MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Cooperatives

Which of the ...

Question

Which of the following can be used as collateral for a cooperative to obtain a loan from a bank?

A

Farmlands of the members

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Agricultural produce

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Deposits of the members

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Gold owned by the members

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Deposits of the members
In a cooperative society, each member pools in money periodically. The cooperative uses this pooled money as a collateral to obtain a loan. This loan is further lent to the members of the cooperative at a lower rate of interest.

Suggest Corrections

thumbs-up

3

Similar questions

Q. In obtaining a home loan , which of the following might be considered as collateral?

Q. Statement: Shalini made an application to the bank for a loan of

R s . 1, 80, 000

by mortgaging her house to the bank and promised to repay it within five years.
Assumptions:
I. The bank has a practice of granting loans for

R s . 1, 00, 000

and above.
II. The bank accepts house as a collateral security against such loans.

Q. Rekha obtained a loan of 3000 from a cooperative bank for 2 years at the rate of 7% per annum . Find the simple interest she has to pay to the bank after 2 years .

Q. A company took a loan of ₹ 4,00,000 from Bandhan Bank Ltd. and issued 8% Debentures of ₹ 4,00,000 as a collateral security.

Q. S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% p.a. interest. The company issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State Bank of India as Collateral Security. Pass necessary Journal entries for the above transactions:
(i) When company decided not to record the issue of 10% Debentures as Collateral Security.
(ii) When company decided to record the issue of 10% Debentures as Collateral Security.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Cooperatives

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard X Economics

Join BYJU'S Learning Program

CrossIcon