Economics Practice Quiz 43

Q1.Which of the following was one of the sources from which Salim obtained a loan to meet his expenses?

A. A commercial bank B. A government loan scheme C. The leather supplier D. A family member

Q2.In Salim's situation, credit played a vital and positive role by helping him achieve which of the following?

A. Reducing his overall debt burden. B. Avoiding any future financial obligations. C. Meeting working capital needs, completing production on time, and increasing his earnings. D. Selling his business at a higher profit.

Q3.What was Swapna's profession?

A. Shoe manufacturer B. Large trader C. Leather supplier D. Small farmer

Q4.How many acres of land did Swapna cultivate groundnut on?

A. One acre B. Two acres C. Three acres D. Four acres

Q5.What was the primary reason for Swapna's crop failure midway through the season?

A. Lack of sufficient rainfall. B. Poor quality of seeds used. C. The crop was hit by pests. D. A sudden change in market prices.

Q6.What was the ultimate consequence for Swapna due to her inability to repay the loan and growing debt?

A. She received a government relief package. B. She was able to expand her farming operations. C. She had to sell a part of her land. D. She found a new, more lenient moneylender.

Q7.From whom did Swapna take a loan to meet the expenses of cultivation?

A. A commercial bank B. A cooperative society C. The moneylender D. A government agricultural department

Q8.According to the loan agreement terms mentioned, what must a borrower pay to the lender along with the principal amount?

A. Collateral B. Interest rate C. Security deposit D. Processing fee

Q9.What is defined as an asset that the borrower owns and uses as a guarantee to a lender until the loan is repaid?

A. Principal amount B. Interest rate C. Collateral D. Debt-trap

Q10.If a borrower fails to repay a loan, what right does the lender have regarding the collateral?

A. To extend the loan period indefinitely B. To demand additional interest C. To sell the asset or collateral to obtain payment D. To forgive the loan entirely

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Economics Practice Quiz 43