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The Prize Chits and Money Circulation Schemes (Banning) Act, 1978

The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 was enacted to ban prize chit and money circulation schemes. This quiz will test your knowledge about the act and its provisions.

5 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the main objective of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978?

  1. To promote prize chit and money circulation schemes.
  2. To regulate prize chit and money circulation schemes.
  3. To ban prize chit and money circulation schemes.
  4. To provide legal framework for prize chit and money circulation schemes.
Question 2 Multiple Choice (Single Answer)

What is a prize chit scheme?

  1. A scheme in which prizes are awarded to participants based on their luck.
  2. A scheme in which prizes are awarded to participants based on their skill.
  3. A scheme in which prizes are awarded to participants based on their investment.
  4. A scheme in which prizes are awarded to participants based on their participation.
Question 3 Multiple Choice (Single Answer)

What is a money circulation scheme?

  1. A scheme in which money is circulated among participants in a chain-like manner.
  2. A scheme in which money is circulated among participants in a pyramid-like manner.
  3. A scheme in which money is circulated among participants in a random manner.
  4. A scheme in which money is circulated among participants in a legal manner.
Question 4 Multiple Choice (Single Answer)

What are the main provisions of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978?

  1. Banning of prize chit and money circulation schemes.
  2. Regulation of prize chit and money circulation schemes.
  3. Providing legal framework for prize chit and money circulation schemes.
  4. Promoting prize chit and money circulation schemes.
Question 5 Multiple Choice (Single Answer)

What is the punishment for violating the provisions of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978?

  1. Imprisonment for a term of up to 3 years and a fine of up to Rs. 10,000.
  2. Imprisonment for a term of up to 5 years and a fine of up to Rs. 20,000.
  3. Imprisonment for a term of up to 7 years and a fine of up to Rs. 30,000.
  4. Imprisonment for a term of up to 10 years and a fine of up to Rs. 40,000.
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