1) Why are transactions made in
money?
2) What is 'double coincidence of wants'?
3) What is a barter system?
4) How does the use of money make it easier to
exchange things?
5) What was used as money in early ages in
India?
6) Which metals were used for making coins in
India in later stages?
7) What does modern form of money include?
8) Does modern currency have any use of its
own?
9) Why is modem currency accepted as medium of
exchange?
10) In India who is authorised to issue notes
and currency?
11) What are 'demand deposits'?
12) What is a 'cheque'?
13) What do the banks do with the deposits which
they accept from the public?
14) How do banks act as a mediater?
15) What is the main source of income of the
banks, if they forward the depositor's money to the lender?
16) What is 'credit'?
17) What do the farmers in rural areas take
loans for?
18) What is a 'debt trap'?
19) What is 'collateral'?
20) What are the main 'terms of credit'?
21) What are informal sectors of loan?
22) What are the formal sectors of loan?
23) What report is submitted periodically by all
the banks to RBI?
24) Why do informal sectors charge interest rate
with their own risk?
25) Why do banks and cooperatives need to lend
more?
26) Why should credit at reasonable rates be
available to all?
27) What prevents the poor from getting bank
loans?
28) What are SHGs?
29) For what purposes do SHGs give loans to its
members?
30) Give any two advantages of SHGs.
31) Give an example to show that
double coincidence of wants is necessary in a barter system.
32) How is modem form of currency accepted as a
medium of exchange?
33) What are 'demand deposits'?
34) How are demand deposits
accepted as a means of payment?
35) In what ways does the Reserve Bank of India
supervise the functioning of banks?
36) What are the reasons why the
banks might not be willing to lend to certain borrowers?
37) Analyse the role of credit
for development.
38) State three disadvantages of
the barter system.
39) Why are terms of credit required for a loan
or credit?
40) Why does the formal or informal sector ask
for a collateral?
41) How are cooperatives functioning in the
rural areas to solve the problem of credit?
42) Identify transactions involving money in our
day-to-day life.
43) Why are transactions made in money?
44) How does the use of money make it easier to
exchange things?
45) Which objects were used as money?
46) How do farmers get into debt trap?
47) What do the banks do with the
deposits which they accept from the public?
48) Why do we need to expand formal sources of
credit in India?
49) Why are poor households still dependent on
informal sources of credit?
50) What is the basic idea behind the SHGs for
the poor? Explain in your own words.
51) What are the advantages of
SHGs?
52) What are the differences between formal and
informal sources of credit?
53) Why is currency accepted as a medium of
exchange?
54) What is a cheque? How does it replace
currency?
55) What do the banks do with the deposits which
they accept from the public?
56) What is credit? How can credit be both an
asset as well as a debt trap?
57) What are the terms of credit?
58) Why do poor farmers get into
debt trap of informal sector?
59) "The rich households are availing cheap
credit from formal lenders whereas the poor households have to pay a heavy
price for borrowing." Comment.
60) Who takes the important decisions of SHGs
and why?
61) Since money acts as an
intermediate in the exchange process, it is called: (a) value for money (b)
exchange value (c) medium of exchange (d) none of these
62) Modern forms of money include: (a) paper
notes (b) gold coins (c) silver coins (d) copper coins
63) Who issues currency notes on behalf of the
Central government in India? (a)NABARD (b) Reserve Bank of India (RBI) (c)
World Bank (d) State Bank of India (SBI)
64) Deposits in bank accounts withdrawn on
demand are called: (a) fixed deposits (b) recurring deposits (c) demand
deposits (d) none of these
65) Banks in India these days, hold about ____
per cent of their deposits as cash. (a) 50 (b) 20 (c) 15 (d) 10
66) Major portion of the deposits is used by
banks for: (a) setting up new branches (b) paying taxes (c) paying interest on
loans (d) extending loans
67) In rural areas, farmers take credit for? (a)
Family (b) Health (c) Crop production (d) Education
68) A 'debt trap' means: (a) inability to repay
credit amount (b) ability to pay credit amount (c) overspending till no money
is left (d) none of these
69) Formal sources of credit do not include: (a)
banks (b) cooperatives (c) employers (d) none of these
70) Informal sector loans include: (a) NABARD
(b) State Bank of India (c) moneylenders (d) both (b) and (c)
71) Poor households in urban areas take loans
from ____ sources. (a) formal (b) informal (c) both (a) and (b) (d) none of
these
72) What prevents the poor from getting bank
loans? (a) Complexity of procedure (b) Absence of collateral (c) High rates of
interest (d) None of these
73) What is the name of the success story that
met the credit needs of the poor, at reasonable rates, in Bangladesh? (a)
Grameen Bank (b) Reserve Bank (c) Cooperative Bank (d) None of these
74) Why money is known as a
medium of exchange?
