3.4 MULTIPLE CHOICE QUESTIONS : (MCQ’s)
1. Currency is issued by ____________ .
2. Which one of the following takes most of the decisions regarding saving and loan activities in self-help groups?
3. Which of the following is a formal source of credit?
4. The exchange in which the goods are exchanged for goods is called _____
5. Bank in which savings are deposited ____.
6. _________ acts as an intermediate in the exchange process it is called as medium of exchange .
7. In _________ the Reserve Bank of India issues currency notes on behalf of the central government .
8. Banks accept the deposits and also pay an amount as _________ on the deposits .
9. People also have the provision through bank that they can _________ money as and when required .
10. The deposits in the bank accounts can be withdrawn on demand , these deposits are known as __________ .
11. A _________ is a paper instructing the bank to pay a specific amount .
12. Banks in India these days hold about ______ per cent of their deposits as cash .
13. Banks use major portion of the deposits to extend ________ .
14. _________ charge a higher interest rate on loans than what they offer on deposits .
15. __________ loan refers to an agreement in which the lender supplies the borrower with money .
16. In _________ areas , the main demand for credit is for crop production .
17. _________ usually take crop loans at the beginning of the season and repay the loan after harvest .
18. Every loan agreement specifies an ________ rate which the borrower must pay .
19. __________ activity requires loans or credit .
(a) Traders
(b) Cooperative societies
(c) Moneylenders
(d) Friends and relatives
Answers:
1.(a) RBI on behalf of the central government