Money and Credit
Money, banking, and credit concepts including formal/informal sources, collateral, interest rates, and microfinance
Questions
A majority of the credit needs of the ________ households are met from informal sources.
- primary
- poor
- single income
- multiple income
- none of these
_____________ costs of borrowing increase the debt - burden.
- High
- Low
- Fix
- Fit
- None of these
__________________ issues currency notes on behalf of the Central Government.
- ABN
- SBI
- RBI
- PNB
- None of these
Banks charge a higher interest rate on loans than what they offer on __________.
- debits
- credits
- currency
- deposits
- none of these
__________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
- Right to ownership
- Collateral
- Source
- Firm
- None of these
In a barter system goods are directly exchanged without the use of
- formal papers
- weights
- money
- people
- none of these
In a SHG most of the decisions regarding savings and loan activities are taken by
- banks
- members
- non - government organisations
- politicians
- none of these
Most loans from informal lenders carry a very high interest rate and do little to increase the income of the
- borrowers
- lenders
- people
- buyers
- None of these
Formal sources of credit do not include
- banks
- cooperatives
- employers
- securities
- none of these
Grameen Bank of Bangladesh is one of the biggest success stories in reaching out to the poor to meet their credit needs at
- first rates
- same rates
- reasonable rates
- best rates
- None of these