Unit 4 Ch 3 : Money and Credit Social Studies - Unit 4 Ch 3 : Money and Credit

1. What is the most essential requirement for taking loan from information services?

1. Collateral security.
2. Bribe.
3. Source from a top officer.
4. None of these.

2. SH G is a group of people usually belonging to:

1. The same caste.
2. Nearby villages.
3. One neighbourhood having same social and economic backgrounds.
4. Different villages.

3. What facilities do the members have who are in the same group?

1. They are not given any facility.
2. They can take small loans from the group itself to meet their needs.
3. They are debarred from the group.
4. No facility is given to them.

4. What benefits are there for a SHG that is regular in savings?

1. The dispute arise after sometimes.
2. They are rewarded by the government.
3. They get jobs in government departments.
4. They are entitled to raise loan from bank in the name of SHG.

1. The passage given above relates to which of the following options:

1. Collateral Credit.
2. Credit recovery is very painful.
3. Failure of Crops.
4. Credit is somewhere beneficial.

2. According to the passage, Swapna faced which of the following options:

1. The crop is hit by pests and the crop fails.
2. She had to sell a part of the land to pay off the debt.
3. Credit left her worse off.
4. All of these.

3. It refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment:

1. Terms and Credit.
2. Credit.
3. Depositor.
4. Borrower.

4. The above passage is an example of:

1. Collateral.
2. Debt Trap.
3. Credit plays a vital and positive role.
4. None of these.

A House Loan
Megha has taken a loan of 5 lakhs from the bank to purchase a house. The annual interest rate on the loan is 12 per cent and the loan is to be repaid in 10 years in monthly installments. Megha had to submit to the bank, documents 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.
Q.1. From which source of credit Megha has taken loan?
Q.2. Explain the terms of credit given in the source.

Which one of the following refers to investment?

Which one of the following is the main source of credit for rich urban households in India?

_____________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

A House Loan

1. The passage given above relates to which of the following options:

1. Collateral Credit.
2. Credit recovery is very painful.
3. Failure of Crops.
4. Credit is somewhere beneficial.

2. According to the passage, Swapna faced which of the following options:

1. The crop is hit by pests and the crop fails.
2. She had to sell a part of the land to pay off the debt.
3. Credit left her worse off.
4. All of these.

3. It refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment:

1. Terms and Credit.
2. Credit.
3. Depositor.
4. Borrower.

4. The above passage is an example of:

1. Collateral.
2. Debt Trap.
3. Credit plays a vital and positive role.
4. None of these.

Getting a loan from bank is much more difficult than taking loan from informal sources. Absence of collateral security and documentation prevents the poors from getting bank loans. Self Help Group is a group of people usually belonging to one neighbourhood having same social and economic backgrounds. They meet and save money regularly as per their ability. Members of the group can take small loans from the group itself to meet their needs. The group charges interest less than moneylenders on these loans. After one or two years, if the group is regular in savings, it becomes eligible for availing loan from the bank. Loan is sanctioned in the name of group and is meant to create self employment opportunities.

Answer the following MCQs by choosing the most appropriate option:

1. What is the most essential requirement for taking loan from information services?

1. Collateral security.
2. Bribe.
3. Source from a top officer.
4. None of these.

2. SH G is a group of people usually belonging to:

1. The same caste.
2. Nearby villages.
3. One neighbourhood having same social and economic backgrounds.
4. Different villages.

3. What facilities do the members have who are in the same group?

1. They are not given any facility.
2. They can take small loans from the group itself to meet their needs.
3. They are debarred from the group.
4. No facility is given to them.

4. What benefits are there for a SHG that is regular in savings?

1. The dispute arise after sometimes.
2. They are rewarded by the government.
3. They get jobs in government departments.
4. They are entitled to raise loan from bank in the name of SHG.