question_answer4) Tick the correct answer. After the transaction between Salim and Prem, (i) Salim's balance in his bank account increases, and Prem's balance increases. (ii) Salim's balance in his bank account decreases and Prem's balance increases. (iii) Salim's balance in his bank account increases and Prem's balance decreases.View Answer play_arrow
|Why did they need credit? What was the risk? What was the outcome?|
question_answer9) A House Loan Megha has taken a loan of `5 lakh from the bank to purchase a house. The annual interest rate on the loan is 12% and the loan is to be repaid in 10 years in monthly instalments. Megha had to sumbit to the bank, documets showing her employment records and salary before the bank agreed to give her the loan. The bank retained as collateral the papers of the new house, which will be returned to Megha only when she repays the entire loan with interest. Fill the following details of Megha's housing loan.
|(a) Loan amount (In Rupees) (b) Duration of loan (c) Documents required (d) Interest rate (e) Mode of repayment (f) Collateral|
question_answer12) Fill in the blanks choosing the correct option from the brackets. While taking a loan, borrowers look for easy terms of credit. This means...... (low/high) interest rate,...... (easy/tough) condition; for repayment,............ (less/more) collateral and documentation requirements.View Answer play_arrow
question_answer14) Loans from Co-operatives Besides banks, the other major source of cheap credit in rural areas are the co-operative societies (or co-operatives). Members of a co-operative pool their resources for co-operation in certain areas. There are several types of co-operatives possible such as farmers co-operatives, weavers co-operatives, industrial workers co-operatives, etc. Krishak Co-operative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Co-operative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Co-operative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.View Answer play_arrow
question_answer18) Tick the correct answer. (i) Over the years, Rama's debt (a) will rise. (b) will remain constant. (c) will decline. (ii) Arun is one of the few people in Sonpur to take a bank loan because (a) other people in the village prefer to borrow from the moneylenders. (b) banks demand collateral which everyone cannot provide. (c) interest rate on bank loans is same as the interest rate charged by the traders.View Answer play_arrow
question_answer34) In India about 80% of farmers are small farmers, who need credit for cultivation. (a) Why might banks be unwilling to lend to small farmers? (b) What are the other sources from which the small farmers can borrow? (c) Explain with an example how the terms of credit can be unfavorable for the small farmer. (d) Suggest some ways by which small farmers can get cheap credit to.View Answer play_arrow
question_answer35) Fill in the blanks. (i) Majority of the credit needs of the................. households are met from informal sources. (ii) .................. costs of borrowing increase the debt-burden. (iii) .................. issues currency notes on behalf of the Central Government. (iv) Banks charge a higher interest rate on loans than what they offer on.................. (v) .................. is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.View Answer play_arrow
question_answer36) Choose the most appropriate answer. (i) In a SHG most of the decisions regarding savings and loan activities are taken by (a)bank (b) members (c) non-government organization (ii) Formal sources of credit does not include (a) banks (b) co-operatives (c) employersView Answer play_arrow
|Occupation||Reason for Needing a Loan|
|Construction worker Graduate student who is computer literate Migrant labourer in Delhi A person employed in government service Household maid Small trader Auto rickshaw driver A worker whose factory has closed down|
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