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Question (21)

QN0038141

Shyamal's earlier moneylender charged 5% per month. If the rate is simply annualised, what is the annual rate?

(A) 5%
(B) 12%
(C) 50%
(D) 60%

Correct Answer: D

Explanation:

5% × 12 months = 60% per annum.

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Question (22)

QN0038142

Shyamal later borrowed from a trader at 3% per month. Under simple annualisation, what is the annual rate?

(A) 9%
(B) 18%
(C) 36%
(D) 60%

Correct Answer: C

Explanation:

3% × 12 = 36% per annum.

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Question (23)

QN0038143

Arun obtains a bank loan at 8.5% per annum. If he borrows ₹1,00,000 for one year under simple interest, what interest would be payable?

(A) ₹850
(B) ₹8,500
(C) ₹18,500
(D) ₹85,000

Correct Answer: B

Explanation:

8.5% of ₹1,00,000 = ₹8,500.

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Question (24)

QN0038144

Arun's annual interest rate is 8.5%, while Shyamal's trader charges 3% per month. Using simple annualisation, how many percentage points higher is Shyamal's rate?

(A) 17.5 percentage points
(B) 27.5 percentage points
(C) 36.0 percentage points
(D) 44.5 percentage points

Correct Answer: B

Explanation:

Shyamal's annualised rate = 36%. Difference = 36 − 8.5 = 27.5 percentage points.

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Question (25)

QN0038145

Rama borrows ₹5,000 from her employer at 5% per month. Ignoring compounding, what interest accumulates in 4 months?

(A) ₹250
(B) ₹500
(C) ₹1,000
(D) ₹1,250

Correct Answer: C

Explanation:

Monthly interest = 5% of ₹5,000 = ₹250. For 4 months = ₹1,000.

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Question (26)

QN0038146

Rama repeatedly takes fresh loans before repaying previous loans. Which outcome is most consistent with the chapter?

(A) Her debt is likely to decline automatically
(B) Her debt may increase over time
(C) Her interest rate becomes zero
(D) Her loan becomes a demand deposit

Correct Answer: B

Explanation:

Repeated borrowing at high interest can increase debt and lead towards a debt trap.

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Question (27)

QN0038147

A farmer has two credit choices for a ₹1,00,000 loan: Formal lender: 9% per annum; Informal lender: 3% per month. Using simple annualisation, how much greater is the annual interest from the informal lender?

(A) ₹18,000
(B) ₹27,000
(C) ₹36,000
(D) ₹45,000

Correct Answer: B

Explanation:

Informal rate = 3% × 12 = 36%. Difference = 36% − 9% = 27%. On ₹1,00,000, the difference is ₹27,000.

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Question (28)

QN0038148

A farmer earns ₹1,50,000 from cultivation and pays ₹45,000 as loan repayment during the year. What percentage of the farming income goes towards repayment?

(A) 15%
(B) 20%
(C) 30%
(D) 45%

Correct Answer: C

Explanation:

₹45,000 ÷ ₹1,50,000 × 100 = 30%.

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Question (29)

QN0038149

Which source is classified as a formal source of credit in the chapter?

(A) Moneylender
(B) Trader
(C) Bank
(D) Employer

Correct Answer: C

Explanation:

Banks and cooperatives are formal sources of credit.

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Question (30)

QN0038150

In rural India in 2019, commercial banks accounted for 51% of the sources of credit shown in the chapter's graph. If a hypothetical sample represents ₹10 crore of total credit, what amount corresponds to commercial banks?

(A) ₹3.1 crore
(B) ₹4.9 crore
(C) ₹5.1 crore
(D) ₹6.1 crore

Correct Answer: C

Explanation:

51% of ₹10 crore = ₹5.1 crore.

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Question (21)

Shyamal's earlier moneylender charged 5% per month. If the rate is simply annualised, what is the annual rate?

Explanation:

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Question (22)

Shyamal later borrowed from a trader at 3% per month. Under simple annualisation, what is the annual rate?

Explanation:

Link:

Question (23)

Arun obtains a bank loan at 8.5% per annum. If he borrows ₹1,00,000 for one year under simple interest, what interest would be payable?

Explanation:

Link:

Question (24)

Arun's annual interest rate is 8.5%, while Shyamal's trader charges 3% per month. Using simple annualisation, how many percentage points higher is Shyamal's rate?

Explanation:

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Question (25)

Rama borrows ₹5,000 from her employer at 5% per month. Ignoring compounding, what interest accumulates in 4 months?

Explanation:

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Question (26)

Rama repeatedly takes fresh loans before repaying previous loans. Which outcome is most consistent with the chapter?

Explanation:

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Question (27)

A farmer has two credit choices for a ₹1,00,000 loan: Formal lender: 9% per annum; Informal lender: 3% per month. Using simple annualisation, how much greater is the annual interest from the informal lender?

Explanation:

Link:

Question (28)

A farmer earns ₹1,50,000 from cultivation and pays ₹45,000 as loan repayment during the year. What percentage of the farming income goes towards repayment?

Explanation:

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Question (29)

Which source is classified as a formal source of credit in the chapter?

Explanation:

Link:

Question (30)

In rural India in 2019, commercial banks accounted for 51% of the sources of credit shown in the chapter's graph. If a hypothetical sample represents ₹10 crore of total credit, what amount corresponds to commercial banks?

Explanation:

Link:

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