Tag: introduction to money - barter system

Questions Related to introduction to money - barter system

Small farmers borrow money for cultivation from _____.

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

  1. traders

  2. family members

  3. banks

  4. money lenders.

Show answer
Correct Option: D
Explanation:

Small farmers borrow money for cultivation from money lenders.
They borrow money from money lenders because they don't have any form of security (collateral) as requested by the formal sources of credit. 
Small farmers often get exploited with higher interest from money lenders.

In a SHG, important decisions in regard to loan and savings are taken by _____.

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

  1. Government organization

  2. Bank

  3. Non-government organisation

  4. Group Members

Show answer
Correct Option: D
Explanation:

In a SHG (Self Help Group) important decisions in regard to loan and savings are taken by group members. Self Help Groups issue loans at reasonable rate of interest

SHG members usually belong to _____.

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

  1. different states

  2. different neighborhood

  3. one neighborhood

  4. rich family

Show answer
Correct Option: C
Explanation:

1:Self Help Group members usually belong to one neighbourhood.
2:Self Help Group is a small group of 15 to 20 people formed to mutually help each other.
3:Banks supports SHGs by means of bank linkage programme.

Organisations of rural poor, that help borrowers to overcome the problem of lack of collateral are _____.

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

  1. Self Help Groups

  2. Service Holder Groups

  3. Self Housing Groups

  4. Soul Harassing Groups

Show answer
Correct Option: A
Explanation:

Self Help Group is a small group of organization of 15 to 20 people formed to mutually help each other.
Self Help Groups help in promoting Self Employment , credit, awareness and savings.
Banks support SHGs by means of Bank Linkage programme.

The poor are usually rejected bank loans in the absence of _____.

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

  1. ration card

  2. cash money

  3. collateral

  4. account with that bank

Show answer
Correct Option: C
Explanation:

Collateral is a type of a security taken by the banks from its customers.Collateral can be in the form of fixed deposit,  property documents, etc.Rural farmers/ Marginal farmers/ Landless labourers occupy the majority of rural poor population and savings of rural poor is negligible. 
Providing collateral to bank for borrowing loans is a big challenge for rural poor.
Thus banks usually reject loans to rural poor due to the non presence of collateral security by poor.

Saving per member of a SHG varies from Rs _____ to Rs _____ or more, depending upon the ability of the people to save.

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

  1. 10; 40

  2. 15; 65

  3. 25; 100

  4. 40; 150

Show answer
Correct Option: C
Explanation:

Saving per member of a SHG varies from Rs 25 to Rs 100 or more, depending upon the ability of the people to save.
Savings led to capital formation and later led to investment in ventures.
SHGs led to economic empowerment of women in India.

What do you mean by SHGs?

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

  1. Self Help Groups

  2. Service Holder Groups

  3. Self Housing Groups

  4. Soul Harassing Groups

Show answer
Correct Option: A
Explanation:

Self Help Groups is a small group of 15 to 20 people formed to mutually help each other.
Self Help Groups help in promoting self employment, credit, awareness and savings.
Banks in India supports SHGs by means of bank linkage programme.
SHGs led to economic empowerment of women in India.

Which among the following are the credit rating agencies of India?
1. CRISIL 2. CARE 3.ICRA 4.ONlCRA

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

  1. 1 and 3

  2. 1,2 and 3

  3. 1,3 and 4

  4. All of them

Show answer
Correct Option: D
Explanation:

CRISIL - Credit Rating Information Services of India Limited
CARE -  Credit Analysis and Research
ICRA - Investment information and credit rating agency

ONICRA - Onida Individual Credit Rating Agency of India

The currency convertibility concept originated in _____.

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

  1. wells agreement

  2. Bretton woods agreement

  3. Taylors agreement

  4. none of the above

Show answer
Correct Option: B
Explanation:

The currency convertibility concept was finalized between 1968-1973 in Bretton Woods Agreement. 
The currency convertibility was made available for current account transactions and trade.

The _____ supervises the functioning of formal sources of loans.

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

  1. State Bank of India

  2. Central Bank of India

  3. Reserve Bank of India

  4. Finance Minister

Show answer
Correct Option: C
Explanation:

The Reserve Bank of India supervises the functioning of formal sources of loans.
RBI is also the Central Bank of India.
RBI doesn't supervise the informal sources of credit institutions.