Q.Loans advanced by a credit co-operative that borrowers fail to repay on time, which lock up the society's funds, are known as:

The question describes loans that are not repaid on time and tie up the society's money — this has a specific name in co-operative finance.

Reserves and share capital are sources of funds, and a dividend is a return paid on capital — none of these describes an unpaid loan.

The term for loans advanced by a credit society that borrowers have failed to repay on time, locking up the society's funds, is overdues.

Option-by-option analysis:

• (a) Reserves — incorrect. Reserves are funds set aside out of surplus for the society's development, not unpaid loans.
• (b) Share capital — incorrect. Share capital is the money members contribute by subscribing shares; it is a source of funds, not an unrepaid loan.
• (c) Overdues — correct. When loans are not repaid on time, they become overdues; mounting overdues are a major cause of financial weakness because the society's money stays locked up and cannot be lent again or used to meet its obligations.
• (d) Dividend — incorrect. A dividend is a (limited) return paid on member capital, not a loan.