75) Is gold seals a modern form of money or an
ancient form of money?
76) What is the main purpose for which farmers
in rural areas take loan?
77) Why do banks and cooperatives need to lend
more to borrowers?
78) Which agency was successful in meeting the
credit needs of the poor at reasonable rates in Bangladesh?
79) Which agency has the sole right to print
currency notes on behalf of Government of India?
80) Why does poor people in rural area prefer to
borrow from informal sources?
81) What are SHGs?
82) What do you mean by Barter system?
83) What is the relative difference between the
rate of interest charged by the formal and informal sources of lending.
84) What could be done in terms of credit
availibility for India's development?
85) What are terms of credit?
86) Which type of households take most of their
loans from the formal sector?
87) Which source of credit advances loans to the
maximum number of rural households in India?
88) Women's self help groups discusses which
social problems in their meetings?
89) Which documents are required to be submitted
to the bank for taking a house loan?
90) Why do informal venders give loans to people
not having any collateral?
91) What is the real source of income for banks?
92) Who supervises the credit activities of
lenders in formal and informal sector?
93) Why do banks are willing to lend to poor
women when organised in SHGs even without collateral?
94) When do we call that a borrower is in debt
trap?
95) What are included in the 'collateral '
demand that lenders make against loans?
96) "Money acts as an intermediate in the
exchange process". Explain.
97) In situations with high risks, credit might
create further problems for the borrower. Explain.
98) (a) Which institution supervises the
functioning of formal sources of credit in India? (b) How does it supervise
them? State any two points.
99) Explain the term debt-trap. Why is it more
rampant in rural areas? Give two reasons.
100) How do banks mediate between those who have
surplus money and those who need money?
101) Why is cheap and affordable
credit important for the country's development? Explain three reasons.
102) ''Whether credit would be useful or not, it
depends on the situation". Give two different examples in support of this
statement.
103) (a) "Most of the poor households still
depend on the informal sector for loans, both in the rural and urban areas of
India". Support this statement with three examples. (b) What values have
you learnt from the given statement?
104) Suppose you have won a big
cash prize in a contest. If your parents ask you to deposit this sum as a fixed
deposit in a bank, what values are parents having, which prompted them to give
you this advice?
105) "Loans from banks always help raise
people's earning capacity". Justify this statement using suitable
examples.
106) How have the SHG's affected the economically
weaker sections in rural areas? Or What is the basic idea behind the SHGs for
the poor? Explain in your own words.
107) Explain with an example, how credit plays a
vital and positive role for development.
108) How have markets been transformed in recent
years? Explain with examples.
109) What do people do with the extra cash? They
deposit it with the banks by opening a bank account in their name. Banks accept
the deposits and also pay an amount as interest on the deposits. In this way
people's money is safe with the banks and it earns an amount as interest.
People also have the provision to withdraw the money as and when they require.
Since, the deposits in the bank accounts can be withdrawn on demand, these
deposits are called demand deposits. Read the above passage and answer the
following questions (a) What is demand deposit? (b) What are the advantages of
depositing cash money in banks? (c) What values have you learnt from the
passage?
110) Compare and contrast the
role of formal and informal sour up of credit
111) What are the two main reasons for formal
credit not being available to the rural poor? Why is there a need to expand
rural credit? Or Why do the rural borrowers depend on the informal sector of
credit? What steps can be taken to encourage them to take loans from the formal
sources? Explain any two.
112) Cheap and affordable credit is crucial for
the country's development. Explain the statement with four points. Or Why
should credit at reasonable rates be available to all? Describe any four
reasons. Or Why do we need to expand formal sources of credit in India? Explain
any four reasons.
113) How does money solve the problem
of Double Coincidence of Wants? Explain with an example of your own.
114) What are the reasons why the banks might not
be willing to lend to certain borrowers?
115) In what ways does the
Reserve Bank of India (RBI) supervise the functioning of banks? Why is this
necessary? Or Which government body supervises the functioning of formal
sources of loans in India? Explain.
116) Analyse the role of credit for
development.
