A borrower compares two loans with same nominal rate, but one compounds monthly and the other yearly; the monthly one
Continue readingAuthor: Study Clue
Chapter 14: Credit Situations and Terms of Credit (Set-3)
A borrower chooses a bank because interest is fixed and rules are written clearly A Informal credit B Distress credit
Continue readingChapter 14: Credit Situations and Terms of Credit (Set-2)
A shopkeeper takes a loan to buy more stock for the festival season when sales rise A Consumption loan B
Continue readingChapter 14: Credit Situations and Terms of Credit (Set-1)
A farmer takes a loan to buy seeds and fertilizer before the sowing season A Production loan B Consumption loan
Continue readingChapter 13: Credit and Loan Activities of Banks (Set-5)
A bank receives a ₹10,000 new deposit and CRR is 10%. Ignoring cash leakage, maximum new lending from this deposit
Continue readingChapter 13: Credit and Loan Activities of Banks (Set-4)
When interest is charged on both principal and earlier interest, the method is called A Simple interest B Fixed subsidy
Continue readingChapter 13: Credit and Loan Activities of Banks (Set-3)
Before approving a loan, banks mainly check which single factor to reduce default A Favourite shop name B Borrower’s hobbies
Continue readingChapter 13: Credit and Loan Activities of Banks (Set-2)
When a bank lends money, it is mainly performing which banking function A Exchange rate fixing B Currency printing C
Continue readingChapter 13: Credit and Loan Activities of Banks (Set-1)
Which best describes a bank’s main lending role in an economy A Issuing government orders B Printing currency notes C
Continue readingChapter 12: Modern Forms of Money (Set-5)
Which statement best explains why the “face value” of currency is not the same as its production cost A Value
Continue reading