MONEY AND CREDIT

1 MARK QUESTION

Q 1 ममदद्रा क्यद्रा हह ?

What is money?

Ans 1 Money is a medium of exchange.

Q 2 आवश्यकतद्राओ कद्रा ददोहरद्रा ससंयदोग कदो पररभद्राषषित करर ?

Define double coincidence of wants?

Ans 2 Both parties have to agree to sell and buy each others commodities.

Q 3 चरक सर आप क्यद्रा समझतर हह ?

What do you mean by cheque?

Ans 3 A cheque is a paper instructing the bank to pay a specific amount from the persons
account to the person in whose name the cheque has been made.

Q 4 स्व-सहद्रायतद्रा सममह क्यद्रा हह ?

What are SGHS?

Ans 4 Self help group is a latest idea to provide loans to poor through their own organisation
, A self help group has 15-20 members usually belonging to one neighbourhood who meet
and save money regularly.

Q 5 भद्रारत मम करम ससी नदोट ककौन ज I ररी करतद्रा हह ?

Who issue currency notes in India?

Ans 5 RBI (RESERVE BANK OF INDIA)

3 MARK QUESTIONS

Q 1 उधद्रारदद्रातद्रा समरर्थक ऋण I धद्रार ककी मद्राग

सं क्ययों करतद्रा हह ?

Why do lenders ask for collateral? Analyse the reasons.

Ans. 1 lenders ask for collateral as security against loans, if the borrowers fails to repay the
loan or defaults on repayment of the loan the lender has the right to sell the collateral to
recover the payment.

Q 2 How does the reserve bank of India supervise the functioning of banks?
Ans 2 (1) It monitors the balance kept by banks for day to day transaction.

(2) It checks that the banks give loans just not to profit making.

(3) Bank have to give details about lenders. Borrowers and interest rate to RBI.

Q 3 हमम भद्रारत मम ऋण कर औपचद्राररक सदोतयों कद्रा षवस्तद्रार करनर ककी आवश्यकतद्रा क्ययों हह ?
Why do we need to expand formal sources of credit in India?
Ans 3(1) To save the poor farmers and workers from the exploitation by the informal sector
credit.
(2) Informal sector charges a higher interest on loans.
(3) It can fulfil various needs of the people through providing cheap and affordable credit.

Q 4 गद्रामसीण उधद्रारकतद्रार्थ ऋण कर ललिए अनकौपचद्राररक करत्र पर क्ययों ननभर्थर करतर हह?

Why do the rural borrowers depend on the informal sector for credit?

Ans 4 (1) Banks are not present everywhere in rural India.

(2) Bank loan require proper document and collateral.

(3) Money lenders know the borrowers personally and hence are often willing to give a loan
without collateral.

5 MARKS QUESTIONS

प्रश्न-1 अनतररक्त धन वद्रालिर और धन कर जरूरतमसंद लिदोगयों कर बसीच बहक ककस प्रकद्रार

मध्यस्रतद्रा प्रदद्रान करतर हह ?

How do banks mediate between those who have surplus money and those who need
money?

Ans-1-Banks make deposits of funds of those people who have surplus of money with them.

2-Further it lends this money to those who need it.

3- Banks keep a proportion of reserve out of it.

4-It advances money to the borrower in order to earn income out of it.

5-Banks earn interest income from all such transactions.

प्रश्न-2 भद्रारत ककी अरर्थव्यवस्रद्रा पर बहक ककस प्रकद्रार महत्वपण

म र्थ भलम मकद्रा ननभद्रातर हह ?स्पष्ट
ककीजजयर How do banks play an important role in the economy of India? Explain

Ans-2 (i) Banks provides adequate funds for capital formation that helps in the promotion of
economic growth.
(ii )Businessmen get loans of various kinds so as to meet its emergent needs.

(iii) Banks provides loans to industry and thus speeds up the wheel of manufacturing units.

(iv)Banks advance loans to different people for different activities.

(v)Debit/Credit card, Net banking and e-wallets are useful for shopping and withdrawal of
funds, anywhere in the world.

प्रश्न-3 भद्रारत मम ककौन ससी सरकद्राररी ससंस्रद्रा ऋणयों कर औपचद्राररक स्त्रदोतयों ककी कद्रायप्र
र्थ णद्रालिरी पर
नज़र रखतसी हह ? इस ससंस्रद्रा ककी कद्रायप्र
र्थ णद्रालिरी कदो स्पष्ट ककीजजयर I

Which Government body supervises the functioning of formal sources of loans in India?
Explain its functioning.

Reserve Bank of India supervises the functioning of formal sources of India.

(i)It controls over monetary system of India.

(ii)RBI has monopoly right over note issue system.

(iii)It performs all the financial transactions on behalf of government.

(iv)It provides financial help to banks at the time of financial crisis.

(v)It is a custodian of foreign exchange reserves and acts as a clearing house.

प्रश्न- 4 सद्राख कर स्त्रदोतयों कर ददो वगर्थ ककौन सर हह? प्रत्यरक ककी चद्रार –चद्रार षवशरषितद्राओसं कद्रा उल्लिरख
ककीजजयर I

What are the two categories of sources of credit? Mention four features of each.

Ans-4-Formal sources of credit and Informal sources of credit.

FORMAL SOURCES----It provides credit facilities after performing some formalities

This source does not exploit its customers as regards with accounts and interest liability

It has a lesser rate of interest .

This source of credit works under RBI supervisions.

It includes banks and cooperative societies.

INFORMAL SOURCES—It does not require any formality while getting loans.

It exploits its customers badly as regard with accounting entries and interest liabilities.

Higher rate of interest.

It does not have supervision of any institution.

It includes money lenders, landlords ,friends and relatives.

प्रश्न-5 गररीबयों कर ललिए स्वयसं सहद्रायतद्रा सममहयों कर ससंगठनयों कर पसीछर ममलि षवचद्रार क्यद्रा हह ?

What is the basic idea behind the SHGs for the poor?

Ans-5 *To promote saving habits among members.

*To meet loan requirements of members without any collateral security.

*Helps in making women section self reliant.

*Helps members by providing cheaper loan facilities.

*Brings awareness among members regarding health and nutrition.