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WorksheetsMoney & Credit Part 1
Total questions: 22
Worksheet time: 11mins
Name
Class
Date
1.
What portion of deposits are kept by the banks for their day to day transaction?
a)
0.1
b)
0.15
c)
0.2
d)
0.25
2.
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
a)
0.2
b)
0.25
c)
0.3
d)
0.15
3.
According to the information given on formal and informal loans how much of a loan is taken by the rich household from informal sources?
a)
0.4
b)
0.05
c)
0.1
d)
0.2
4.
According to the information given on formal and informal loans how much of the loan is taken by the poor household from informal sources?
a)
0.6
b)
0.75
c)
0.85
d)
0.7
5.
Grameen Bank of Bangladesh is one of the biggest success stories, in 2018 it had over _____ million members in about 81,600 villages
a)
8
b)
10
c)
7
d)
9
6.
Regional Rural Banks were set up in ________
a)
1969
b)
1979
c)
1989
d)
1999
7.
What is the double coincidence of wants?
a)
both parties have to agree to sell and buy each other’s commodities
b)
Exchanging commodity for commodity
c)
Credit on commodity
d)
Loan on commodity till sold further
8.
A typical Self Help Group usually has
a)
100-200 members
b)
50-100 members
c)
less than 10 members
d)
15-20 members
9.
In situations with high risks, credit might create further problems for the borrower, what is it called?
a)
Absence of collateral
b)
Debt trap
c)
Debit
d)
Demand deposits
10.
Which of the following is a major reason which prevents the poor from getting bank loans?
a)
Absence of collateral (security)
b)
Non-repayment of loans
c)
Higher interest rates
d)
Documentation
11.
Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
a)
Andhra Pradesh
b)
Tamil Nadu
c)
Kerala
d)
Karnataka
12.
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
13.
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.
14.
In an SHG most of the decisions regarding savings and loan activities are taken by
a)
Bank.
b)
Members
c)
Non-government organization.
d)
None of the above
15.
Formal sources of credit include
a)
banks
b)
moneylenders
c)
employers
d)
all the above
16.
In a SHG most of the decisions regarding loan activities are taken by
a)
Banks
b)
Member
c)
Non-government organizations
d)
Cooperatives
17.
Which organizations arrange formal sector loans?
a)
Banks
b)
Cooperatives
c)
Moneylenders
d)
A & B
18.
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.
19.
The modern currency is without any use of its own, then why is it accepted as a medium of exchange?
a)
Because it is convenient
b)
It has digital and manual system
c)
It can be used in foreign exchange
d)
Is authorised by the government of the country
20.
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.
21.
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
22.
Who supervises the credit activities of lenders in the informal sector?
a)
Central Bank of India
b)
Commercial banks
c)
Moneylenders
d)
None
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