Welcome to your Money and Credit (Quiz)

1. 
Why is modern currency accepted as a medium of exchange?

2. 
Which of the following is NOT a modern form of money

3. 
What does collateral refer to in the context of borrowing?

4. 
Which of the following best describes 'medium of exchange'?

5. 
Which of the following statements reflects a significant advantage of using money in transactions?

6. 
Why do farmers usually take crop loans at the beginning of the season?

7. 
What is the function of a cheque in the banking system?

8. 
What characterizes demand deposits?

9. 
What do banks primarily do with the deposits they accept?

10. 
How does the group benefit when members take loans from an SHG?

11. 
What percentage of loans do poor households in urban areas typically take from informal sources?

12. 
What percentage of their deposits do banks in India typically keep as cash?

13. 
What role does the Reserve Bank of India (RBI) play in the lending process?

14. 
Why do poorer households often depend on informal sources for credit?

15. 
Which of the following is considered a formal source of credit?

16. 
What is the main source of income for banks?

17. 
What does the term "debt-trap" refer to in Swapna's situation?

18. 
Why is it important for banks and cooperatives to lend more to rural areas?

19. 
Who issues currency notes in India?

20. 
What can happen if a member fails to repay a loan within an SHG?

21. 
What is a common requirement specified in loan agreements?

22. 
Why do informal lenders typically charge higher interest rates?

23. 
What is a Self-Help Group (SHG)?

24. 
What does 'double coincidence of wants' refer to?

25. 
What social issues can be addressed during the regular meetings of SHGs?