117) The following data shows the
sources of credit for rural households in India in 2003
Source Share
Moneylenders 30%
Cooperative societies 27%
Commercial banks 25%
Others (traders. Relatives, etc) 18%
On the basis of the above table,
answer the following (a) What is the share of formal sector in the total
credit? (b) Suggest two measures for improving the share of formal sector in
total credit. (c) Why is the moneylender still the largest single source of
credit?
118) Which government body supervises the
functioning of formal sources of loans in India? Explain its functioning.
119) Look at a ? 10 note. What is written on top?
Can you explain this statement?
120) Manav needs a loan to set up a small
business. On what basis will Manav decide whether to borrow from the bank or
the moneylender? Discuss.
121) In India, about 80% of fanners are small
farmers, who need credit for cultivation. (a)Why might banks be unwilling to
lend to small fanners? (b) What are the other sources from which the small
farmers can borrow? (c) Explain with an example how the terms of credit can be
unfavourable for the small farmer. (d) Suggest some ways by which small farmers
can get cheap credit.
122) Fill in the Blanks. (a)
Majority of the credit needs of the _____ households are met from informal
sources. (b) _____ costs of borrowing increase the debt-burden. (c) _____
issues currency notes on behalf of the Central Government. (d) Banks charge a
higher interest rate on loans than what they offer on _____ (e) _____ is an
asset that the borrower owns and uses as a guarantee until the loan is repaid
to the lender.
123) Choose the most appropriate answer. (a) In a
SHG most of the decisions regarding savings and loan activities are taken by
(i) bank (ii) members (iii) non-government organisation (b) Formal sources of
credit does not include (i)banks (ii) cooperatives (iii) employers
124) How does the use of money market eastern to
exchange things?
125) Can you think of some examples of goods and
services being exchanged or wages being paid through Barter system?
126) Consider the following
information A shoe manufacturer, M Salim has to make a payment to the leather
supplier and writes a cheque for a specific amount. This means that the shoe
manufacturer instructs his bank to pay this amount to the leather supplier. The
leather supplier takes this cheque and deposits it in his own account in the
bank. The money is transferred from one bank account to another bank account in
a couple of days. The transaction is complete without any payment of cash Now
answer the following questions (a) M Salim wants to withdraw Rs. 20,000 in cash
for making payments. How would he write a cheque to withdraw money? (b) Tick
the correct answer. After the transaction between Salim and Prem, (i) Salmi's
balance in his bank account increases, and Prem's balance increases. (ii)
Salim's balance in his bank account decreases and Prem's balance increases.
(iii) Salim's balance in his bank account increases and Prem's balance
decreases. (c) Suppose Salim continues to get order from traders. What would be
his position after six years?
127) Why are demand deposits considered as money?
128) A House Loan Megha has taken a loan of Rs. 5
lakh from the bank to purchase a house. The annual interest rate on the loan is
12% and the loan is to be repaid in 10 years in monthly instalments. Megha had
to sumbit to the bank, documets showing her employment records and salary
before the bank agreed to give her the loan. The bank retained as collateral
the papers of the new house, which will be returned to Megha only when she
repays the entire loan with interest. Fill the following details of Megha's
housing loan.
(a) Loan amount (In Rupees) (b)
Duration of loan (c) Documents required (d) Interest rate (e) Mode of repayment
(f) Collateral
129) Why do lenders ask for collateral while
lending?
130) Given that a large number of
people in our country are poor, does it in any way affect their capacity to
borrow?
131) Fill in the blanks choosing
the correct option from the brackets. While taking a loan, borrowers look for
easy terms of credit. This means ...... (low/high) interest rate, ......
(easy/tough) conditions for repayment, ............ (less/more) collateral and
documentation requirements.
132) Consider the following information Krishak
Cooperative functions in a village not very far away from Sonpur. It has 2300
farmers as members. It accepts deposits from its members. With these deposits
as collateral, the Cooperative has obtained a large loan from the bank. (a)
List the various sources of credit in Sonpur. (b) Compare the terms of credit
for the small farmer, the medium farmer and the landless agricultural worker in
Sonpur. (c) Can everyone in Sonpur get credit at a cheap rate? Who are the
people who can?
133) Talk to some people to find out the credit
arrangement that exists in your area. Record your conversation. Note the
differences in the terms of credit across people.
134) What are the differences
between formal and informal sources of credit?
135) Why should credit at reasonable rates be
available for all?
136) Should there be a supervisor, such as the
Reserve Bank of India, that looks into the loan activities of informal lenders?
