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MONEY AND CREDIT

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.
Which one is 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 authorized by commercial banks
d)
It is authorized by the Government of the country
2.
Money can be best described as
a)
Medium of transaction
b)
Medium of exchange
c)
Deposit in Banks
d)
Payment through cheque
3.
Who is the founder of Grameen Bank of Bangladesh?
a)
Mohammad Yunus
b)
Mohammad Kasim
c)
Mohammad Tuglaq
d)
Mohammad Zakir
4.

At present which form of money is increasingly used apart from paper money?

a)

(a) bitcoins

b)

(b) Metallic money

c)

(c) Plastic money

d)

(d) All the above

5.

What percentage of deposits are kept as cash by the commercial banks in India?

a)

25%

b)

20%

c)

15%

d)

10%

6.

Banks provide a higher rate of interest on which of the following accounts?

a)

Saving account

b)

Fixed account for long period of time

c)

Current account

d)

Fixed account for short period of time

7.

Under Barter System the exchange of goods require ____.

a)

Double coincidence of wants

b)

A good transport system

c)

Advertising

d)

Communication


8.

_______________________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

a)

Currency

b)

Collateral

c)

Credit Card

9.

Which one of the following is the new way of providing loans to the rural poor?

a)

Co-operative societies

b)

Traders

c)

Relatives and friends

d)

SHG's

10.

Terms of credit does not include

a)

Interest rate

b)

Collateral

c)

Cheque

d)

Mode of repayment

11.

Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called _________.

a)

Fixed deposits

b)

Demand deposits

c)

Bonds

12.
Debt-trap means :
a)
Ability to pay back loan
b)
Extravagance
c)
None of the above
d)
Increasing debt
13.

Why do banks keep a small proportion of the deposits as cash with themselves?

a)

To extend loan to the poor

b)

To extend loan facility

c)

To pay salary to their staff

d)

To pay the depositors who might come to withdraw money

14.

______ and _______ credit is crucial for the country's development

a)

Accessible and affordable

b)

Timely and feasible

c)

Less and high amount of

d)

Cheap and affordable

15.

A typical SHG has ______ members.

a)

15 to 20

b)

20 to 25

c)

25 to 30

d)

30 to 35

16.

Money as a medium of exchange has removed the problem of …………. of wants.

(a)  

17.

SHGs help borrowers overcome the problem of lack of ______

a)

terms of credit

b)

collateral

c)

credit

d)

loan

18.

Money :

a)

(a) eliminates double-coincidence of wants

b)

(b) acts as a common measure of value

c)

(c) acts as a store of value

d)

(d) all the above

19.

What is the main source of income for banks?

a)

Interest on loans

b)

Interest on deposits

c)

Difference between the interest charged on borrowers and depositors

d)

None of these

20.
Which one is an example of Informal Source of Credit
a)
Banks
b)
Cooperative Societies
c)
Money Lender
d)
All of these