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WorksheetsMoney & Credit
Total questions: 20
Worksheet time: 3mins
What is the double coincidence of wants?
both parties have to agree to sell and buy each other’s commodities
Exchanging commodity for commodity
Credit on commodity
Loan on commodity till sold further
The modern currency is without any use of its own, then why is it accepted as a medium of exchange?
Because it is convenient
It has digital and manual system
It can be used in foreign exchange
Is authorised by the government of the country
…………refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.
Debit
Cash transaction
Credit
Trade
………………….is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid?
Debt trap
Guarantee
Collateral
Warranty
Interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called the …………..?
Debt trap
Terms of credit
Guarantee
Warranty
Which is one of the major reasons which prevent the poor from getting bank loans?
Illiteracy
Lack of availability of banks in rural areas
Absence of collateral
Shy to approach formal organizations
RBI sees that the banks give loans not just to profit-making businesses and traders but also to………..?
Cooperatives
Small scale industries & small borrowers
SHG
All of the above
In situations with high risks, credit might create further problems for the borrower, what is it called?
Absence of collateral
Debt trap
Debit
Demand deposits
Which of the following suggests credit activity?
A businessman obtains machinery from the seller with the assurance to pay at a later date.
A farmer obtains fertilisers from the seller with the assurance to pay at a later date.
Both of these
None of these
Rich households in urban areas avail cheap credit from
formal sources
informal sources
government
All of the above
Which of the following is not a source of rural credit?
Regional rural banks
Moneylenders
Traders
Government
Who supervises the functioning of formal sources of loans?
RBI (Reserve Bank of India)
Central government
State government
None of the above
Which of the following is not a modern form of money?
Paper notes
Demand deposits
Silver coins
None of the above
What do you mean by collateral?
It is the total sum of money with a person
It is the things kept in the locker
It is the guarantee given by the lender to the borrower.
It is the security to a lender until the loan is repaid
Which of the following methods can reduce the dependence on the informal sector?
,
banks and cooperatives increase their lending particularly in the rural areas
interest rates are decreased on credit
formal sector loans expand, and everyone receives loans
All the above
What do the banks do with the deposits which they accept from the customers?
Banks use these deposits for charitable activities.
Banks use a major portion of deposits to extend loans.
Banks use deposits to give bonuses to their employees.
Banks use deposits to set up more branches in the country.
What is the main source of income of a bank?
Bank charges that the depositors pay for; keeping their money safe is the main; source of the bank’s income.
The difference between what is charged from the borrowers and paid to the depositors is the main source of the bank’s income.
Banks earn huge amounts of money by investing the money of the depositors in various company shares.
The Government of India gives huge amounts of money to the banks to help their smooth functioning
A typical Self Help Group usually has
100-200 members
50-100 members
less than 10 members
15-20 members
Which of the following is not an informal source of credit?
Money-lender
Relatives and Friends
Commercial Banks
Traders
Arrange the following forms of currency according to their usage from the oldest to recent use.
i. Paper currency
ii. Grain & cattle
iii. Coins
iv. Net Banking & digital payments
iii-iv-i-ii
ii-iii-i-iv
iv-i-ii-iii
i-ii-iv-iii
