Fixing Formal Credit

Q. The formal sector meets only about half of the total credit needs of the rural people. The remaining credit needs are met through the informal sources. Most of the loans from the informal lenders have very high interest rates and do little to increase the income of the borrowers.

What do you suggest is the best way to reduce the dependence on informal credit?

1. Increase in the lending capacity of banks
2. Increase in the lending capacity of cooperatives
3. Increase in the lending capacity of moneylenders
4. Increase in the lending capacity of both banks and cooperatives

Q. When compared to formal lenders, most informal lenders charge a rate of interest.

1. higher
2. lower
3. zero
4. minimum

Q.

What is the full form of NABARD?

Q. Most of the credit needs of poor households in urban and rural areas of India are met by __________.

1. cooperative banks
2. commercial banks
3. informal sources of credit
4. formal sources of credit

Q. What is the name of the bank that helps and promotes agricultural and rural development?

1. Reserve Bank of India
2. State Bank of India
3. National Bank for Agricultural and Rural Development
4. Regional Rural Bank

Q. There is a bank called NABARD, which has been functioning in India to help the poor farmers in rural areas. Choose the correct set of functions of NABARD from the list given below.

(i) Helping poor prople in rural areas with loans
(ii) Lending money for agricultural activities
(iii) Promoting equitable and sustainable agriculture

1. Only (i)
2. Only (ii)
3. Only (iii)
4. (i), (ii), and (iii)

Q. is the bank that provides and promotes rural development by offering loans.

1. RBI
2. NABARD
3. ICICI
4. PNB