MCQ Questions for Class 10 Economics: Ch 3 Money and Credit
1. Credit or loan refers to an agreement between:
(a) lender and borrower
(b) consumer and producer
(c) government and tax payer
(d) all the above
► (a) lender and borrower
2. Money
(a) eliminates double-coincidence of wants
(b) acts as a common measure of value
(c) acts as a standard of deferred payments
(d) all the above
► (d) all the above
3. Terms of credit are with respect to:
(a) interest rate
(b) collateral
(b) collateral
(c) documentation
(d) all the above
(d) all the above
► (d) all the above
4. System of exchanging goods for goods is called:
(a) monetary system
(b) credit system
(c) barter system
(d) exchange system
► (c) barter system
5. At present which form of money is increasingly used apart from paper money?
(a) Commodity money
(b) Metallic money
(c) Plastic money
(d) All the above
► (c) Plastic money
6. The part of the total deposits which a bank keeps with itself in cash is
(a) zero
(b) a small proportion
(c) a big proportion
(d) 100 percent
► (b) a small proportion
7. What are the modern forms of money?
(a) Currency
(b) Plastic money
(c) Demand deposits
(d) All the above
(d) All the above
► (d) All the above
8. Currency is issued in India by :
(a) commercial banks
(b) regional rural banks
(c) nationalised banks
(d) Reserve Bank of India
► (d) Reserve Bank of India
9. Terms of credit are with respect to :
(a) interest rate
(b) collateral
(b) collateral
(c) documentation
(d) all the above
(d) all the above
► (d) all the above
10. At present which form of money is increasingly used apart from paper money?
(a) Commodity money
(b) Metallic money
(c) Plastic money
(d) All the above
► (c) Plastic money
11. Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka
► (a) Andhra Pradesh
12. Who supervises the credit activities of lenders in the informal sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None
► (d) None
13. Which of the following is not a source of rural credit?
(a) Regional rural banks
(b) Moneylenders
(c) Traders
(d) Government
► (d) Government
14. Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka
► (a) Andhra Pradesh
15. Regional Rural Banks were set up in ________.
(a) 1969
(b) 1979
(c) 1989
(d) 1999
► (a) 1969
16. Rate of interest charged by moneylenders as compared to that charged by banks is:
(a) lower
(b) same
(c) slightly higher
(d) much higher
► (d) much higher
17. Who supervises the functioning of formal sources of loans?
(a) Reserve Bank of India
(b) Central government
(c) State government
(d) None
► (a) Reserve Bank of India
18. Formal sources of credit include
(a) banks
(b) moneylenders
(c) employers
(d) all the above
► (a) banks
19. Which of the following is a major reason which prevents the poor from getting bank loans?
(a) Absence of collateral (security)
(b) Non-repayment of loans
(c) Higher interest rates
(d) Documentation
► (a) Absence of collateral (security)
20. Which of the following is not a modern form of money?
(a) Paper notes
(b) Demand deposits
(c) Silver coins
(d) None of the above
► (c) Silver coins
21. Which one of the following authorises money as a medium of exchange?
(a) Reserve Bank of India
(b) Self Help Groups
(c) The Central Government
(d) The President of India.
► (a) Reserve Bank of India
22. Who helps the borrowers to overcome the problem of lack of collateral?
(a) Self-help group (SHG)
(b) State government
(c) Employers
(d) Moneylenders
► (a) Self-help group (SHG)
23. Which of the following is not an advantage of self-help group?
(a) Grant of timely loans
(b) Reasonable interests
(c) A platform to discuss various issues
(d) Does not help women to become self-reliant.
► (d) Does not help women to become self-reliant.
24. Identify the formal source of credit:
(a) Cooperative societies
(b) Moneylenders
(c) Traders
(d) Landlords
► (a) Cooperative societies
25. Which of the following is not true regarding the in convenience of Barter Exchange?
(a) Lack of double coincidence of want
(b) Absence of divisibility
(c) Difficulty in storing wealth
(d) Availability of money as a medium of exchange.
► (d) Availability of money as a medium of exchange.
