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WorksheetsNTSE Quiz (Money & Credit)
Total questions: 25
Worksheet time: 25mins
Who issues the currency notes in India?
Currency notes are issued by the Finance Commission.
All the nationalized banks can issue the currency notes.
Only Reserve Bank of India can issue currency notes.
Any individual or organization can issue currency notes with the permission of the govt.
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 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.
Which body (authority) supervises the functioning of formal sources of loans?
Finance Ministry
Head Office of each Bank
Reserve Bank
Cooperative Societies
Which among the following banks issues currency notes on behalf of the Central Government in India?
RBI
State Bank of India
Bank of India
Central Bank of India
Which of the following is not an informal source of credit?
Money-lender
Relatives and Friends
Commercial Banks
Traders
Which of the following statements are true?
As per Indian law, apart from RBI, no other individual or organization is allowed to issue currency.
The law legalizes the use of rupee as a medium of payment that cannot be refused in settling transactions in India
No individual in India can legally refuse a payment made in rupees.
All of the above are true.
Banks use the major portion of the deposits to
extend loans
invest in infrastructure
deposit in foreign banks
None of the above
What are the different components of the terms of credit?
Interest rate
Documentation requirements
Collateral
All of the above
Which of the following could lead to a debt trap?
The high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower.
Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan.
The high interest rate for borrowing can mean that the amount to be repaid is lesser than the income of the borrower.
both (a) and (b)
As of 2012, the major source of credit to the rural households in India was
Moneylenders.
Commercial banks.
Cooperative societies.
Relatives and friends.
Which among these is an essential feature of barter system?
Money can easily exchange any commodity
It is based on double co-incidence of wants
It is generally accepted as a medium of exchange of goods with money
It acts as a measure and store of value
Which one of the following is not a modern form of money?
Demand Deposits
Paper currency
Coins
Precious metals
Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
Andhra Pradesh
Tamil Nadu
Kerala
Karnataka
The part of the total deposits which a bank keeps with itself in cash is
zero
a small proportion
a big proportion
100 percent
System of exchanging goods for goods is called:
monetary system
credit system
barter system
exchange system
Double coincidence of wants means
what a person desires to sell is exactly what the other person wishes to buy.
what a person desires to sell is exactly what the other person also wishes to sell.
what a person desires to buy is exactly what the other person also wishes to buy.
None of the above.
A typical Self-Help Group usually has
100-200 members
50-100 members
less than 10 members
15-20 members
Why is currency accepted as a medium of exchange?
Because the currency is authorized by the government of the country.
Because it is liked by the people who use it.
Because the use of currency has its origin in ancient times.
Because the currency is authorized by the World Bank.
An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to
Debt
Deposit
Credit
Collateral
Money-lenders usually demand a ‘security’ from the borrower. What is the formal word used for the ‘security’, such as land, vehicle, livestock, building, etc.?
Deposit
Collateral
Credit
Guarantee
Interest rate, security and documentation requirement, and the mode of repayment together comprise what is called the:
Loan factor
Credit factor
Terms of loan
Terms of credit
Loans from banks and cooperatives are called:
Mixed loans
Term loans
Formal loans
Informal loan
Which of the following is not true regarding the in convenience of Barter Exchange?
Lack of double coincidence of want
Absence of divisibility
Difficulty in storing wealth
Availability of money as a medium of exchange
What do the banks do with the deposits which I 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 bonus to their employees.
Banks use deposits to set up more branches in the country.
Which among the following options will be the cheapest source of credit in rural areas?
Bank
Cooperative Society
Money-lender
Finance Company
