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GS Paper IUPSC Prelims 2018
Banking & Financial System
Question No. 166Interactive Test Mode
00:00
+2-0.66

Q166. Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2018 • Indian Economy

Correct Answer: Option (C) — The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

Concept & Option Breakdown

Standard Reference Verified

Merchant Discount Rate (MDR) is the fee charged to a merchant by an acquiring bank/payment gateway for processing transactions made by customers using debit or credit cards or other digital payment instruments.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q166)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (C) — The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

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Frequently Asked Questions — UPSC Prelims 2018 Q166

What is the official answer for UPSC Prelims 2018 GS Paper I Question 166 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Banking & Financial System) question is Option (C): "The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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Previous QuestionWhich one of the following links all the ATMs in India?
Next QuestionConsider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct?