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This has led to a deeper integration of national economies into one conglomerate whole. Question 8: How does foreign trade lead to the integration of markets across countries? Explain with an example other than those given here. Question 9: Globalisation will continue in the future.
Can you imagine what the world would be like twenty years from now? Give reasons for your answer. Answer: Globalisation will continue in the future. Twenty years from now, the world will be more globally connected and integrated into one international economy, if this process continues on a fair and equitable basis. Trade and capital flows will increase alongside the mobility of labour. This will occur because liberalisation will get augmented and MNCs will converge with other companies producing the same goods.
The other is telling, globalisation is helping India develop. How would you respond to these organisations? Answer: Both the arguments have some truth as mentioned below : Globalisation has helped India develop as mentioned below :.
Question Fill in the blanks. Indian buyers have a greater choice of goods than they did two decades back. Markets in India are selling goods produced in many other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. Answer: Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation.
This means there is increasing trade with other countries. MNCs are investing in India because of cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers. Question Choose the most appropriate option. Multiple Choice Questions.
Cargill foods is the largest producer Ncert Solutions Of Class 10th English Chapter Amanda 00 of which of the following in India? Which one of the following organisations lays stress on liberalisation of foreign trade and foreign investment? Which one of the following Indian industries has been hit hard by globalisation?
Which one of the following type of countries has been more benefited from globalisation? What is the process of rapid integration or interconnection between countries called? Which one of the following is an example of a trade barrier? Globalisation does NOT involve which one of the following? Which of the following is not a feature of a Multi-National Company? Liberalisation involves which one of the following? The past two decades of globalisation has seen rapid movements in a goods, services and people between countries.
The most common route for investments by MNCs in countries around the world is to a set up new factories. Globalisation has led to an improvement in living conditions a of all the people b of people in developed countries c of workers in the developing countries d none of the above. Globalisation, by connecting countries, shall result in a lesser competition among producers. Company that owns or controls production in more than one nation a Foreign companies b Government companies c Multinational companies d Private companies.
Benefit to the local company of joint production with MNCs is i Money from MNCs for additional investments ii Moral and Social support iii Latest technology for production iv All of them a i and ii b ii and iii c iii and iv d i and iii.
Cargill is now the largest producer of edible oil in India, with a capacity to make ���� pouches daily. Examples of industries where production is carried out by a large number of small producers around the world a Garments b Footwear c Sport items d All of them. Answer: The role of credit for development is very significant as mentioned below:. Question 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? Answer: Manav will decide whether to borrow from the bank or the moneylender on the basis of the following terms of credit:. Depending on these factors and of course, easier terms of repayment, Manav has to decide whether he has to borrow from the bank or the moneylender. Question In India, about 80 percent of farmers are small farmers, who need cultivation. Answer: a The banks might be unwilling to lend to small farmers because the farmers usually take crop loan at the beginning of the season and repay the loan after harvest.
Repayment of loan is dependent on the income from farming. And in case of crop failure, repayment becomes impossible. In such cases, the recovery of loan from the small farmers becomes very difficult. The small farmers have to sell part of the land to repay the loan that is why banks do not want to give loans to small farmers.
Thus in order to repay, the small farmers sell a part of the land. This leads to worsening of their condition. Sometimes, small farmers give collateral or security against loans. The collateral generally consists of land, building, vehicles, livestock. In case of nonpayment of loan, the lender may sell the collateral to recover loan.
Under above conditions, the terms of credit become unfavourable for the small farmers. Members of a cooperative society, pool their resources for cooperation in certain areas. The cooperative accepts deposits from its members. With these deposits as collateral, the cooperative obtains loan from the bank. These funds are used to provide loans to members. Question Choose the most appropriate answer. Answer: i b ii c. Multiple Choice Questions. Which one of the following statements is most appropriate regarding a transaction made in money?
Which one of the following is the new way of providing loans to the rural poor? Which among the following authorities issues currency notes? Banks provide a higher rate of interest on which one of the following accounts? Which one of the following is the main source of credit for rich urban households in India? Which one of the following is an essential feature of the barter system? Which one of the following terms is not included against loans? What is main source of income for banks? In which one of the following systems exchange of goods is done without use of money?
Which of the following has an essential feature of double coincidence? What percent of their deposits do bank hold as cash? Which of the following is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender? How many members a typical Self-Help Group Should have? About what percentage of their deposits is kept as cash by the banks in India? Why do banks keep a small proportion of the deposits as cash with themselves?
The currency notes on behalf of the Central Government are issued by whom? Which one of the following is not a feature of money? Professor Muhammad Yunus is the founder of which one of the following banks?
Which one of the following is a modern form of currency? The Informal source of credit does not include which one of the following? Additional Questions Anything which is generally accepted by the people in exchange of goods and services a Money b Barter c Credit d Loans. Money acts as an intermediate in the exchange process. Which function of money is highlighted here? Modern forms of money include i Gold ii Paper Notes iii Coins iv Silver a i and iii b ii and iv c iii and iv d ii and iii.
Mpney is accepted as a medium of exchange because the currency is authorised by a Private sector b Public sector c Government d People. Deposits in the bank accounts can be withdrawn on demand, therefore these deposits are called a Returnable deposits b Acceptable Deposits c Demand deposits d None of the above. Banks use the major portion of the deposits to a Keep as a reserve so that people may withdraw b Meet their routine expenses c Extend loans d Meet renovation of the Class 10th English Ncert Solutions First Flight Github bank.
An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. Salim, the shoe manufacturer, to meet expenses obtains loans from two sources.
Swapna is unable to repay the moneylender and she is caught in debt. She has to sell a part of the land to pay off the debt.
Whether credit would be useful or not, depends on i Whether there is some support in case of loss ii Action of competitors iii Market response iv Risks in the situation a i and iii b ii and iv c ii and iii d i and iv. Terms of credit does not include a Interest rate b Collateral c Cheque d Mode of repayment.
Krishak cooperative functioning in a village near Sonpur has �����. Formal sector loans include loans from i Banks ii Moneylenders iii Cooperatives iv Traders a i and iii b ii and iv c ii and iii d i and iv. Organisation which supervises the credit activities of lenders in the informal sector.
Compared to the formal lenders, most of the informal lenders charge a much �����.. Formal sector meets only about ����� of the total credit needs of the rural people in a one third b one fourth c half d whole. It is important that the formal credit is distributed more equally so that a Poor can benefit from cheaper loans.
After a year or two, if the SHG is regular in savings, it becomes eligible for availing loan from a Cooperative societies b Moneylenders c Bank d Traders. Answer: High-risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment.
There is a minimum stretch of three of four months between the time when farmers buy these inputs and when they sell the crop.
Farmers generally take crop loans at the beginning of the season and repay the loan after harvest. Repayment of the loan is crucially dependent on the income from farming. If a crop fails due to shortage of rain or for any other reason, a small farmer has to sell a part of the land to repay the loan.
Failure of crops create further problems for the borrowers. Credit does not improve his earnings but leaves him worse off than before. Credit in high risks situations pushes the borrower into a debt trap, a situation from which recovery is very painful.
Answer: People hold money as deposits with banks which pay an interest rate on them. People do not withdraw their cash daily. The banks, therefore, hold only 15 percent of their deposits as cash with themselves in order to pay the depositors who might come to withdraw money from the bank on any given day.
Since, on any particular day, only some of its many depositors come to withdraw cash, the bank is able to manage with this cash. They use a major portion of the deposits to extend loans to those who need money.
The banks make use of deposits to meet the loan requirements of the people. Thus, in this way, the banks mediate between those who have surplus money and those who need money.
Banks charge a higher interest rate on loans than what they offer on deposits. The difference between the two is the main source of income of the banks.
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