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WorksheetsMoney & Credit Part 3
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Money
a)
eliminates double-coincidence of wants
b)
acts as a common measure of value
c)
acts as a standard of deferred payments
d)
all the above
2.
Which body (authority) supervises the functioning of formal sources of loans?
a)
Finance Ministry
b)
Head Office of each Bank
c)
Reserve Bank
d)
Cooperative Societies
3.
People also have the provision to withdraw the money as and when they require the deposits in the bank accounts to be withdrawn, what are these deposits called?
a)
Fixed deposits
b)
Savings
c)
Demand deposits
d)
Demand drafts
4.
What were the earliest form of objects used as money in India?
a)
grains and cattle
b)
Coins
c)
Jewels
d)
Land
5.
Which of the following is not an advantage of self-help group?
a)
Grant of timely loans
b)
Reasonable interests
c)
A platform to discuss various issues
d)
Does not help women to become self-reliant.
6.
_________costs of borrowing increase the debt-burden?
a)
high
b)
low
c)
equal
d)
none
7.
Which is one of the major reasons which prevent the poor from getting bank loans?
a)
Illiteracy
b)
Lack of availability of banks in rural areas
c)
Absence of collateral
d)
Shy to approach formal organizations
8.
What kind of loans do members of SHG take?
a)
Individual loans
b)
Group loans
c)
Society loans
d)
None of the above
9.
In rural areas, the main demand for credit is for _________
a)
Industry
b)
Crop production.
c)
Irrigation
d)
Cultivation
10.
Which one of the following is the main source of credit for the rich households?
a)
Informal
b)
Formal
c)
Both formal and informal
d)
Neither Formal nor informal
11.
Terms of credit are with respect to :
a)
interest rate
b)
collateral
c)
documentation
d)
all the above
12.
Terms of credit are with respect to:
a)
interest rate
b)
collateral
c)
documentation
d)
all the above
13.
Which one of the following is the important characteristic of modern form of currency?
a)
It is made from precious metal
b)
It is made from thing of everyday use
c)
It is authorised by the commercial banks
d)
It is authorised by the Government of the country
14.
Banks use the major portion of the deposit to:
a)
Keep reserve so that people may withdraw
b)
Meet their routine expenses
c)
Extend loans
d)
Meet renovation of the bank
15.
Which one of the following is a major reason that prevents the poor from getting loans from the banks?
a)
Lack of capital
b)
Not affordable due to high rate of interest
c)
Absence of collateral security
d)
Absence of mediators
16.
Which of the following is not true regarding the in convenience of Barter Exchange?
a)
Lack of double coincidence of want
b)
Absence of divisibility
c)
Difficulty in storing wealth
d)
Availability of money as a medium of exchange.
17.
Credit or loan refers to an agreement between:
a)
lender and borrower
b)
consumer and producer
c)
government and tax payer
d)
all the above
18.
Rate of interest charged by moneylenders as compared to that charged by banks is:
a)
lower
b)
same
c)
slightly higher
d)
much higher
19.
When both parties agree to sell and buy each others commodities it is known as:
a)
measure of value
b)
double coincidence of wants
c)
store of value
d)
credit
20.
Since money acts as an intermediate in the exchange process, it is called _______
a)
Medium of trade
b)
Medium of Exchange
c)
Medium of Business
d)
Medium of transaction
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