Time: 1 hour
M.M.: 30
Instructions: Attempt all questions.
Question numbers 1 to 5 carry 1 mark each.
Question numbers 6 to 8 carry 2 marks each.
Question numbers 9 to 11 carry 3 marks each.
Question numbers 12 & 13 carry 5 marks each.
Q1. Which of the following is a function of money? (1 Mark)
(a) Source of entertainment
(b) Medium of exchange
(c) Symbol of culture
(d) Unit of inheritance
Q2. Who issues currency notes on behalf of the central government in India? (1 Mark)
(a) State Bank of India
(b) Finance Ministry
(c) Reserve Bank of India
(d) Planning Commission
Q3. What is the major drawback of the barter system? (1 Mark)
(a) Lack of variety
(b) Double coincidence of wants
(c) Low production
(d) Lack of labor
Q4. Define credit in simple terms. (1 Mark)
Q5. Name any one modern form of money. (1 Mark)
Q6. How does a cheque function as a medium of exchange? (2 Marks)
Q7. Give any two features of demand deposits. (2 Marks)
Q8. Mention any one positive and one negative effect of credit, using examples. (2 Marks)
Q9. Explain any three terms that make up the Terms of Credit. (3 Marks)
Q10. What is the difference between formal and informal sources of credit? Give any three points. (3 Marks)
Q11. Describe the role of the Reserve Bank of India in supervising banks. (3 Marks)
Q12. What are Self Help Groups (SHGs)? Explain any four ways in which they benefit the rural poor. (5 Marks)
Q13. Explain the need for increasing formal sector credit in India. How can this help in reducing dependence on informal loans? (5 Marks)
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