Types of Borrowing

Q.

Discuss the importance of credit in rural development.

Q.

Micro Finance is a credit scheme extended to poor through Self Help Groups (SHGs).

1. True

2. False

Q.

To solve the various problems associated with rural credit, enumerate the objectives which should be followed by the cooperative credit societies.

Q.

Money lenders are institutional sources of agricultural credit.

1. True

2. False

Q.

What is the 'collateral' demand that lenders make against loans?

1. Vehicle of the borrower

2. Building of the borrower

3. Both (a) and (b)

4. None of these

Q.

It has been realised that agricultural finance is not available in sufficient quantity at right time and at reasonable rate of interest. As an agriculturist, suggest any two measures to make the existing system of agricultural finance serve fully the needs of agriculture effectively.

Q. How to effect vant Hoff factor on colligative properties?

Q.

Rural population need short-term loans for

1. For meeting consumption expenditure

2. For buying cattle

3. For paying old debt

4. For buying tractors

Q.

Rural population needs a long-term loan for

1. For buying fertilizers

2. For making minor improvements on land

3. To buy seeds

4. For buying agricultural machinery

Q. The Lead Bank Scheme was introduced in ______.

1. 1968
2. 1969
3. 1971
4. 1970

Q. Non-institutional sources of rural credit still performs a vital role in providing credit for ___________ purposes.

1. productive
2. industrial
3. unproductive
4. none of the above

Q.

Which of the following statements is correct regarding the nationalisation of commercial banks in India?

1. Nationalisation of commercial banks is done to attract FDI in India.

2. Nationalisation of commercial banks is done to eliminate Nationalisationconcentration of economic power in the hands of RBI

3. Nationalisation bank to be the was State Bank of India on 1 January 1949.

4. One of the purposes of nationalisation of the banks is to diversify the flow of bank credit towards the priority sector consisting of agriculture and allied activities, small-scale industries and small businesses.

Q. Fill in the blanks with appropriate alternatives given in the brackets:
In India _____ has the monopoly of note issue.
(Reserve bank of India, Commercial bank, Foreign bank, Co-operative bank)

Q. Which of the following is the main informal source of credit for rural households in India?

1. Friends
2. Relatives
3. Landlords
4. Money lenders

Q. Fill in the blanks with appropriate alternatives given in the brackets:
The Central Bank acts as a ___ of cash reserves of commercial banks in the country. (head, leader, custodian, locker)

Q. How many banks were nationalised in 1969?

1. 16
2. 14
3. 20
4. 15

Q. Which of these is not a function of central bank?

1. Accepting deposits of general public
2. Custodian of Foreign Exchange Reserves
3. Banker's Bank
4. Currency Authority

Q. Describe measures undertaken by the government, to create employment in rural areas and reduce dependence on agriculture.

Q. The rural farmers would avail long-terms loans to .

1. buy machinery
2. buy seeds
3. buy fertilisers
4. hold family weddings

Q. What do you mean by nationalisation of banks?

Q. Explain the 'banker's banks' and 'supervisor' function of the central bank.

Q. Structure of Basel II is based on how many pillars?

1. Two
2. Four
3. Three
4. Five

Q.

Short-term loans are required for purchasing machinery, constructing fences and digging wells. Such loans are generally stretched over a period of 12 months to 3 years.

1. True

2. False

Q. 85% of the loans taken by poor households in the rural areas are from ___.

1. cooperatives
2. local bank
3. government bank
4. informal sources

Q. Borrowing made to meet expenses for the organisation of a wedding will be classified as type of borrowing.

1. small-amount
2. non-productive
3. long-term
4. long-term capital

Q. What is the major source of funds for Land Development Banks (LDBs)?

1. Issue of bonds and debentures.
2. Assistance from commercial banks.
3. All of the above.
4. Loans from RBI.

Q. Which co-operative credit institution provides long-term loans?

1. Land Development Banks
2. NABARD
3. Cooperative Banks
4. None of the above

Q. Give the names of nationalised commercial banks.

Q. Borrowings can be classified into types depending on their usage.

1. 2
2. 3
3. 4
4. 5

Q. In rural areas farmers take credit for _____.

1. Family
2. Health
3. Crop production
4. Education