Economics Practice Quiz 45

Q1.What did the bank retain as collateral for Megha's house loan?

A. Her employment records B. Her salary documents C. Papers of the new house D. Her personal savings account

Q2.Which of the following elements together comprise what is known as the 'terms of credit' in a loan arrangement?

A. Loan amount, repayment duration, and borrower's income B. Interest rate, collateral, documentation requirement, and mode of repayment C. Bank's profit margin, government regulations, and market conditions D. Lender's reputation, borrower's credit score, and loan purpose

Q3.The terms of credit may vary depending on which of the following factors?

A. The current inflation rate and economic growth B. The nature of the lender and the borrower C. The global financial market trends D. The government's fiscal policy and taxation

Q4.How was Megha's house loan specifically structured for repayment over 10 years?

A. In annual lump sums B. In quarterly payments C. In monthly instalments D. In bi-annual instalments

Q5.What is the landholding size of Shyamal, a small farmer in Sonpur?

A. 1.5 acres B. 7 acres C. 5 acres D. 15 acres

Q6.Till a few years before 2019, at what interest rate per month did Shyamal borrow money from the village moneylender?

A. Three per cent B. Five per cent C. Eight per cent D. Ten per cent

Q7.For the last few years leading up to 2019, from whom has Shyamal been borrowing money for cultivation and at what interest rate per month?

A. Village moneylender at five per cent B. Agricultural trader at three per cent C. Bank at 8.5 per cent D. Landowner at five per cent

Q8.Besides the interest charge on the loan, what additional condition does the agricultural trader impose on farmers like Shyamal?

A. To provide collateral in the form of land B. To sell the crop exclusively to him C. To repay the loan before the harvest D. To work as a labourer on his fields

Q9.How does the agricultural trader, who lends to farmers like Shyamal, make a profit beyond the interest charge?

A. By charging a high processing fee on loans B. By selling farm inputs at inflated prices C. By buying crops at low prices after harvest and selling them later when prices rise D. By making farmers work on his land without wages

Q10.What is the landholding size of Arun, a farmer in Sonpur who received a bank loan for cultivation?

A. 1.5 acres B. 3 acres C. 7 acres D. 10 acres

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Economics Practice Quiz 45