26. Which one of the following is not a modern form of money?
(a) Demand Deposits
(b) Paper currency
(c) Coins
(d) Precious metals
► (d) Precious metals
27. Formal Sources of credit include:
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
► (b) co-operatives
28. Which one of the following is NOT an informal sector loans for poor rural household in India?
(a) Commercial Banks
(b) Moneylenders
(c) Traders
(d) Landlords
► (a) Commercial Banks
29. In a SHG most of the decisions regarding loan activities are taken by
(a) Banks
(b) Member
(c) Non-government organizations
(d) Cooperatives
► (b) Member
30. Formal Sources of credit include :
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
► (b) co-operatives
31. Banks do not give loans:
(a) to small farmers
(b) to marginal farmers
(c) to industries
(d) without proper collateral and documents
► (d) without proper collateral and documents
32. Which one of the following agencies issues currency notes on behalf of the government of India?
(a) Ministry of Finance
(b) Reserve Bank of India
(c) State Bank of India
(d) World Bank
► (c) State Bank of India
33. Which one of the following is a major reason that prevents the poor from getting loans from the banks?
(a) Lack of capital
(b) Not affordable due to high rate of interest
(c) Absence of collateral security
(d) Absence of mediators
► (c) Absence of collateral security
34. Which one of the following is not a formal source of credit?
(a) Commercial Banks
(b) State Bank of India
(c) Employers
(d) Co-operatives
► (c) Employers
35. Which one of the following is the important characteristic of modern form of currency?
(a) It is made from precious metal
(b) It is made from thing of everyday use
(c) It is authorised by the commercial banks
(d) It is authorised by the Government of the country
► (d) It is authorised by the Government of the country
36. Which one of the following is the main source of credit for the rich households?
(a) Informal
(b) Formal
(c) Both formal and informal
(d) Neither Formal nor informal
► (b) Formal
37. Which is not the main source of credit from the following for rural households in India?
(a) Traders
(b) Relatives and friends
(c) Commercial Banks
(d) Moneylanders
► (a) Traders
38. Which among these is an essential feature of barter system?
(a) Money can easily exchange any commodity
(b) It is based on double co-incidence of wants
(c) It is generally accepted as a medium of exchange of goods with money
(d) It acts as a measure and store of value
► (b) It is based on double co-incidence of wants
39. Which one of the following is not included in the terms of credit?
(a) Rate of Interest
(b) Mode of payment
(c) Rate of saving
(d) Collateral
► (c) Rate of saving
40. Which households take more loans from the formal sector?
(a) Poor households and rich household.
(b) Well off households and households with few assets.
(c) Poor households and well off households
(d) Well off households and rich households.
► (d) Well off households and rich households.
41. When both parties agree to sell and buy each others commodities it is known as:
(a) measure of value
(b) double coincidence of wants
(c) store of value
(d) credit
► (b) double coincidence of wants
42. What portion of deposits are kept by the banks for their day to day transaction?
(a) 10%
(b) 15%
(c) 20%
(d) 25%
► (b) 15%
43. Banks use the major portion of the deposit to:
(a) Keep reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of the bank
► (c) Extend loans
44. Which is not the main source of credit from the following for rural households in India?
(a) Traders
(b) Relatives and friends
(c) Commercial Banks
(d) Moneylanders
► (a) Traders
(a) Commodity money
(b) Metallic money
(c) Plastic money
(d) All the above
► (c) Plastic money
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka
► (a) Andhra Pradesh
12. Who supervises the credit activities of lenders in the informal sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None
► (d) None
13. Which of the following is not a source of rural credit?
(a) Regional rural banks
(b) Moneylenders
(c) Traders
(d) Government
► (d) Government
14. Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka
► (a) Andhra Pradesh
(a) 1969
(b) 1979
(c) 1989
(d) 1999
► (a) 1969
16. Rate of interest charged by moneylenders as compared to that charged by banks is:
(a) lower
(b) same
(c) slightly higher
(d) much higher
► (d) much higher
17. Who supervises the functioning of formal sources of loans?
(a) Reserve Bank of India
(b) Central government
(c) State government
(d) None
► (a) Reserve Bank of India
18. Formal sources of credit include
(a) banks
(b) moneylenders
(c) employers
(d) all the above
► (a) banks
19. Which of the following is a major reason which prevents the poor from getting bank loans?
(a) Absence of collateral (security)
(b) Non-repayment of loans
(c) Higher interest rates
(d) Documentation
► (a) Absence of collateral (security)
20. Which of the following is not a modern form of money?
(a) Paper notes
(b) Demand deposits
(c) Silver coins
(d) None of the above
► (c) Silver coins
21. Which one of the following authorises money as a medium of exchange?
(a) Reserve Bank of India
(b) Self Help Groups
(c) The Central Government
(d) The President of India.
