Introduction / Context:
Banking awareness is an important part of many competitive exams. Terms like plastic money, smart card, and smart money are frequently tested. The phrase Smart Money is often used in banking and marketing material to refer to particular payment instruments. This question checks whether you know which option matches the common exam usage of the term.
Given Data / Assumptions:
- The phrase in focus is Smart Money.
- Options include credit card, internet banking, e banking, and cash with the public.
- The question asks how this term is used in banking context, not in stock market slang.
- We assume the standard usage followed in banking awareness guides for exams.
Concept / Approach:
In many banking questions, Smart Money refers to credit cards. The idea is that instead of carrying physical cash, customers carry a small card that allows them to access a predetermined credit limit. Swiping or tapping the card is marketed as a smart way to pay. While in some other contexts smart money can mean money invested by informed investors, in bank exam multiple choice questions the expected association is with credit cards.
Step-by-Step Solution:
Step 1: Recall from banking awareness notes that credit cards, debit cards, and smart cards are often called plastic money or smart money in simple language.
Step 2: Among the options, identify which one is a specific payment instrument rather than a general service.
Step 3: Note that credit card is a physical card enabling payment by borrowing from the issuing bank.
Step 4: Internet banking and e banking are service channels, not usually labelled as smart money in exam terminology.
Step 5: Cash with the public is physical currency notes and coins, which obviously is not smart money in this sense. Therefore choose credit card.
Verification / Alternative check:
Most practice questions and solved papers in banking awareness sections clearly give the explanation that smart money refers to credit cards. Sometimes, this is contrasted with plastic money, which is also used for credit or debit cards. The repeated appearance of this interpretation in exam material confirms that credit card is the correct choice in this context, even though the phrase can have other specialised meanings in financial markets.
Why Other Options Are Wrong:
Internet banking: This is an electronic channel to operate bank accounts using computers or phones, but it is not commonly labelled smart money in simple banking MCQs.
Electronic banking e banking: This is a broad term for all electronic financial services. Again, smart money in exam usage points more specifically to cards.
Cash held by the public: This is physical currency and is better described as money supply in circulation, not as smart money.
Common Pitfalls:
Because the phrase sounds modern and digital, some students pick internet banking or e banking. Others may have seen smart money used in stock market articles and think of institutional investors. The way to avoid this confusion is to remember that in standard bank exam questions, smart money is equated with credit cards, which are marketed as a smart payment tool instead of carrying cash.
Final Answer:
In banking awareness, Smart Money is most commonly used to refer to
credit card based payments.
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