Money lenders,landlords,traders,etc.are the
sources of credit in India
Answers
Explanation:
3. Which among the following authorities issues currency notes on behalf of the government?
(a) Government of India
(b) The State Bank of India
(c) National Bank for Agriculture and Rural Development
(d) Reserve Bank of India
Answer
Answer: d
4. In which of the following systems exchange of goods is done without use of money?
(a) Credit system
(b) Barter system
(c) Banking system
(d) Collateral system
Answer
Answer: b
5. Banks provide a higher rate of interest on which of the following accounts?
(a) Saving account
(b) Current account
(c) Fixed deposits for long period
(d) Fixed deposits for very short period
Answer
Answer: c
6. Banks use the major portion of the deposits to:
(a) Keep as reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of bank
Answer
Answer: c
7. What percentage of their deposits is kept as cash by the banks in India?
(a) 25%
(b) 20%
(c) 15%
(d) 10%
Answer
Answer: c
8. The informal source of credit does not include which one of the following?
(a) Traders
(b) Friends
(c) Cooperative Societies
(d) Moneylenders
Answer
Answer: c
9. Which one of the following is the new way of providing loans to the mral poor?
(a) Co-operative societies
(b) Traders
(c) Relatives and friends
(d) SHGs
Answer
Answer: d
Question 10. Why is currency accepted as a medium of exchange?
(a) Because the currency is authorised by the government of the country.
(b) Because it is liked by the people who use it.
(c) Because the use of currency has its origin in ancient times.
(d) Because the currency is authorised by the World Bank.
Answer
Answer: a
11. Who issues the currency notes in India?
(a) Currency notes are issued by the Finance Commission.
(b) All the nationalized banks can issue the currency notes.
(c) Only Reserve Bank of India can issue currency notes.
(d) Any individual or organization can issue cur¬rency notes with the permission of the govt.
Answer
Answer: c
12. Which among the following banks issues currency notes on behalf of the Central Government in India?
(a) RBI
(b) State Bank of India
(c) Bank of India
(d) Central Bank of India
Answer
Answer: a
13. What do the banks do with the deposits which I they accept from the customers?
(a) Banks use these deposits for charitable activities.
(b) Banks use a major portion of deposits to extend loans.
(c) Banks use deposits to give bonus to their employees.
(d) Banks use deposits to set up more branches in the country.
Answer
Answer: b
14. What is the main source of income of a bank?
(a) Bank charges that the depositors pay for ; keeping their money safe is the main ; source of the bank’s income.
(b) The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.
(c) Banks earn huge amounts of money by investing the money of the depositors in various company shares.
(d) The Government of India gives huge amounts of money to the banks to help their smooth functioning.
Answer
Answer: b
15. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to
(a) Debt
(b) Deposit
(c) Credit
(d) Collateral
Answer
Answer: c
16. Which body (authority) supervises the functioning of formal sources of loans?
(a) Finance Ministry
(b) Head Office of each Bank
(c) Reserve Bank
(d) Cooperative Societies
Answer
Answer: c
17. Money-lenders usually demand a ‘security’ from the borrower. What is the formal word used for the ‘security’, such as land, vehicle, livestock, building, etc.?
(a) Deposit
(b) Collateral
(c) Credit
(d) Guarantee
Answer
Answer: b
18. Which among the following options will be the cheapest source of credit in rural areas?
(a) Bank
(b) Cooperative Society
(c) Money-lender
(d) Finance Company
Answer
Answer: b
19. In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?
(a) Bhuta
(b) Sri Lanka
(c) Bangladesh
(d) Nepal
Answer
Answer: c