Practice the AP 9th Class Social Bits with Answers Chapter 9 Credit in the Financial System on a regular basis so that you can attempt exams with utmost confidence.
AP State Syllabus 9th Class Social Bits 9th Lesson Credit in the Financial System with Answers
Choose the correct answer.
Question 1.
One can withdraw money in cash or make payments by
A) Cheque
B) Promissory note
C) D.D
D) Ornaments
Answer:
A) Cheque
Question 2.
…………… acts as supervisory Bank.
A) CBI
B) RBI
C) SBI
D) BOI
Answer:
B) RBI
Question 3.
Banks in India hold about ………….. % of their deposits as cash.
A) 20%
B) 10%
C) 15%
D) 25%
Answer:
C) 15%
Question 4.
Banks make use of the deposits to meet the requirements of the people
A) Personal
B) Financial
C) Loan
D) None of the above
Answer:
C) Loan
Question 5.
One of the major reasons for indebted¬ness is the need to borrow for ……………… requirements.
A) Medical
B) Educational
C) Cultural
D) None of the above
Answer:
A) Medical
Question 6.
In the areas, the demand for credit is for crop production.
A) Urban
B) Semi-urban
C) Rural
D) Tribal
Answer:
C) Rural
Question 7.
Lenders may demand
A) Bribe
B) Interest
C) Both A & B
D) Collateral
Answer:
D) Collateral
Question 8.
An example for collateral
A) Livestock
B) Deposits
C) Vehicle
D) All of the above
Answer:
D) All of the above
Question 9.
Depending on the nature of the lender and the borrower, the ……………. of credit vary.
A) Terms
B) Interest
C) Amount
D) None of the above
Answer:
D) None of the above
Question 10.
Formal credit organisations in rural India
A) CBI
B) NABARD
C) Axis Bank
D) Micro finance organisations
Answer:
B) NABARD
Question 11.
The ideal number of members in a SHG is
A) 15 – 20
B) 30 – 40
C) 20 – 30
D) 5 – 10
Answer:
A) 15 – 20
Question 12.
Banks are willing to lend to the poor women when organised in
A) Associations
B) SHGs
C) Partnerships
D) None of the above
Answer:
B) SHGs
Question 13.
Banks charge a interest rate on loans than what they offer on deposits.
A) Higher
B) Lower
C) Equal
D) Variable
Answer:
A) Higher
Question 14.
Primary source of income for banks is
A) RBI Help
B) Government Help
C) Difference of interest on loans and deposits
D) Fixed deposits
Answer:
C) Difference of interest on loans and deposits
Question 15.
Credit from this/these is safe
A) Cooperatives
B) Banks
C) SHG
D) All the three
Answer:
D) All the three
Question 16.
………… is informal borrowing.
A) From the lender
B) From cooperative
C) From Bank
D) From SHG
Answer:
A) From the lender
Question 17.
……………. of rural credit is available from banks.
A) 1/6th
B) 1/5th
C) 1/4th
D) 2/5th
Answer:
A) 1/6th
Question 18.
Out of 14 crore farmers ………….. crore have loan accounts.
A) 3.5
B) 5.3
C) 9.8
D) 8.9
Answer:
B) 5.3
Question 19.
Expand NGO
A) New Government Office
B) Non-Government Organization
C) Neo Government Organisation
D) National Government Office
Answer:
B) Non-Government Organization
Question 20.
Expand SHG
A) Self Help Group
B) Sure Help Group
C) Self Heal Group
D) Self Help Gang
Answer:
A) Self Help Group
Read the following text and answer the questions that follow.
The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the formal loans, the loans from banks and cooperatives, the informal loans include loans from moneylenders, traders, employers, relatives and friends,etc. You can see the various sources of credit to rural households in India. Out of every 100 rupee credit required by rural families, Rs.25 was available from commercial banks. Besides banks, the other major source of cheap credit in rural areas is the cooperative societies (or co-operatives). There are several types of co-operatives such as farmers’ co-operatives,weavers’ cooperatives, etc. You will also notice moneylenders are an important section of informal credit providers in India.
Question 21.
How many types of loans are there?
A) 4
B) 3
C) 2
D) 5
Answer:
C) 2
Question 22.
From where do we get a formal loans?
A) Banks
B) Moneylenders
C) Financial companies
D) Friends
Answer:
A) Banks
Question 23.
Who provide informal loans
A) Moneylenders
B) Banks
C) Co-operatives
D) Friends
Answer:
A) Moneylenders
Study the table and answer the given questions.
Question 24.
Who gets more loans informal credit?
A) Rich households
B) Poor households
C) Widows
D) Children
Answer:
A) Rich households
Question 25.
Which section of people get loans in informal credit?
A) Rich households
B) Poor households
C) Children
D) None
Answer:
B) Poor households
Question 26.
How many types of credits are there?
A) 2
B) 3
C) 4
D) 5
Answer:
A) 2
Question 27.
How much credit is taken by poor households?
A) 30%
B) 40%
C) 20%
D) 10%
Answer:
B) 40%
Question 28.
How much credit is taken by rich households?
A) 21%
B) 17%
C) 13%
D) 10%
Answer:
A) 21%
Question 29.
7% of credit is taken by
A) Poor households
B) Rich households
C) Well-off households
D) Households with few assets
Answer:
D) Households with few assets
Question 30.
Who controls the circulation of money in India?
A) NABARD
B) NAFED
C) RBI
D) SBI
Answer:
C) RBI
Question 31.
Present R.B.I. Governer
A) D. Subba Rao
B) Raghu Ram Rajan
C) Urjit Patel
D) Sakthikanta Das
Answer:
D) Sakthikanta Das
Question 32.
Which of those is NOT a function of the Reserve Bank of India?
A) Accepting deposits from the general public
B) Printing and issuing of currency notes
C) Acting as an advisory body to the government on financial and economic policies
D) Acting as a custodian of the foreign reserves of the country
Answer:
A) Accepting deposits from the general public
Question 33.
Sekhar has a savings account in a bank with an annual interest rate of 5%. If the inflation rate goes up to 7%, what will happen to the purchasing power of Sekhar’s savings?
A) It will increase
B) It will decrease
C) It will remain the same
D) Can’t say as the actual money in Sekhar’s account is not given
Answer:
B) It will decrease