Author: Study Clue

A farmer takes a loan to buy seeds and fertilizer before the sowing season A Production loan B Consumption loan

A bank receives a ₹10,000 new deposit and CRR is 10%. Ignoring cash leakage, maximum new lending from this deposit

When interest is charged on both principal and earlier interest, the method is called A Simple interest B Fixed subsidy

Before approving a loan, banks mainly check which single factor to reduce default A Favourite shop name B Borrower’s hobbies

When a bank lends money, it is mainly performing which banking function A Exchange rate fixing B Currency printing C

Which best describes a bank’s main lending role in an economy A Issuing government orders B Printing currency notes C

Which statement best explains why the “face value” of currency is not the same as its production cost A Value

Which feature mainly makes fiat money different from commodity money like gold A Always metal based B Fixed intrinsic value

Why is a currency note called “legal tender” in a country A Gold makes it valid B Seller makes it

Why is a paper currency note acceptable even though its material value is low A Backed by gold B Backed