Join us on Instagram for latest agri updates@agroundet_click

here

ECON-242
OBJECTIVES

join us on telegram @diploma students

1. NABARD came into existence in the year 1982.

t s
2.Under single window system, cooperative marketing is under two tier structure.

n
3. The second spell of nationalization of banks was done in the year 1980.

e
4. RRBs came into existence in the year 2 October, 1975.

u d
5.PACS have been organized based on Raiffeissen model.

t
6.The process of repaying loan amount in series of installments is known as Amortization.

s
7. To overcome risk element in agri-business, farmers insure their crops.

a
8. The temporary transfer of assets or wealth from those who have to others who have not is

m
referred as credit.

o
9. The ability of the farmers to clear off the loan amount obtained for production purposes within

l
the stipulated time to the bank is called repayment capacity loan.

i p
10. AIRCSC was under the Chairmanship of A. D. Gorwala.

d
11. RBI is the chief monetary controlling authority in India.

12. The ability of the farmer to withstand the risks that arise due to financial loss is known as
risk bearing ability.

13. Production loans are also called as crop loans/ SAO loans/ ST loans.

14. Repayment period for short-term loans is 6-18 months.

15. In Andhra Pradesh state, co-operative marketing societies have two tier system.

16. Farm finance is an applied science of allocating financial resources to agricultural sector.

17. Credit is a device to provide the power of purchase of capital goods even for those who do
not possess capital.

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

18. NABARD was recommended by the CRAFICARD committee.

19. PACS have been organized based on Raiffeissen model.

20. Cooperation is self-help made effective by organization.

21. The scale of finance for crop loans should not exceed 50% of gross returns as per RBI

s
guidelines.

n t
22. CCIS was introduced by GIC in the year 1985.

e
23. The boom period of cooperation related to the years 1920-29.

d
24. AIRCRC was under the Chairmanship of B. Venkatappaiah.

t u
25. Tractor loans are cited an example for long-term loans.

s
26. Governement providing loans directly to the farmer-borrowers constitute Taccavi loans.

a
27. The apex bank under cooperative credit system disbursing ST and MT loans to the
farmer-borrowers is State Co-operative Bank.

m
28. "As per RBI guidelines, scale of finance should not exceed 50 % of gross returns.

l o
29. If character and capacity proved to be inadequate, the only aspect of risk bearing ability is

p
capital.

i
30. In purveying LT loans in India, Government adopted 2 tier system.

d
31.Risk in farm business is directly influenced by leverage ratio

32.The state level apex agency to look after marketing credit in Andhra Pradesh is MARKFED.

33. Reserve/Future repayment plan facilitates the farmer-borrower to repay the advanced
installments at times of good harvest in the farm business.

34. Ratio between A and B components in fixing scale of finance for wheat is 3:01

35. In Single Window System, production credit is provided through three tier system.

36. In purveying ST and MT loans in India, Government adopted three tier system.

37. Agricultural Finance deals with the study of financial aspects of agriculture at
aggregate/national level.

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

38. The word 'credit' is derived from credo, which means to trust

39. The temporary transfer of capital from a person who has to another person who do not
have, but with the promise that, the later will repay to the former after a specified date is called
credit.

s
40. The repayment period for MT loans is 15 months to 5 years.

n t
41. The repayment period for LT loans is 5-20 years or > 20 years.

e
42. Medium term loans and Long term loans together called as Term loans.

d
43. Term loans are otherwise called as Investment loans.

t u
44. Term loans/investment loans fall under partial-liquidating loans.

s
45. The return derived from the loan investment is not sufficient to clear off the entire loan in the
same accounting year, but cleared off in a series of installments is called partial liquidating

a
loan.

m
46. Partial liquidating loans are also called as non-liquidating loan

o
47. In I spell of nationalization of commercial banks, 14 banks were nationalized having deposits

l
more than Rs.50 crores.

i p
48. I spell of nationalization of commercial banks was done in the year 1969.

d
49. In II spell of nationalization of commercial banks, 6 banks were nationalizes having deposits
more than Rs. 200 crores.

50. Il spell of nationalization of commercial banks was done in the year 1980.

51. Total numbers of commercial banks nationalized so far in india are 20.

52. The nationalization of commercial banks in India to improve the flow of credit to agricultural
sector was done as per the recommendations of Indira Gandhi

53. Committee on Taccavi loans and Cooperative credit came into existence in 1962 under the
chairmanship of B.P. Patel

54. Committee on cooperative administration came into existence in 1964 under the
chairmanship of V.L Mehta

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

55. The cooperative credit societies in India were organizes based on Reiffeissen model.

56. The co-operative credit societies in India have three tier structures for disbursing ST and MT
loans.

57 The co-operative credit societies in India have two tier structures for disbursing LT loans.

s
58. The co-operative credit society functioning at village level in India for disbursing ST and MT

t
loans is PACS

n
59. The co-operative credit society functioning at district level in India for disbursing ST and MT

e
loans is DCCB

d
60. The co-operative credit society functioning at state level in india for disbursing ST and MT

u
loans is State Cooperative Bank.

t
61. The co-operative credit society functioning at state level in India for disbursing LT loans is

s
CLDB.

a
62. The co-operative credit society functioning at taluka level for disbursing LT loans is PLDB.

m
63. PACS supervises the end use of credit at the farmers' level.

o
64. Single window system was first started in Andhra Pradesh state in India

p l
65. The cooperative credit society functioning at village level in Andhra Pradesh for disbursing

i
ST, MT and LT loans is PACS

d
66. The cooperative credit society functioning at district level in Andhra Pradesh for disbursing
ST, MT and LT loans is DISCOBARD

67. The cooperative credit society functioning at state level in Andhra Pradesh for disbursing
ST, MT and LT loans is APCOBARD

68. The cooperative credit society functioning at state level in Andhra Pradesh for disbursing
marketing loans is MARKFED.

