Welcome to your Money and Credit (Quiz)

1. 
Why do poorer households often depend on informal sources for credit?

2. 
Which of the following best describes 'medium of exchange'?

3. 
What percentage of their deposits do banks in India typically keep as cash?

4. 
What is a common requirement specified in loan agreements?

5. 
What does collateral refer to in the context of borrowing?

6. 
What is a Self-Help Group (SHG)?

7. 
What do banks primarily do with the deposits they accept?

8. 
What can happen if a member fails to repay a loan within an SHG?

9. 
What does the term "debt-trap" refer to in Swapna's situation?

10. 
Why is it important for banks and cooperatives to lend more to rural areas?

11. 
Which of the following is considered a formal source of credit?

12. 
What is the function of a cheque in the banking system?

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

14. 
What social issues can be addressed during the regular meetings of SHGs?

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

16. 
Which of the following statements reflects a significant advantage of using money in transactions?

17. 
Who issues currency notes in India?

18. 
Why do farmers usually take crop loans at the beginning of the season?

19. 
What characterizes demand deposits?

20. 
What does 'double coincidence of wants' refer to?

21. 
Why is modern currency accepted as a medium of exchange?

22. 
What percentage of loans do poor households in urban areas typically take from informal sources?

23. 
Which of the following is NOT a modern form of money

24. 
How does the group benefit when members take loans from an SHG?

25. 
Why do informal lenders typically charge higher interest rates?