10 - Money and Credit

Banks provide a higher rate of interest on which of the following accounts?

• Saving account

• Fixed account for long period of time

• Current account

• Fixed account for short period of time

What percentage of deposits are kept as cash by the commercial banks in India?

• 25%

• 20%

• 15%

• 10%

What is Statutory Liquidity Reserve?

• Statutory Liquidity Reserve is a certain percentage of the total deposits that must be kept with the commercial bank.

• Statutory Liquidity Reserve is a certain percentage of the total bank deposits must be kept with the Central Bank of the country (RBI)

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

The modern forms of money include ____________ and ____________ .

• Currency notes; gold -silver coins

• Coins; currency notes

A ____________ is the apex institution of monetary system of a country.

• Central Bank

• State Bank

• Grameen Bank

Currency (coins and notes) is a ____________ which cannot be refused in payment for transactions.

• Legal tender

• Illegal tender

_______________________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

• Currency

• Collateral

• Credit Card

A situation in which more persons are employed on a job than are optimally required is:

• Seasonal unemployment

• Cyclical unemployment

• Disguised unemployment

The service sector includes activities such as:

• agriculture, dairy, fishing and forestry

• making sugar, jaggery and bricks

• transport, communication and banking