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Question (41)

QN0038161

Compare poor and rich urban households using the figures in the chapter. The difference between their informal-credit shares is:

(A) 27 percentage points
(B) 37 percentage points
(C) 47 percentage points
(D) 67 percentage points

Correct Answer: B

Explanation:

Poor households: 54%; rich households: 17%. Difference = 54 − 17 = 37 percentage points.

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Question (42)

QN0038162

Which conclusion is most directly supported by the urban credit data?

(A) Poor households use only formal credit
(B) Rich households depend more heavily on informal credit
(C) Poor households have a greater dependence on informal credit than rich households
(D) All households receive credit under identical terms

Correct Answer: C

Explanation:

The chapter reports 54% informal credit for poor urban households compared with 17% for rich households.

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Question (43)

QN0038163

A poor household borrows ₹1,00,000 from an informal lender at a high interest rate, while a rich household obtains the same amount from a formal lender at a lower rate. Which is the most likely economic consequence?

(A) The poor household necessarily retains more income
(B) The poor household may have to devote a larger share of earnings to repayment
(C) Both households must have identical repayment burdens
(D) The formal lender always charges more

Correct Answer: B

Explanation:

Higher borrowing costs leave less income with the borrower and may increase the debt burden.

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Question (44)

QN0038164

A borrower earns ₹25,000 per month. Due to a high-interest informal loan, ₹10,000 must be used each month for repayment. What percentage of monthly income goes towards repayment?

(A) 25%
(B) 30%
(C) 40%
(D) 50%

Correct Answer: C

Explanation:

₹10,000 ÷ ₹25,000 × 100 = 40%.

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Question (45)

QN0038165

A Self-Help Group has 20 members, each saving ₹50 per month. What is the group's total monthly saving?

(A) ₹500
(B) ₹750
(C) ₹1,000
(D) ₹1,500

Correct Answer: C

Explanation:

20 × ₹50 = ₹1,000.

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Question (46)

QN0038166

An SHG has 18 members. Each member saves ₹75 per month. How much will the group save in one year if the saving remains constant?

(A) ₹13,500
(B) ₹15,000
(C) ₹16,200
(D) ₹18,000

Correct Answer: C

Explanation:

Monthly saving = 18 × ₹75 = ₹1,350. Annual saving = ₹1,350 × 12 = ₹16,200.

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Question (47)

QN0038167

An SHG has 16 members, each saving ₹100 per month. After 12 months, what will be the total savings, assuming no withdrawals?

(A) ₹12,000
(B) ₹16,000
(C) ₹19,200
(D) ₹20,000

Correct Answer: C

Explanation:

16 × ₹100 × 12 = ₹19,200.

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Question (48)

QN0038168

A Self-Help Group has 15 members. Each saves ₹40 per month. If the group gives a ₹3,000 loan to one member from its accumulated savings after 6 months, how much money remains from the savings?

(A) ₹300
(B) ₹600
(C) ₹1,200
(D) ₹3,600

Correct Answer: B

Explanation:

Six-month savings = 15 × ₹40 × 6 = ₹3,600. Remaining = ₹3,600 − ₹3,000 = ₹600.

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Question (49)

QN0038169

Why can banks be willing to lend to SHGs even when individual members may not have collateral?

(A) SHGs never repay loans
(B) The group is responsible for repayment and members monitor one another
(C) SHGs receive loans without any conditions
(D) Banks charge no interest

Correct Answer: B

Explanation:

Group responsibility and peer monitoring reduce the bank's lending risk and help overcome the problem of lack of collateral.

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Question (50)

QN0038170

Consider two borrowers: Borrower A takes a reasonably priced formal loan, invests it in a small business and earns enough to repay it. Borrower B takes a high-interest informal loan, suffers a loss and repeatedly borrows to repay earlier debt. Which conclusion best reflects the chapter?

(A) Credit always makes borrowers better off
(B) Credit always makes borrowers worse off
(C) The impact of credit depends on the terms of credit and the risks involved
(D) Formal credit always causes debt traps

Correct Answer: C

Explanation:

The impact of credit depends on the risks involved, the terms of credit and the borrower's ability to repay.

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Question (41)

Compare poor and rich urban households using the figures in the chapter. The difference between their informal-credit shares is:

Explanation:

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Question (42)

Which conclusion is most directly supported by the urban credit data?

Explanation:

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Question (43)

A poor household borrows ₹1,00,000 from an informal lender at a high interest rate, while a rich household obtains the same amount from a formal lender at a lower rate. Which is the most likely economic consequence?

Explanation:

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Question (44)

A borrower earns ₹25,000 per month. Due to a high-interest informal loan, ₹10,000 must be used each month for repayment. What percentage of monthly income goes towards repayment?

Explanation:

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Question (45)

A Self-Help Group has 20 members, each saving ₹50 per month. What is the group's total monthly saving?

Explanation:

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Question (46)

An SHG has 18 members. Each member saves ₹75 per month. How much will the group save in one year if the saving remains constant?

Explanation:

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Question (47)

An SHG has 16 members, each saving ₹100 per month. After 12 months, what will be the total savings, assuming no withdrawals?

Explanation:

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Question (48)

A Self-Help Group has 15 members. Each saves ₹40 per month. If the group gives a ₹3,000 loan to one member from its accumulated savings after 6 months, how much money remains from the savings?

Explanation:

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Question (49)

Why can banks be willing to lend to SHGs even when individual members may not have collateral?

Explanation:

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Question (50)

Consider two borrowers: Borrower A takes a reasonably priced formal loan, invests it in a small business and earns enough to repay it. Borrower B takes a high-interest informal loan, suffers a loss and repeatedly borrows to repay earlier debt. Which conclusion best reflects the chapter?

Explanation:

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