Money and Credit (Quiz) - Social Science

Welcome to your Money and Credit (Quiz)

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

Health, nutrition, and domestic violence

Government policies

Only financial issues

Marketing strategies

What characterizes demand deposits?

They can be withdrawn on demand

They earn interest only when not used

They cannot be withdrawn

They are not accepted as a medium of exchange

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

33%

50%

17%

84%

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

It increases the complexity of exchanges

It reduces the need for a mutual agreement on goods

It creates more barriers in trading

It allows for easier exchanges between diverse parties

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

To make a payment from the bank account

To serve as currency

To record financial transactions

To withdraw cash

What does 'double coincidence of wants' refer to?

The requirement that both parties must want what the other is offering

The use of two currencies in transactions

The need for two parties to agree on a price

The simultaneous exchange of money and goods

What does collateral refer to in the context of borrowing?

The amount of money borrowed

A type of loan agreement

A personal guarantee

An asset used as security against a loan

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

Friends and relatives

Traders

Moneylenders

Banks and cooperatives

What is the main source of income for banks?

Difference between interest charged on loans and interest paid on deposits

Transaction fees

Interest on deposits

Government grants

10.

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

A situation where a borrower successfully repays loans

A situation where credit leads to further debt and financial distress

A method of saving money

A scenario that leads to improved financial status

11.

What do banks primarily do with the deposits they accept?

Store them safely

Extend loans to borrowers

Distribute among depositors

Invest in stock markets

12.

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

To reduce the dependence on informal sources of credit.

To limit the number of loans given to the poor.

To increase their profit margins.

To allow informal lenders to charge less.

13.

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

A method of saving money

An item used only for trading

Anything that is accepted in exchange for goods and services

A type of currency with intrinsic value

14.

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

The group dissolves immediately.

Other members will follow up seriously on the repayment.

The member gets a longer repayment period.

The loan is forgiven by the bank.

15.

What is a Self-Help Group (SHG)?

A bank that offers low-interest loans to poor families.

A government initiative to provide loans to the rich.

An informal lending group with no structure.

A group of individuals who pool savings to provide loans to members.

16.

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

It provides loans directly to borrowers.

It monitors informal lenders.

It eliminates the need for loans.

It supervises the functioning of formal lenders like banks.

17.

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

They have easier access to formal banks.

They prefer the informal lending process.

Banks require collateral, which they often lack.

Informal lenders offer lower interest rates.

18.

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

To invest in stocks

To cover expenses on seeds, fertilizers, and equipment

To buy livestock

To pay off old debts

19.

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

Loans are provided without any interest.

The group can collectively decide on loan terms and repayment.

Members are not accountable to each other for repayments.

Loans are granted without any conditions.

20.

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

15%

25%

20%

10%

21.

What is a common requirement specified in loan agreements?

Both B and C

High collateral value

Interest rate

Fixed repayment period

22.

Who issues currency notes in India?

State Bank of India

The Reserve Bank of India

Central Bank of India

International monetary organizations

23.

Which of the following is NOT a modern form of money

Grains

Coins

Paper notes

Demand deposits

24.

Why is modern currency accepted as a medium of exchange?

Because it has intrinsic value

Because it is a commonly used commodity

Because it is made of precious metals

Because it is authorized by the government

25.

Why do informal lenders typically charge higher interest rates?

They have lower operating costs.

They are unregulated and can set rates as they choose.

They offer loans without any collateral.

They are more efficient than banks.

3 thought on “Money and Credit (Quiz)”

Maanya Reddy Boddu says:
November 7, 2024 at 6:55 am
I did a quiz on money and credit can u pls say all the answers in the above quiz
Reply
1. Preeti says:
  November 7, 2024 at 1:17 pm
  Good Evening, Maanya. Quiz has automatic feature of telling answers after completing all the quiz questions.
2. Preeti says:
  November 7, 2024 at 1:32 pm
  Once you complete the quiz questions, all the correct answers will automatically appear on the screen. Give it a try and feel free to reach out if you have any other queries. Thank you!

3 thought on “Money and Credit (Quiz)”

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