69. The cooperative credit society functioning at district level in Andhra Pradesh for disbursing
marketing loans is DCMS.

70. Single window system came into existence in Andhra Pradesh in the year 1967.

71. Single window system came into existence in Andhra Pradesh based on the
recommendations of Mohan Kanda.

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

72. RRBs banks combine the features of both cooperative and commercial banks.

73. Regional Rural Bank (RRB) is also called as Grameena Bank.

74. RRBs mainly focus on the credit needs of small and marginal farmers

s
75. RRBs came into existence to serve the credit needs of the farming community with more

t
dedication.

n
76. M. Narasimhan committee recommended the establishment of RRBs in the country.

e
77. The establishment of Farmers Service Societies was recommended by National

d
Commission on Agriculture under the chairmanship of T.A.Pai

tu
78. FSS came into existence in the year 1971.

s
79. FSS mainly focuses on the credit needs of weaker section.

a
80. RRB is sponsored by scheduled commercial banks.

m
81. FSS is sponsored by lead bank.

o
82. The jurisdiction of each RRB is 1 or 2 districts.

p l
83. Each RRB roughly covers about 20000 number populations.

i
84. The authorized share capital of RRB is Rs. 1 crore.

d
85. The issue capital of RRB is Rs. 25 lakhs.

86. The share capital of RRB is sponsored by the Central Governement,Sponsoring bank and
State Government in the ratio 50:35:15

87. The contributive share of sponsoring bank in the share capital of RRB is 35 %.

88. The contributive share of Central Government in the share capital of RRB is 50%.

89. The contributive share of State Government in the share capital of RRB is 35 %.

90. The number of Directors in the Board of Management of RRB is 8.

91. The economic feasibility tests of credit compromises of 3Rs, 5Cs and 7Ps

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

92. The 3 R's of credit include Returns. Repayment Capacity and Risk Bearing Ability.

93. While estimating, the repayment capacities of the farmer-borrower under risk conditions,
gross returns are deflated.

94. Capacity of the farmer-borrower is synonymous with two R of credit.

s
95. The concept of repayment plan will arise only for ST and MT loans

n t
96. The concept of repayment plan will arise only for Term loan/Investment loan/Partial
liquidating loan.

e
97. The concept of repayment plan will not arise only for ST/self-liquidating loan.

u d
98. The concept of repayment plan will arise only for term loans, because they are

t
partial-liquidating in nature.

s
99. The concept of repayment plan will not arise only for ST loans, because they are
self-liquidating in nature

a
100. Straight end repayment plan is otherwise called as Single/Lumpsum repaying plans.

m
101. The type of repayment plan in which the installment size gradually decreases and at the

o
end, the installment is bigger in size is Partial/

l
Balloon repayment plan.

i p
102. The type of repayment plan in which the interest is regularly paid and principal amount is
paid in lumpsum at the end is Partial/Balloon repayment plan.

d
103. Partial repayment plan is also called as Balloon repayment plan.

104. The repayment of entire loan amount in a series of installments is called as Amortization.

105. Amortization means killing by degrees.

106. In amortized decreasing repayment plan, the size of installments decreases

107. In amortized decreasing repayment plan, the interest component decreases

108. In amortized decreasing repayment plan, the principal component remains same

109. Amortized decreasing repayment plan is followed in case of machinery

110. In amortized even repayment plan, the size of installments remains same

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

111. In amortized even repayment plan, the interest component decreases.

112. In amortized even repayment plan, the principal component increases.

113. SFDA and MFAL are recommended by AIRCRC committee.

s
114. SFDA and MFAL came into existence in the year 1971.

n t
115. In SFDA, the extent of subsidy given to small farme in 2.5%.

e
116. In MFAL, the extent of subsidy given to marginal farmers and agricultural labourere is
33.30%.

u d
117. Service area approach was recommended by P.D. Ojha.

t
118. Service area approach came into existence in the year 1989.

s
119, Village adoption scheme came into existence in the year 1969.

a
120. Village adoption scheme was first conceived by SBI.

m
121. Deposit Insurance and Credit Guarantee Corporation of India (DICGC) came into existence

o
in the year 1978.

p l
122. V. M. Dandekar committee recommended the crop insurance in India.

i
123. Crop insurance scheme was first started in the year 1973.

d
124. Crop insurance scheme was first started in Gujarat

125. Crop insurance scheme was implemented based on individual approach.

126. Crop insurance scheme was first implemented by H4 variety of cotton.

127. World Bank is officially known as International Bank for Reconstruction and Rural
Development.

128. World Bank came into existence in the year 1945.

129. World Bank is located at Washington D.C.

130. IMF came into existence in the year 1945.

Join us on Telegram for Agri PDF@agrounder_click here

 Join us on Instagram for latest agri updates@agroundet_click
here

131. IFC came into existence in the year 1956.

132. IDA came into existence in the year 1960.

133. RBI came into existence in the year 1935.

134. NABARD came into existence in the year 1982.

t s
135. The central bank of India is RBI.

e n
u d
s t
a
o m
p l
d i

Join us on Telegram for Agri PDF@agrounder_click here