Money & Credit Part 1

What portion of deposits are kept by the banks for their day to day transaction?

• 0.1
• 0.15
• 0.2
• 0.25

Banks in India these days hold about ………. of their deposits as cash. This is kept as a provision to pay the depositors who might come to withdraw money from the bank

• 0.2
• 0.25
• 0.3
• 0.15

According to the information given on formal and informal loans how much of a loan is taken by the rich household from informal sources?

• 0.4
• 0.05
• 0.1
• 0.2

According to the information given on formal and informal loans how much of the loan is taken by the poor household from informal sources?

• 0.6
• 0.75
• 0.85
• 0.7

Grameen Bank of Bangladesh is one of the biggest success stories,  in 2018 it had over _____ million members in about 81,600 villages

• 8
• 10
• 7
• 9

Regional Rural Banks were set up in ________

• 1969
• 1979
• 1989
• 1999

What is the double coincidence of wants?

•  both parties have to agree to sell and buy each other’s commodities
• Exchanging commodity for commodity
• Credit on commodity
• Loan on commodity till sold further

A typical Self Help Group usually has

• 100-200 members
• 50-100 members
• less than 10 members
• 15-20 members

In situations with high risks, credit might create further problems for the borrower, what is it called?

• Absence of collateral
• Debt trap
• Debit
• Demand deposits

Which of the following is a major reason which prevents the poor from getting bank loans?

• Absence of collateral (security)
• Non-repayment of loans
• Higher interest rates
• Documentation