Appraising of the System

Q.

What is rural credit?

Q. [dummy] Which of the following is a non-institutional source of rural credit?

1. Cooperative socities
2. Money lenders
   
3. RRBs
4. Commercial banks

Q.

Why has rural banking not been able to give adequate credit to farmers?

Q.

Classify rural credit in different categories on the basis of time period.

Q. Grameen Bank is a/an institution.

1. commercial
2. micro-credit
3. cooperative
4. public-sector

Q.

What is the name of the success story that met the credit needs of the poor, at reasonable rates, in Bangladesh?

1. Grameen Bank

2. Reserve Bank

3. Cooperative Bank

4. None of these

Q. What steps can be taken to start the non-farm production activities in the villages?

Q.

State some measures to be taken relating to finance, so that the objective of rural development is achieved.

Q.

Why do farmers borrow?

Q. Credit facilities available in rural areas that are provided to groups of people (called SHGs) are called:

1. Mini-finance
2. Micro-finance
3. Low Finance
4. Slow Finance

Q.

What are the two segments of the rural credit system?

Q. Expand SHGs in the context of rural development.

1. Self-Help Groups
2. Safe Healthy Growth
3. None of these
4. Service Help Growth

Q. Consider the following statements about the idea of 'micro-finance' in India and select the correct ones using the code give below:
1. Micro-finance is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower.
2. The thrust of the micro finance initiative is to channelize production and consumption credit in multiple does based on the absorption capacity of the prospective borrower.
3. It has evolved through following different models at different times - a 'charity based model' to a 'third-based model' and finally to the 'trust and creditworthiness model'.
4. It was in Australia where evolved the link between microfinance institutions and the formal financial institutions.

1. 1, 3 and 4
2. 1, 2 and 3
3. 2, 3 and 4
4. 1, 2, 3 and 4

Q. Which co-operative institutions provide credit in the agricultural sector?

1. Land Development Banks
2. Both 'a and b'
3. Neither a nor b
4. Cooperative banks

Q. Rural credit provided by cooperative societies suffers from the problem of undue delays.

1. True
2. False

Q. Cooperative credit institutions have covered only _______ of the rural population.

1. 60%
2. 65%
3. 78%
4. 70%

Q. 'Credit has its own unique role for development'. Justify the statement with arguments.

Q. What are the traditional sources of agricultural credit termed as?

1. Non-institutional sources
2. Formal sources
3. Institutional sources
4. None of the above

Q. Agricultural credit can be categorised on the basis of __________.

1. purpose of credit
2. objective of credit provider
3. time period of credit
4. both 'a and c'

Q. The Kisan Credit Card Yojna was started in 1998-99 to _____________.

1. To improve social condition of the farmers
2. None of these
3. To improve political condition of the farmers
4. To improve economic condition of the farmers

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

1. Self Help Groups
2. Service Holder Groups
3. Self Housing Groups
4. Soul Harassing Groups

Q. Micro-credit or micro-finance is a novel approach to banking with the poor. In this approach bank credit is extended to the poor through ______________.

1. Self Help Groups
2. Anganwadis
3. Cooperative Credit Societies
4. Reserve Bank of India

Q. Which of the following is not a function of a Rural Bank?

1. To accept deposits
2. To grant advances
3. To waive loans
4. To supply inputs to farmers

Q. 'Commodity Service method' is another name for:

1. Expenditure method
2. Value-added method
3. None of these
4. Income method

Q. What is the name of the success story that met the credit needs of the poor, at reasonable rates, in Bangladesh?

1. Grameen Bank
2. Reserve Bank
3. Cooperative Bank
4. Janta Bank

Q. In order to fulfill the financial requirements of the ____________ in rural India, appropriate and specialised credit agencies are needed.

1. agricultural sector
2. tertiary sector
3. none of the above
4. zamindars

Q. What is unproductive credit?

1. Finance used to purchase seeds, fertilisers, pesticides and related agricultural tools.
2. Credit taken for the purpose of permanently enhancing the productivity of land.
3. Credit that can be repaid using increased income generated from productive use of finance.
4. Credit required to meet consumption expenditures for social and religious purposes.

Q. Select the reasons for the failure of the credit systems to be inclusive.

1. Few Branches
2. Complex Process
3. Full Insurance
4. High Interest
5. Non-productive
6. No Insurance
7. Communication
8. Lack of Staff