The exchange of goods for goods is:

1

(a)

Banker of option

(b)

Bills of exchange

(c)

Barter

(d)

Currency

Currency is issued by:

1

(a)

RBI on behalf of central government

(b)

By president of India

(c)

By finance minister

(d)

None of them

National Sample Survey Organisation is a 

1

(a)

Commercial bank organisation

(b)

An organisation of World Bank

(c)

An organisation associated with Indian Standard Institute

(d)

An institution responsible to collect data on formal sector credit.

Which agency is not included in informal loan sector or agency

1

(a)

Bank

(b)

Village money lender

(c)

Trader

(d)

Relative of borrower

In SHG most of the decisions regarding savings and loan activities are taken by

1

(a)

Bank

(b)

Members

(c)

Non-government organisations

(d)

LIC

Formal sources of credit do not include

1

(a)

Banks

(b)

cooperatives

(c)

employers

(d)

LIC

Security against loan is 

1

(a)

Collateral

(b)

Token Coins

(c)

Promisory Note

(d)

Currency

A bill of exchange promising to a certain sum written there in 

1

(a)

Currency

(b)

Collateral

(c)

Promisory note

(d)

Bank rate

Define money.

1

(a)

Money is anything which has common acceptability as a means of exchange, a measure and a store of value.

Why one cannot refuse a payment made in rupees in India?

1

(a)

One cannot refuse a payment made in rupees in India because it is authorised by the Indian government.

What objects were used as money in India, before the introduction of coins?

1

(a)

Foodgrains and cattle were used as money before the introduction of coins in India.

Which metals were used for making coins in India in later stages?

1

(a)

Gold, silver and copper coins were used for making coins in later stages in India.

The modern currency is accepted as a medium of exchange. Why?

1

(a)

It is accepted as a medium of exchange because it is authorised by the Government of India.

Define a bank.

1

(a)

A bank is a financial institution whose demand deposits are widely accepted as money for making payment and has the power to create money.

What is a debt-trap?

1

(a)

A debt-trap is a situation when it becomes impossible to repay the loan and the borrower adds on a new debt to pay the existing debt.

What is collateral?

1

(a)

Collateral is an asset, such as land, vehicle, building, livestock and deposits with banks, that the borrower owns and uses this as a guarantee to a lender until the loan is repaid.

What are the main 'terms of credit'?

1

(a)

Interest rate, collateral, documentation requirements and the mode of repayment together comprise 'terms of credit'.

Besides banks, what are the other sources of credit from which the small farmers borrow?

1

(a)

Besides banks, the small farmers borrow from landlords, moneylenders, traders, relatives and friends etc.

For which purpose are a major portion of the deposits with the banks used?

1

(a)

Banks use the major portion of their deposits to extend loans.

How many members does a typically SHG comprise of?

1

(a)

A typical SHG usually comprises 15-20 members.

How does the use of money make it easier to exchange things?

3

(a)

Suppose Salim continues to get orders from traders. What would be his position after six years?

3

(a)

Can everyone in Sonpur get credit at a cheap rate?Who are the people who can?

3

(a)

What are the reasons why the banks might not be willing to lend to certain borrowers? 

3

(a)

In what ways does the Reserve Bank of India supervise the functioning of Banks?Why is this necessary?

3

(a)

Why is it necessary for the banks and cooperatives to increase their lending facilities in rural areas? Explain.

5

(a)

Discuss the functioning of Self-Help Groups (SHGs)

5

(a)

Describe the vital and positive role of credit with examples.

5

(a)