Look at a 10 rupee note. What is written on top? Can you explain this statement?
a. Reserve Bank of India “ As the Reserve Bank of India issues the currency its name is written on the 10 Rupee note.
b. Guaranteed by the central Government “ Since the RBI issues the currency on behalf of the Central Government it stands guarantee.
c. Promise to pay the barer the sum of Ten Rupees “ As the currency is worth 10 Rupees the promise is made by the government.
d. The words 10 rupees is written in all the 15 national languages.
e. The signature of the Governor of RBI is also seen on the currency.
In situations with high risks, credit might create further problems for the borrower. Explain.
Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
(a) Why might banks be unwilling to lend to small farmers?
(b) What are the other sources from which the small farmers can borrow?
(c) Explain with an example how the terms of credit can be unfavourable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?