Long answer questions 16. What is double coincidence of wants? Explain.

17. Name the modern forms of money. Explain its features.

18. Is rupee India’s legal currency? Explain.

19. Write a note on deposits with banks.

20. What are demand deposits? Which interesting facility do they offer?

21. Explain loan activities of banks.

22. What is the main source of income to a bank?

23. Explain two situations where credit plays a positive role and a negative role.

24. What is a collateral?

25. What are co-operatives?

26. How does RBI supervise the functioning of banks in giving out loans?

27. Differentiate between formal and informal sources of credit.

28. Explain the importance of credit for economic development.

29. What are self help groups? What is their objective and importance?

30. What are the reasons that banks might not be willing to lend to certain borrowers?

31. Write a short note on sources of credit for rural households in India.

32. “Rich households avail cheap credit from formal lenders where as poor households

have to pay a large amount for borrowing.” Explain using relevant data.

33. Explain the need for expanding formal sector credit especially with respect to poor

and rural households.