Tag: commercial studies

Questions Related to commercial studies

At the time of independence India had ___________________.

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. no banking system

  2. had very few banks

  3. well developed banking system

  4. fairly developed banking system

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Correct Option: D

Which of these is a Quantitative Method of Credit Control?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Bank Rate

  2. Moral Suasion

  3. Margin Requirements

  4. All of the above.

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Correct Option: A

An asset owned by borrowers and pledged as a guarantee to obtain loan is known as _____ .

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. rate of interest

  2. term of credit

  3. collateral

  4. document

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Correct Option: C
Explanation:

An asset owned by borrowers and pledged as a guarantee to obtain loan is known as collateral.
Collateral is a form of security taken from the borrowers of loan by the banks or co-operative societies to lend loans.
Collateral is a part of terms of credit of the formal sources of credit.

In Self Help Groups, _____ decide the savings and loan activity option.

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. RBI

  2. Co-operatives

  3. Banks

  4. Members

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Correct Option: D
Explanation:

In Self Help Groups, group members decide the savings and loan activity options.
SHG is a mutual help group.
They come together to solve their economic issues and earn income.

Self Help Groups are issued loans at _____ .

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. no interest

  2. reasonable rate of interest

  3. high rate of interest

  4. exorbitant rate of interest.

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Correct Option: B
Explanation:

Self Help Groups issue loans at reasonable rate of interest.
In a SHG, important decisions in regard to loan and savings are taken by group members.
SHG is a mutual help group who provide support among themselves.
They come together to solve their economic issues and earn income.

How many members are there in a Self Help Group?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. 10-15

  2. 10-20

  3. 20-25

  4. 25-30

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Correct Option: B
Explanation:
  • Self Help Group is a small group of 10 to 20 people formed to mutually help each other.
  • SHGs help in promoting self employment, credit, awareness and savings.
  • Banks supports SHGs by means of bank linkage programme.

Self Help Groups have  _____ .

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. mainly encouraged rural women to obtain credit

  2. helped women to become self-reliant

  3. helped women to discuss on relevant issues like health

  4. all of these

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Correct Option: D
Explanation:
SHG is a mutual help group of people who provide support among themselves.
In a SHG (Self Help Group) important decisions in regard to loan and savings are taken by group members.
Self Help Groups issue loans (credit) at reasonable rate of interest.
They come together to solve their economic issues, earn income and become self-reliant.
Helped women to discuss relevant issues like health.

Easy term of credit includes _____ .

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. high rate of interest

  2. lesser number of collateral

  3. higher number of documents

  4. steep condition of repayment

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Correct Option: D
Explanation:

Easy term of credit includes steep condition of repayment.
Tougher terms of credit include higher rates of interest, collateral security and more number of documents related to loan.

Teaser rates are related to which of the following types of loans?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Home Loans

  2. Personal Loans

  3. Auto Loans

  4. Reverse Mortgage Loans

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Correct Option: A
Explanation:

Teaser Rate: A teaser rate is a low adjustable introductory interest rate which is charged to customers during the initial stages of a loan. The rate, which can be as low as zero per cent, but is not permanent. The rate advertised for a loan, credit card or deposit account in order to attract potential customers to obtain the service. Typically the teaser rate is 0%. The teaser rate is only temporary. After its expiration, the rate increases to a normal or much higher than normal rate, and in some cases, the borrower cannot keep up with making payments.

Which one of the following is the apex institution in finance sector of India?

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  1. IDBI

  2. NABARD

  3. NHB

  4. RBI

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Correct Option: D