Why would its task be quite difficult?
137) Why do you think that the share of formal sector
credit is higher for the richer households compared to the poorer
households?
138) State any three advantages
of an ATM.
Question Bank
Class X Economics
Chapter- 3. Money and Credit.
One marks questions:-
1. Which system has been replaces by money as a medium of exchange?
2. Which is the modern form of money?
3. Which is an example of plastic money?
4. Which institution of India is authorized to issue currency in India?
5. How much of Bank deposits in kept by the commercial for their day to day transactions.
6. What is the main function of Reserve Bank of India?
7. When reserve Bank of India was nationalized?
8. Who is the founder of Germeen Bank?
9. What is batter system?
10. What is the role of Reserve Bank.
11. What is the full form of ATM.
12. How much of bank deposits in kept by the commercial bank for their day to day transactions?
13. Credit creation is controlled by which institution.
14. Which is the main informed source of credit for rural households in India?
15. Write the full form of SHG?
16. What is money?
17. What is saving?
18. What do you mean by Banking?
19. What is Barter system?
20. What is cheque?
21. What is Saving?
22. What is Bank?
23. Define Reserve Bank of India?
24. What is cash reserve ration?
Three (03) Marks Questions
1. What do you mean by self-help group?
2. How does money solve the problem of double coincidence of?
3. How money has become integral part of our everyday life?
4. What is double coincidence of want in barter system?
5. What is modern form of money?
6. What do you mean by credit?
7. What are different terms of credit?
8. What are formal and informal sector credits in India?
9. Why is it easy to get loan for informal source?
10. What are benefits of SHFS?
11. What is barter system?
Five (05) Marks Question
1. How does money solve the problem of double coincidence of wanch?
2. Why do we need to expand formal sources of credit in India?
3. How does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
4. Analyse the role of credit for development.
5. How money has become integral part of our everyday life?
6. Explain demand deposits as a form of money?
7. Explain the role of cheque in demand deposit as a form of money.
8. Explain the demand for credit in rural areas.
9. How RBI manages the formal sector credit in India?
10. Explain informal sector credit in India.
11. Differentiate between formal and informal sources of credit.
12. Why is it difficult to take loan from formal source?
13. Why is it easy to get loan from informal source?
14. Why are demand deposits considered as money?
***************************
Question Bank
Class X Economics
Chapter- 3. Money and Credit.
One marks questions:-
1. Which system has been replaces by money as a medium of exchange?
2. Which is the modern form of money?
3. Which is an example of plastic money?
4. Which institution of India is authorized to issue currency in India?
5. How much of Bank deposits in kept by the commercial for their day to day transactions.
6. What is the main function of Reserve Bank of India?
7. When reserve Bank of India was nationalized?
8. Who is the founder of Germeen Bank?
9. What is batter system?
10. What is the role of Reserve Bank.
11. What is the full form of ATM.
12. How much of bank deposits in kept by the commercial bank for their day to day transactions?
13. Credit creation is controlled by which institution.
14. Which is the main informed source of credit for rural households in India?
15. Write the full form of SHG?
16. What is money?
17. What is saving?
18. What do you mean by Banking?
19. What is Barter system?
20. What is cheque?
21. What is Saving?
22. What is Bank?
23. Define Reserve Bank of India?
24. What is cash reserve ration?
Three (03) Marks Questions
1. What do you mean by self-help group?
2. How does money solve the problem of double coincidence of?
3. How money has become integral part of our everyday life?
4. What is double coincidence of want in barter system?
5. What is modern form of money?
6. What do you mean by credit?
7. What are different terms of credit?
8. What are formal and informal sector credits in India?
9. Why is it easy to get loan for informal source?
10. What are benefits of SHFS?
11. What is barter system?
Five (05) Marks Question
1. How does money solve the problem of double coincidence of wanch?
2. Why do we need to expand formal sources of credit in India?
3. How does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
4. Analyse the role of credit for development.
5. How money has become integral part of our everyday life?
6. Explain demand deposits as a form of money?
7. Explain the role of cheque in demand deposit as a form of money.
8. Explain the demand for credit in rural areas.
9. How RBI manages the formal sector credit in India?
10. Explain informal sector credit in India.
11. Differentiate between formal and informal sources of credit.
12. Why is it difficult to take loan from formal source?
13. Why is it easy to get loan from informal source?
14. Why are demand deposits considered as money?
***************************
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