Welcome to your Money and Credit (Quiz)

1. 
What is the function of a cheque in the banking system?

2. 
What role does the Reserve Bank of India (RBI) play in the lending process?

3. 
Why is modern currency accepted as a medium of exchange?

4. 
Why do informal lenders typically charge higher interest rates?

5. 
Which of the following best describes 'medium of exchange'?

6. 
Why do poorer households often depend on informal sources for credit?

7. 
What does collateral refer to in the context of borrowing?

8. 
Why is it important for banks and cooperatives to lend more to rural areas?

9. 
What is the main source of income for banks?

10. 
What does the term "debt-trap" refer to in Swapna's situation?

11. 
What social issues can be addressed during the regular meetings of SHGs?

12. 
What is a common requirement specified in loan agreements?

13. 
Which of the following statements reflects a significant advantage of using money in transactions?

14. 
Who issues currency notes in India?

15. 
What percentage of their deposits do banks in India typically keep as cash?

16. 
What do banks primarily do with the deposits they accept?

17. 
Which of the following is considered a formal source of credit?

18. 
What characterizes demand deposits?

19. 
What does 'double coincidence of wants' refer to?

20. 
What percentage of loans do poor households in urban areas typically take from informal sources?

21. 
What is a Self-Help Group (SHG)?

22. 
How does the group benefit when members take loans from an SHG?

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

24. 
Why do farmers usually take crop loans at the beginning of the season?

25. 
What can happen if a member fails to repay a loan within an SHG?