Money and Credit - Worksheet Questions

Money and Credit - Worksheet Questions

• Double Coincidence of Wants (Barter System): Requires both parties in a transaction to want what the other party possesses. An example is needed to demonstrate this requirement.
• Demand Deposits: Funds held in bank accounts that can be withdrawn on demand.
• Rupee as Medium of Exchange: The rupee's wide acceptance as a medium of exchange is explained.
• Bank's Role as Mediator: Banks facilitate transactions between those with excess funds (lenders) and those needing funds (borrowers).
• Disadvantages of Barter System: Three disadvantages of a barter system are needed.
• Credit Requirements for Loan/Credit: The reasons for specifying terms of credit associated with a loan or credit arrangement are required.
• Credit's Role in Development: Credit supports development through examples demonstrating a positive impact.
• Negative Impact of Credit: An example illustrating how credit can negatively impact individuals is necessary.
• Cooperatives' Role in Rural Credit: How cooperatives address rural credit issues are presented.

Five Marks Questions

• Reserve Bank of India's Supervision of Banks: Ways the Reserve Bank of India oversees bank operations are described.
• Formal Credit Sources in India: Two primary formal credit sources in India are identified, and reasons for expanding formal credit are included.
• Importance of Affordable Credit: Five crucial points explaining the importance of low-cost credit for national development are required.
• Dependence on Informal Credit: An explanation highlighting why many impoverished households still rely on informal credit avenues is provided.
• Structure of Self-Help Groups (SHGs): The structure of SHGs is described.
• Advantages of SHGs: Advantages of SHGs are highlighted.
• Difference Between Formal and Informal Credit: A comprehensive comparison of formal and informal credit sources is detailed.

This quiz explores key concepts related to money and credit, focusing on the barter system, bank roles, and the implications of credit. It covers essential terms such as demand deposits and the rupee as a medium of exchange, along with the advantages and disadvantages of credit. Suitable for students learning about financial systems.