Money and credit -Quiz

Which one of the following statements is most appropriate regarding transaction made in money?

• it is the easiest way

• it is safest way

• it is the cheapest way

• it promotes trade

Which one of the following is the new way of providing loans to the rural poor?

• Co-operative societies

• Traders

• Relatives and friends

• SHG's

Which one of the following is the main source of credit for rich urban households in India?

• Formal sector

• Informal sector

• Money lenders

• Traders

What is the main source of income for banks?

• Interest on loans

• Interest on deposits

• Difference between the interest charged on borrowers and depositors

• None of these

Why do banks keep a small proportion of the deposits as cash with themselves?

• To extend loan to the poor

• To extend loan facility

• To pay salary to their staff

• To pay the depositors who might come to withdraw money

When a person wants to sell exactly what the other person wants to buy. This situation is known as

• Barter System
• Double coincidence of wants
• Trading
• None of these

Which authority regulate and overlook the credit sysetm and economic activites in India

• NSSO
• CBI
• Finance Minister
• RBI

Which one is an example of Informal Source of Credit

• Banks
• Cooperative Societies
• Money Lender
• All of these

A financial institution which accepts deposits from public and provide loans to them.

• Share Market
• Insurance Company
• Banks
• All of these

An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to;

• Debt

• Deposit

• Credit

• Collateral