Money and Credit Test

Result

Money and Credit Test - 2

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Since money acts as an intermediate in the exchange process, it is called:

A
Value for money

B
Exchange value

C
Medium of exchange

D
None of these

Solution

Money can easily be exchanged for a commodity or a service. When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
Question 2
1 / -0

Directions: Choose the correct option.

Assertion (A): Money has taken many forms throughout the centuries.
Reason (R): E-money and bitcoins are modern forms of money.

A
A is true, R is false.

B
A is false, R is true.

C
Both A and R are true and R is the correct explanation of A.

D
Both A and R are true but R is not the correct explanation of A.

Solution

Both A and R are true but R is not the correct explanation of A because e-money and bitcoins are examples of modern money forms.
Question 3
1 / -0

What is the main source of income for banks?

A
Interest on loans

B
Interest on deposits

C
Difference between what is charged from borrowers and what is paid to depositors

D
Difference the cost of minting and actual value.

Solution

Difference between what is charged from borrowers and what is paid to depositors is the main source of income for banks.
Question 4
1 / -0

Which of following is not correct about formal financial institutions?

A
Well defined rules and procedures

B
Low rate of interest

C
Supervision by Central Government

D
Regional rural bank is a formal financial institution.

Solution

Formal financial institutions are supervised by the Reserve Bank of India.
Question 5
1 / -0

What is the meaning of term "debt trap"?

A
Inability to repay credit amount

B
Ability to pay credit amount

C
Overspending till no money is left

D
Inability to recover lent money

Solution

It is a situation where credit pushes the borrower into a situation in which recovery is very painful.
Question 6
1 / -0

Directions: Choose the correct option.

Assertion (A): Collateral security is a property or other asset that a borrower offers to a lender to secure a loan.
Reason (R): Buildings or gold ornaments can be used as collateral security.

A
A is true, R is false

B
A is false, R is true

C
Both A and R are true but R is not the correct explanation of A.

D
Both A and R are true and R is the correct explanation of A.

Solution

Both A and R are true but R is not the correct explanation of A. R offers an example for A.
Question 7
1 / -0

Which of the following is not a part of terms of credit?

A
Terms of loan

B
Rate of interest

C
Lender's land

D
Mode of repayment

Solution

Terms of credit refer to standard or negotiated terms (offered by a seller to a buyer) that control (1) the monthly and total credit amount, (2) maximum time allowed for repayment, (3) discount for cash or early payment, and (4) the amount or rate of late payment penalty.
Question 8
1 / -0

Which of the following statements is/are correct?

a. There is no supervising body in informal financial institutions.
b. Informal financial institutions make use of unfair means to get their money back.
c. NABARD and money lenders form a part of informal financial institutions.

A
a and b

B
only a

C
a and c

D
a, b and c

Solution

A formal organization refers to the structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. Thus, a formal organization is created through the co-ordination of efforts of various individuals.
NABARD is a formal financial institution.
Question 9
1 / -0

Why do banks and cooperatives need to increase lending in rural areas?

A
High cost of borrowing from informal sources.

B
Borrowers wish to set up small scale enterprises.

C
Borrowers need more money but cannot ask.

D
Lending in rural areas adds more to the growth of financial insitututions.

Solution

Banks and cooperatives need to increase lending in rural areas because informal financial institutions exploit the borrowers by charging high rate of interest.
Question 10
1 / -0

Who take(s) decisions regarding savings and loan activities in Self Help Groups?

A
Regional Rural Bank

B
Group members

C
Non-government organisation

D
Local government

Solution

All the decisions in Self Help Groups are taken by group members.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Money and Credit Test - 2

Result

Money and Credit Test - 2

Score

-

Rank

-

SHARING IS CARING

Question 1

Value for money

Exchange value

Medium of exchange

None of these

Solution

Question 2

A is true, R is false.

A is false, R is true.

Both A and R are true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

Solution

Question 3

Interest on loans

Interest on deposits

Difference between what is charged from borrowers and what is paid to depositors

Difference the cost of minting and actual value.

Solution

Question 4

Well defined rules and procedures

Low rate of interest

Supervision by Central Government

Regional rural bank is a formal financial institution.

Solution

Question 5

Inability to repay credit amount

Ability to pay credit amount

Overspending till no money is left

Inability to recover lent money

Solution

Question 6

A is true, R is false

A is false, R is true

Both A and R are true but R is not the correct explanation of A.

Both A and R are true and R is the correct explanation of A.

Solution

Question 7

Terms of loan

Rate of interest

Lender's land

Mode of repayment

Solution

Question 8

a and b

only a

a and c

a, b and c

Solution

Question 9

High cost of borrowing from informal sources.

Borrowers wish to set up small scale enterprises.

Borrowers need more money but cannot ask.

Lending in rural areas adds more to the growth of financial insitututions.

Solution

Question 10

Regional Rural Bank

Group members

Non-government organisation

Local government

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.