Test: Money And Credit - 3 | 10 Questions MCQ Test

QUESTION: 1

A bill of exchange promising payment to a certain sum written there in:

A.
Currency
B.
Collateral
C.
Promisory note
D.
Bank rate

Solution: The bill of exchange contains an unconditional order to pay a certain amount on an agreed date while the promissory note contains an unconditional promise to pay a certain sum of money on a certain date. In India these instruments are governed by the Indian Negotiable Instruments Act 1881.

QUESTION: 2

National Sample Survey Organisation is a:

A.
Commercial bank organisation
B.
An organisation of World Bank
C.
An organisation associated with Indian Standard Institute
D.
An institution responsible to collect data on formal sector credit.

Solution:

National Sample Survey Office (NSSO) The National Sample Survey Office(NSSO) in India is a unique setup to carry out surveys on socio-economic, demographic, agricultural and industrial subjects for collecting data from house holds and from enterprises located in villages and in the towns.

QUESTION: 3

Which agency is not included in informal loan sector or agency:

A.
Bank
B.
Village money lender
C.
Trader
D.
Relative of borrower

Solution:

Banks and cooperative societies constitute the formal sector of credit. Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit.

QUESTION: 4

In SHG most of the decisions regarding savings and loan activities are taken by:

A.
Bank
B.
Members
C.
Non-government organisations
D.
LIC

Solution: The most of the decisions regarding savings and loan activities are taken by the members of that particular Self Help Group (SHGs)

QUESTION: 5

The exchange of goods for goods is:

A.
banker of option
B.
bills of exchange
C.
barter
D.
currency

Solution: Barter system means the trade in which transaction is done with goods. it was used in the ancient times.

QUESTION: 6

Formal sources of credit do not include:

A.
Banks
B.
Co-operatives
C.
Employers
D.
LIC

Solution:

1. Formal sources of credit do not include employers as there is no role of these employers all these works are related to banks and the cooperatives.
2. Employers are there merely to serve the bank staff and do the work as it is asked to do by their owner.

QUESTION: 7

Currency is issued by:

A.
RBI on behalf of central government
B.
By president of India.
C.
By finance minister
D.
None of them

Solution:

QUESTION: 8

Gold mohar, a coin so named was brought in circulation by:

A.
Sher Shah Suri
B.
Akbar
C.
Ashok
D.
Shivaji

Solution:

Gold Mohar as coin so named was brought in circulation by Sher Shah Suri. Later, it was standardized by the Mughal emperors.

QUESTION: 9

The founder of Grameen bank of Bangladesh is:

A.
Amartya Sen
B.
Mohammad Salim
C.
Mohammad Yunus
D.
None of the above

Solution:

C is the correct option.Grameen Bank, Bangladeshi bank founded by economist Muhammad Yunus as a means of providing small loans to poor individuals (see microcredit). In 2006 Grameen and Yunus were awarded the Nobel Prize for Peace.

QUESTION: 10

Security (pledge, mortgage) against loan:

A.
Collateral
B.
Token Coins
C.
Promisory Note
D.
Currency

Solution:

The term collateral refers to an asset that a lender accepts as security for a loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.