Download CBSE CLASS X IMPORTANT MCQ'S MONEY AND CREDIT ECONOMICS and more Exams Economics in PDF only on Docsity! JAI GURU DEV MAHARISHI VIDYA MANDIR SR.SEC.SCHOOL SOCIAL SCIENCE-Economics GRADE X Money and Credit MCQ’S Day 2 Loan Activities in Bank: The three loan activities of the banks are: People have extra cash with them. Those having extra cash open a bank account in their name and deposit the surplus money there.Out of the total money deposited with the banks, 15% of it is kept as minimum cash balance to pay to the depositors who might come to withdraw money from the bank on any given day. Rest of the amount is used to extend loan to the borrowers.Due to the following reasons it is necessary for the banks and the cooperative societies to extend their lending activities in the rural areas:There is limited availability of the formal sector credit sources in the rural areas.The poor borrowers are bound to take loan from the moneylenders at high rate of interest.Due to high rate of interest they are not able to repay the loan and caught in debt- trap.Formal sector credit is required in the rural areas to expand the farming and small scale business activities. It is important for the individual development of the people in the rural areas One mark Questions:- 1 Raghav has surplus money so he opens a bank account and deposits in it. Whenever he needs money. he can go to his bank and withdraw from there. This kind of deposit with the banks are known as (a) Demand deposit (b) Term deposit (c) Fixed deposit (d) Surplus deposit 2 A person can withdraw money by issuing a cheque. What is a cheque? (a) Loan taken by the bank. (b) Loan taken by the depositor from the bank. (c) Paper instructing the bank to pay a specific amount. (d) Paper valid to withdraw money . 3 In agricultural stage grains were used as (a) Money (b) commodity (c) Ingredient (d) none of these 4. What is the most important function of the banks? (a) Accept deposits and extend loans. (b) Give loans to government. (c) Open as many bank accounts as possible. (d) Give loans to businesses. 5.Banks give out loans and charge .......... on the loan amount from the borrower. (a) Rent (b) wages (c) Interest (d) money 6 All the banks act as mediator between and .......... . (a) Rural people, urban people (b) Literates, illiterates (c) People, government (d) Depositors, borrowers 7. Percentage of formal sector in total credit in India in poor household is (a) 15 (b) 20 (c) 70 (d) 80 8. Which among the following lenders will possibly not ask the borrower to sign the terms of credit? (a) Banks (b) Moneylenders (c) Cooperatives (d) Private agencies 9. Chit fund come under (a) Organized credit (b) unorganized credit (c) discounted coupon (d) none of these 10. Method of repayment of loan is called (a) mode of payment (b) method of payment (c) Mode of repayment (d) none of these
