SOURCES OF CREDIT: MONEY AND CREDIT

Which of the following does not constitute a part of informal credit in India?

• (A) Commercial Bank

• (B) Moneylenders

• (C) Friends and relatives

• (D) Zamindars

2. 2.The functioning of the formal source of credit is supervised by:

• (A) Reserve Bank of India

• (B) State Bank of India

• (C) Finance Ministry

• (D) Businessman

3.Banks do not give loans to:

• (A) small farmers.

• (B) marginal farmers.

• (C) Small Industries

• (D) people without proper collateral and documents.

4. Find the incorrect option from the following:

• (A) Poor households still depend on informal sources of credit.

• (B) RBI supervises the functioning of informal sources of loans.

• (C) Banks are not present everywhere in the rural areas.

• (D) RBI monitors the banks is actually maintaining cash balance.

5. Analyze the information given below, considering

one of the following correct options:

Megha has taken a loan of ` 6 lakhs from the bank to purchase a house. The loan is to be repaid in 12 years in monthly installments. Megha had to submit to the bank, documents showing her employment records and salary before the bank agreed to give her the loan.

• (A) Interest on loan

• (B) Formal source of loan

• (C) Informal source of loan

• (D) None of the above