correct
- B. *121#
- C. *100#
- D. *999#
Explanation. Users without an internet connection can dial *99# to access UPI services via Unstructured Supplementary Service Data.
About these Electronic Payment Systems questions
These are the Additional multiple-choice questions for Electronic Payment Systems from the Tamil Nadu State Board (Samacheer Kalvi) 12th Standard Computer Applications syllabus. Each question shows the correct option and an original, step-by-step explanation so you understand the method, not just the answer. Use the answer key above to jump to any question, then take the practice test to check yourself under exam-like conditions.
Frequently asked questions
How many MCQs are there in Electronic Payment Systems?
This chapter has 15 book-back multiple-choice questions, each with the correct answer and a step-by-step explanation.
Are these 12th Standard Computer Applications MCQs free to practise online?
Yes. Every question, answer and explanation here is free, and you can also take them as a timed practice test.
Where can I find the Electronic Payment Systems book-back answers?
The correct option for each question is highlighted on this page with a worked explanation, plus a quick answer-key summary at the top.
