Economics Practice Quiz 44

Q1.In rural areas, what is the main demand for credit primarily used for?

A. Buying consumer goods B. Crop production C. Education expenses D. Medical emergencies

Q2.What is the minimum time stretch mentioned between farmers buying inputs and selling their crop, during which crop loans are typically taken and repaid?

A. One to two weeks B. One to two months C. Three to four months D. Six to eight months

Q3.Repayment of crop loans is crucially dependent on what factor?

A. Government subsidies B. Income from farming C. Availability of new loans D. Market price fluctuations

Q4.What situation is commonly referred to as a 'debt-trap' in the context of credit, as exemplified by Swapna's case?

A. When credit helps improve earnings significantly. B. When a borrower receives a loan without collateral. C. When credit leaves the borrower worse off and recovery is painful. D. When a loan is repaid ahead of schedule.

Q5.Whether credit would be useful or not depends on which two main factors?

A. The borrower's age and educational qualification. B. The interest rate and the principal amount. C. The risks in the situation and whether there is some support in case of loss. D. The lender's reputation and the loan duration.

Q6.What was the primary reason for Swapna's inability to repay her loan?

A. High interest rates B. Failure of the crop C. Lack of collateral D. Diversion of funds

Q7.To repay her loan after the crop failure, what did Swapna have to do?

A. Take another loan from a different lender. B. Sell her livestock. C. Sell part of her land. D. Ask for a government waiver.

Q8.What was the principal loan amount taken by Megha from the bank to purchase a house?

A. Rs 2 lakhs B. Rs 5 lakhs C. Rs 10 lakhs D. Rs 12 lakhs

Q9.What was the annual interest rate on the house loan taken by Megha?

A. 10 per cent B. 12 per cent C. 15 per cent D. 20 per cent

Q10.For how many years was Megha's house loan to be repaid?

A. 5 years B. 8 years C. 10 years D. 15 years

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Economics Practice Quiz 44