Time Left:
600
sec
1. Which source provided the highest share of rural credit in 2012?
A. Banks
B. Cooperatives
C. Moneylenders
D. Employers
2. Poor households mainly borrow from
A. Formal sources
B. Informal sources
C. Government banks
D. Cooperatives
3. Rich households mostly borrow from
A. Relatives
B. Informal sources
C. Formal sources
D. Employers
4. Debt trap occurs when
A. Interest is very low
B. Loan repayment is easier
C. Debt grows larger than income
D. Loan is interest-free
5. The main reason poor people cannot get bank loans is
A. Banks are absent in rural areas
B. Lack of collateral and documents
C. Banks don’t accept savings
D. Government restrictions
6. Moneylenders give loans without collateral because
A. They charge higher interest
B. They are charitable
C. They are controlled by RBI
D. They provide government funds
7. What is the main idea behind Self Help Groups (SHGs)?
A. To promote barter system
B. To pool savings of the poor
C. To replace banks
D. To provide free money
8. A typical SHG has how many members?
A. 5–10
B. 15–20
C. 25–30
D. 30–50
9. Who mainly benefits from SHGs?
A. Large landowners
B. Urban traders
C. Poor women
D. Bank officers
10. Why are banks willing to lend to SHGs?
A. They have no collateral needs
B. Group is responsible for repayment
C. They always get profit
D. Government funds them directly
11. Which of the following is NOT a modern form of money?
A. Currency notes
B. Coins
C. Grain
D. Bank deposits
12. Who is authorised to issue currency in India apart from RBI?
A. Ministry of Finance
B. No one
C. State governments
D. Cooperative banks
13. Which is a feature of demand deposits?
A. Cannot be withdrawn
B. Withdrawable anytime
C. Fixed for long term
D. Always in foreign currency
14. Why can no one refuse payments made in rupees in India?
A. Rupee has intrinsic value
B. Rupee is backed by gold
C. Law recognises it as legal tender
D. It is available everywhere
15. Cheque is a
A. Bank note
B. Paper instructing a bank to pay
C. Loan paper
D. Collateral document
16. The major portion of bank deposits is used for
A. Paying salaries
B. Giving loans
C. Government expenses
D. Foreign exchange
17. Why do banks charge higher interest on loans than deposits?
A. To cover printing costs
B. To earn profits
C. To avoid losses
D. To pay RBI
18. In Salim’s case, credit helped him to
A. Fall in debt trap
B. Expand production
C. Sell land
D. Leave business
19. In Swapna’s case, credit led to
A. Higher income
B. Debt trap
C. Profit growth
D. No effect
20. Which is an example of collateral?
A. Currency notes
B. A land title
C. A cheque
D. Salary slip
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