Question

.......... has one of the largest road networks in the world, aggregating to about 2.3 million km at

present.

(a) India (b) China (c) Bangladesh (d) Nepal

15. Raghav has surplus money so he opens a bank account and deposits in it. Whenever he needs money. he

can go to his bank and withdraw from there. This kind of deposit with the banks are known as ----------

(a) demand deposit (b) term deposit (c) fixed deposit (d) surplus deposit

16. Percentage of formal sector in total credit in India in poor household is

(a) 15 (b) 20 (c) 70 (d) 80

17. What are the modern forms of money?

(a) Currency (b) Plastic money (c) Demand deposits (d) All the above

18. What do you mean by collateral?

(a) It is the total sum of money with a person.

(b) It is the things kept in the locker

(c)It is the guarantee given by the lender to the borrower.

(d)It is the security to a lender until the loan is repaid

Ans. (c)

19. Why bank deposits are known as demand deposits ?

20. Who supervises the credit activities of lenders in the informal sector?

(a) Central Bank of India (b) Commercial banks (c) Moneylenders (d) None of these​

Answer 1

Answer:

14.) (a) India

15.) (a) demand deposit

16.) (d) 80

17.) (a) Currency

18.) (d) It is the security to a lender until the loan is repaid

19.) People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.

20.) (d) None of these

Answer 2

Answer:

1. India
2. surplus deposit
3. 80
4. currency
5. it is the guarantee given by the lender to the borrower
6. that is because the bank is liable to keep the deposited money available for withdrawal by the depositor whenever he/she demands it i.e. available ‘on demand’, hence they are called demand deposits.                             On the other hand, in case of fixed deposits, there is a pre-decided period of ‘time’ (the tenor of the deposit) only at the end of which the bank is expected to return the funds back to the depositor, hence these deposits are called time deposits.
7. None of these​