Page 83 - Understanding Economics for Class 10

8. Miss “S” approached a bank nearby to avail loan for her own business, as well as a Self-
help group which is operating in her village, the bank rejected her loan application whereas
the Self-help group accepted to support her by providing the loan.
Which one of the following documents is required by the bank, but not required by the
Goyal Brothers Prakashan
self-help group to approve Miss "S's" loan application for her business?
(a) Application for loans
(b) Arrangement Letter
(c) Document on Collateral
(d) Demand promissory note and take delivery letter
Ans. (c) Document on Collateral

9. Match the following:
Column I Column II
1. It supervises the functioning of formal sources of loans (i) Collateral
2. System of exchanging goods for goods. (ii) Credit
3. An asset that the borrower owns and uses as a guarantee (iii) RBI
until the loan is repaid to the lender.
4. It refers to an agreement between lender and borrower (iv) Barter System
(a) 1. – (i), 2. – (ii), 3. – (iii), 4. – (iv) (b) 1. – (iii), 2. – (iv), 3. – (i), 4. – (ii)
(c) 1. – (iii), 2. – (iv), 3. – (ii), 4. – (i) (d) 1. – (ii), 2. – (iii), 3. – (iv), 4. – (i)
Ans. (b) 1. – (iii), 2. – (iv), 3. – (i), 4. – (ii)

10. Match the following:
Column I Column II
1. Cooperative Societies (i) A larger part of earnings of the borrower is used
to repay loan.
2. Credit money (ii) Small scale organization formed by people
themselves.
3. Cash reserve ratio (iii) Future monetary claim against an individual that
can be used to buy goods and services.
4. Higher cost of borrowings. (iv) A certain minimum amount of deposits that the
commercial banks have to hold as reserves with
the Central Bank.
(a) 1. – (i), 2. – (iii), 3. – (ii), 4. – (iv) (b) 1. – (i), 2. – (iv), 3. – (ii), 4. – (iii)
(c) 1. – (ii), 2. – (iii), 3. – (iv), 4. – (i) (d) 1. – (iii), 2. – (ii), 3. – (i), 4. – (iv)
Ans. (c) 1. – (ii), 2. – (iii), 3. – (iv), 4. – (i)

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ii. assertion-reasoning Based Questions
In the question given below, there are two statements marked as Assertion (A) and Reason
(R). Read the statements and choose the correct option.
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
E-74 Economics Class X