► (a) Reserve Bank of India
22. Who helps the borrowers to overcome the problem of lack of collateral?
(a) Self-help group (SHG)
(b) State government
(c) Employers
(d) Moneylenders
► (a) Self-help group (SHG)
23. Which of the following is not an advantage of self-help group?
(a) Grant of timely loans
(b) Reasonable interests
(c) A platform to discuss various issues
(d) Does not help women to become self-reliant.
► (d) Does not help women to become self-reliant.
24. Identify the formal source of credit:
(a) Cooperative societies
(b) Moneylenders
(c) Traders
(d) Landlords
► (a) Cooperative societies
25. Which of the following is not true regarding the in convenience of Barter Exchange?
(a) Lack of double coincidence of want
(b) Absence of divisibility
(c) Difficulty in storing wealth
(d) Availability of money as a medium of exchange.
► (d) Availability of money as a medium of exchange.
26. Which one of the following is not a modern form of money?
(a) Demand Deposits
(b) Paper currency
(c) Coins
(d) Precious metals
► (d) Precious metals
27. Formal Sources of credit include:
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
► (b) co-operatives
28. Which one of the following is NOT an informal sector loans for poor rural household in India?
(a) Commercial Banks
(b) Moneylenders
(c) Traders
(d) Landlords
► (a) Commercial Banks
29. In a SHG most of the decisions regarding loan activities are taken by
(a) Banks
(b) Member
(c) Non-government organizations
(d) Cooperatives
► (b) Member
30. Formal Sources of credit include :
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
► (b) co-operatives
31. Banks do not give loans:
(a) to small farmers
(b) to marginal farmers
(c) to industries
(d) without proper collateral and documents
► (d) without proper collateral and documents
32. Which one of the following agencies issues currency notes on behalf of the government of India?
(a) Ministry of Finance
(b) Reserve Bank of India
(c) State Bank of India
(d) World Bank
► (c) State Bank of India
33. Which one of the following is a major reason that prevents the poor from getting loans from the banks?
(a) Lack of capital
(b) Not affordable due to high rate of interest
(c) Absence of collateral security
(d) Absence of mediators
► (c) Absence of collateral security
34. Which one of the following is not a formal source of credit?
(a) Commercial Banks
(b) State Bank of India
(c) Employers
(d) Co-operatives
► (c) Employers
35. Which one of the following is the important characteristic of modern form of currency?
(a) It is made from precious metal
(b) It is made from thing of everyday use
(c) It is authorised by the commercial banks
(d) It is authorised by the Government of the country
► (d) It is authorised by the Government of the country
36. Which one of the following is the main source of credit for the rich households?
(a) Informal
(b) Formal
(c) Both formal and informal
(d) Neither Formal nor informal
► (b) Formal
37. Which is not the main source of credit from the following for rural households in India?
(a) Traders
(b) Relatives and friends
(c) Commercial Banks
(d) Moneylanders
► (a) Traders
38. Which among these is an essential feature of barter system?
(a) Money can easily exchange any commodity
(b) It is based on double co-incidence of wants
(c) It is generally accepted as a medium of exchange of goods with money
(d) It acts as a measure and store of value
► (b) It is based on double co-incidence of wants
39. Which one of the following is not included in the terms of credit?
(a) Rate of Interest
(b) Mode of payment
(c) Rate of saving
(d) Collateral
► (c) Rate of saving
40. Which households take more loans from the formal sector?
(a) Poor households and rich household.
(b) Well off households and households with few assets.
(c) Poor households and well off households
(d) Well off households and rich households.
► (d) Well off households and rich households.
41. When both parties agree to sell and buy each others commodities it is known as:
(a) measure of value
(b) double coincidence of wants
(c) store of value
(d) credit
► (b) double coincidence of wants
42. What portion of deposits are kept by the banks for their day to day transaction?
(a) 10%
(b) 15%
(c) 20%
(d) 25%
► (b) 15%
43. Banks use the major portion of the deposit to:
(a) Keep reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of the bank
► (c) Extend loans
44. Which is not the main source of credit from the following for rural households in India?
(a) Traders
(b) Relatives and friends
(c) Commercial Banks
(d) Moneylanders
► (a) Traders