1. Which one of the following statements is most appropriate regarding transaction made in money?
Answer
Answer: a
Answer
Answer: d
Answer
Answer: d
Answer
Answer: b
Answer
Answer: c
Answer
Answer: c
Answer
Answer: c
Answer
Answer: c
Answer
Answer: d
Answer
Answer: a
Answer
Answer: c
Answer
Answer: a
Answer
Answer: b
Answer
Answer: b
Answer
Answer: c
Answer
Answer: c
Answer
Answer: b
Answer
Answer: b
Answer
Answer: c
Answer
Answer: d
Answer
Answer: c
22. According to Crowther, “____________ can be defined as anything that is generally accepted as a means of exchange and at the same time acts as a measure and as a store of value.”
Answer/Explanation
Answer:
Explanation: Money
23. The modern forms of money include ____________ and ____________ .
Answer/Explanation
Answer:
Explanation: Paper notes; coins
24. A ____________ is the apex institution of monetary system of a country.
Answer/Explanation
Answer:
Explanation: Central Bank (RBI in case of India)
25. Currency (coins and notes) is a ____________ which cannot be refused in payment for transactions.
Answer/Explanation
Answer:
Explanation: Legal tender money
26. The deposits in a bank which are payable on demand are called ____________ .
Answer/Explanation
Answer:
Explanation: Demand deposits
27. ____________ is an agreement whereby a financial institution agrees to lend a borrower a maximum amount of money over a given period of time.
Answer/Explanation
Answer:
Explanation: Credit
28. ‘Low rate of interest’ is a feature of ____________ credit.
Answer/Explanation
Answer:
Explanation: Formal
29. ____________ includes details regarding interest rate, collateral and documentation requirement, and the mode of payment.
Answer/Explanation
Answer:
Explanation: Terms of Credit
30. The situation when it becomes impossible to repay the loan and the borrower adds on a new debt to pay the existing one is known as _________ .
Answer/Explanation
Answer:
Explanation: Debt-trap
31. Money eliminates the need for double coincidence of wants. (True/False)
Answer/Explanation
Answer:
Explanation:
True, as money acts as the medium of exchange.
32. Credit card is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been made. (True/False)
Answer/Explanation
Answer:
Explanation:
False, as it is cheque which is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been made.
33. Informal sector credit includes loans from banks and cooperatives. (True/False)
Answer/Explanation
Answer:
Explanation:
False, as informal sector credit includes loans from friends, relatives, moneylenders, traders etc.
34. Rich households largely depend on informal sources of credit. (True/False)
Answer/Explanation
Answer:
Explanation:
False, as rich households largely depend on formal sources of credit.
35. In formal sector, higher rate of interest is charged. (True/False)
Answer/Explanation
Answer:
Explanation:
False, as higher rate of interest is charged in informal sector and not in the formal sector.
36. In rural areas, the main demand for credit is for building houses. (True/False)
Answer/Explanation
Answer:
Explanation:
False, as in rural areas, the main demand for credit is for crop production.
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