All In One - Economics

Book: All In One - Economics

Chapter: 3. Money and Credit

Subject: Social Science - Class 10th

Q. No. 8 of Self Assessment

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8

Why do bank demand collateral while issuing a loan?

Collateral is an asset that borrower owns. The collateral can be anything that has monetary value in it. The bank demands the collateral for the guarantee against their repayment for the credit. Collateral can be land, building, gold, vehicle, etc.


Chapter Exercises

Check Point 01
Check Point 02
Self Assessment

More Exercise Questions

1

What are the difficulties of the Barter system?
2

State one advantage of SHGs.
3

What are the formal sources of credit?
4

Which institution in India does authorize, money as a medium of exchange?
5

Mention the sources of informal credit.
6

How do currency notes act as a medium of exchange?
7

What are the different types of bank deposits?
8

Why do bank demand collateral while issuing a loan?
9

Write a short note on terms of credit.
10

Explain loans from cooperatives.
11

‘The Rupee is widely accepted as a medium of exchange’. Explain.
12

From where can small farmers get cheap loans?
13

Why is it important to have control over the formal sector loans by the Government of India?
14

Distinguish Between modern and traditional forms of money.
15

“Cheap and affordable credit is essential for poor households both in rural and urban areas’’. In the light of this statement explain the social and economic values attached to it.
16

Explain the role of Self Help Groups in empowering women.
17

Modern banking system plays an important role in the country's economic development. Briefly explain.
18

How does a Self Help Group function?
19

How can rural poor be encouraged to take loans from the formal sectors of credit? Explain.
20

Describe four major sources of credit for households in India.

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