WorksheetsMoney & Credit Part 4
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Which one of the following agencies issues currency notes on behalf of the government of India?
a)
Ministry of Finance
b)
Reserve Bank of India
c)
State Bank of India
d)
World Bank
2.
System of exchanging goods for goods is called:
a)
monetary system
b)
credit system
c)
barter system
d)
exchange system
3.
Which among these is an essential feature of barter system?
a)
Money can easily exchange any commodity
b)
It is based on double co-incidence of wants
c)
It is generally accepted as a medium of exchange of goods with money
d)
It acts as a measure and store of value
4.
Formal Sources of credit include:
a)
money lenders
b)
co-operatives
c)
Employers
d)
Finance companies
5.
Which of the following is not an informal source of credit?
a)
Money-lender
b)
Relatives and Friends
c)
Commercial Banks
d)
Traders
6.
Which is an important form in which people hold money?
a)
Moneylenders
b)
Bank deposits
c)
Post office deposits
d)
Mutual funds
7.
How do banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers)?
a)
Mutual funds
b)
Share dividend
c)
Loans
d)
Deposits
8.
Which of the following is not a modern form of money?
a)
Paper notes
b)
Demand deposits
c)
Silver coins
d)
None of the above
9.
Which households take more loans from the formal sector?
a)
Poor households and rich household.
b)
Well off households and households with few assets.
c)
Poor households and well off households
d)
Well off households and rich households.
10.
Which one of the following is not included in the terms of credit?
a)
Rate of Interest
b)
Mode of payment
c)
Rate of saving
d)
Collateral
11.
Which among the following banks issues currency notes on behalf of the Central Government in India?
a)
RBI
b)
State Bank of India
c)
Bank of India
d)
Central Bank of India
12.
Which of the following is not a source of rural credit?
a)
Regional rural banks
b)
Moneylenders
c)
Traders
d)
Government
13.
Which one of the following authorises money as a medium of exchange?
a)
Reserve Bank of India
b)
Self Help Groups
c)
The Central Government
d)
The President of India.
14.
Who supervises the functioning of formal sources of loans?
a)
Reserve Bank of India
b)
Central government
c)
State government
d)
None
15.
M Salim wants to withdraw Rs 20,000 in cash for making payments to Prem after Prem receives the money he deposits it in his own account? What is the result?
a)
Salim’s balance in his bank account increases, and Prem’s balance increases.
b)
Salim’s balance in his bank account decreases and Prem’s balance increases.
c)
Salim’s balance in his bank account increases and Prem’s balance decreases
d)
None of the above
16.
Who helps the borrowers to overcome the problem of lack of collateral?
a)
Self-help group (SHG)
b)
State government
c)
Employers
d)
Moneylenders
17.
What is the aim of the loans sanctioned to SHG?
a)
To establish industries
b)
To establish fisheries
c)
To create self-employment opportunities
d)
For the development of agriculture
18.
Banks do not give loans:
a)
to small farmers
b)
to marginal farmers
c)
to industries
d)
without proper collateral and documents
19.
Which is not the main source of credit from the following for rural households in India?
a)
Traders
b)
Relatives and friends
c)
Commercial Banks
d)
Moneylanders
20.
The part of the total deposits which a bank keeps with itself in cash is
a)
zero
b)
a small proportion
c)
a big proportion
d)
100 percent
100 %
