Welcome to your Money and Credit (Quiz)

1. 
How does the group benefit when members take loans from an SHG?

2. 
What do banks primarily do with the deposits they accept?

3. 
What is a Self-Help Group (SHG)?

4. 
What social issues can be addressed during the regular meetings of SHGs?

5. 
What does 'double coincidence of wants' refer to?

6. 
What is a common requirement specified in loan agreements?

7. 
Why do informal lenders typically charge higher interest rates?

8. 
Which of the following best describes 'medium of exchange'?

9. 
What characterizes demand deposits?

10. 
What is the function of a cheque in the banking system?

11. 
What does collateral refer to in the context of borrowing?

12. 
Which of the following is NOT a modern form of money

13. 
Which of the following is considered a formal source of credit?

14. 
What does the term "debt-trap" refer to in Swapna's situation?

15. 
What is the main source of income for banks?

16. 
What percentage of loans do poor households in urban areas typically take from informal sources?

17. 
What percentage of their deposits do banks in India typically keep as cash?

18. 
Why do poorer households often depend on informal sources for credit?

19. 
Why is it important for banks and cooperatives to lend more to rural areas?

20. 
Which of the following statements reflects a significant advantage of using money in transactions?

21. 
What can happen if a member fails to repay a loan within an SHG?

22. 
Why do farmers usually take crop loans at the beginning of the season?

23. 
Who issues currency notes in India?

24. 
Why is modern currency accepted as a medium of exchange?

25. 
What role does the Reserve Bank of India (RBI) play in the lending process?