Explanation: In barter both parties must want what the other offers. Money acts as a commonly accepted medium of exchange, allowing sellers to receive money and buyers to use it to purchase other goods, removing the need for a direct swap.

Explanation: Money facilitates exchange, measures value and stores value. Manufacturing goods is an economic activity, not a function of money.

Explanation: Liquidity is the ability to quickly use an asset for transactions. Money is the most liquid asset because it can be used directly for buying goods and services.

Explanation: Divisibility allows money to be broken into smaller units for transactions of varying values (e.g., paise), making trade easier than using indivisible barter goods.

Explanation: Inflation is the general rise in prices, reducing the real value or purchasing power of money over time.

Explanation: Demand deposits are withdrawable on demand, such as savings/current accounts that can be used via cheques or electronic transfers.

Explanation: UPI (Unified Payments Interface) enables instant bank-to-bank transfers via mobile apps. IMPS is also instant but UPI is the most widely used app-based method in India.

Explanation: Plastic money commonly refers to cards like debit and credit cards used for cashless payments; digital wallets are electronic forms but not "plastic".

Explanation: When banks lend, the borrowed money is deposited back into the banking system, creating new deposits and expanding the money supply via the money multiplier effect.

Explanation: A cheque instructs the bank to pay from the drawer's demand deposit; it is a non-cash payment instrument linked to bank deposits.

Explanation: Interest compensates banks for the cost of mobilising funds (deposits) and the risk of borrower default, plus operational costs and desired profit margin.

Explanation: Crop loans are short-term credit meant to finance inputs for a cropping season, with repayment typically after harvest.

Explanation: Lending converts deposits into loans which get spent and redeposited, creating new deposits and expanding the money supply through the multiplier process.

Explanation: Know Your Customer (KYC) documents like ID and address proof are required to assess identity and prevent fraud in lending and banking services.

Explanation: Secured lending involves collateral (like gold) reducing lender risk, often resulting in lower interest rates compared to unsecured loans.

Explanation: Productive credit used for income-generating activities increases earnings and repayment ability, unlike consumption loans.

Explanation: Repeated borrowing to service previous debts indicates a debt trap, often caused by high-interest informal loans or poor financial planning.

Explanation: Subsidised credit lowers borrowing costs for productive sectors like agriculture, encouraging investments that boost output and income.

Explanation: Formal banks require documentation to assess creditworthiness; workers without ID, income proof or collateral are less likely to secure bank loans.

Explanation: Formal credit usually has lower rates and transparent terms; combined with budgeting and planning, borrowers can avoid unsustainable debt cycles.

Explanation: Monthly installment depends on the interest charged and duration of loan — higher interest or shorter tenure increases the EMI.

Explanation: Collateral gives lenders security; in default, the lender can sell the asset to recover the loaned amount.

Explanation: Spreading repayment over a longer period reduces each instalment but may increase the total interest paid over the life of the loan.

Explanation: Credit history helps banks assess the likelihood of repayment; good records often lead to easier credit access and lower rates.

Explanation: Principal is the loan amount borrowed; interest is the charge for using that money.

Explanation: RRBs were created to provide credit and banking services to rural and agricultural sectors, improving reach and accessibility.

Explanation: SHG stands for Self Help Group — small voluntary associations of people who save and lend among themselves and link with banks.

Explanation: Formal lenders operate under regulations, typically offering lower interest rates and legal protections compared to informal lenders who may charge very high rates.

Explanation: NBFCs provide credit, hire-purchase, and leasing services but cannot accept demand deposits like banks.

Explanation: SHGs encourage savings among members, create a common fund for internal lending, and improve access to bank loans when linked to formal institutions.