MCQ Questions for Class 10 Economics Chapter 3 Money and Credit with Answers

Free PDF Download of CBSE Class 10 Social Science Economics Chapter 3 Money and Credit Multiple Choice Questions with Answers. MCQ Questions for Class 10 Social Science with Answers was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 10 Social Science Money and Credit MCQs with Answers to know their preparation level.

Q1. What do the banks do with the deposits which I they accept from the customers?

(a) Banks use these deposits for charitable activities.
(b) Banks use a major portion of deposits to extend loans.
(c) Banks use deposits to give bonus to their employees.
(d) Banks use deposits to set up more branches in the country.

(b) Banks use a major portion of deposits to extend loans.

Q2. What is the main source of income of a bank?

(a) Bank charges that the depositors pay for ; keeping their money safe is the main ; source of the bank’s income.
(b) The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.
(c) Banks earn huge amounts of money by investing the money of the depositors in various company shares.
(d) The Government of India gives huge amounts of money to the banks to help their smooth functioning.

(b) The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.

Q3. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to

(a) Debt
(b) Deposit
(c) Credit
(d) Collateral

Q4. Which body (authority) supervises the functioning of formal sources of loans?

(a) Finance Ministry
(b) Head Office of each Bank
(c) Reserve Bank
(d) Cooperative Societies

Q5. Money-lenders usually demand a ‘security’ from the borrower. What is the formal word used for the ‘security’, such as land, vehicle, livestock, building, etc.?

(a) Deposit
(b) Collateral
(c) Credit
(d) Guarantee

(b) Collateral

Q6. Which one of the following is the appropriate meaning of collateral?

(a) It is the sum total of money borrowed from banks.
(b) The amount borrowed from friends.
(c) It is an asset of the borrower used as guarantee to a lender.
(d) The amount invested in a business.

Q7. Which one of the following is a modern form of currency?

(a) Paper notes
(b) Gold
(c) Silver
(d) Copper

(a) Paper notes

Q8. Which one of the following is the newer way of providing loans to the rural poor, particularly women?

(a) Cooperative Banks
(b) Grameen Banks
(c) Self-Help Groups
(d) Moneylenders

(d) Moneylenders

Q9. Which of the following is the main informal source of credit for rural households in India?

(a) Friends
(b) Relatives
(c) Landlords
(d) Moneylenders

(a) Friends

Q10. Name the system in which the double coincidence of wants is an essential feature.

(a) Barter system
(b) Money economy
(c) Global economy
(d) None of these

(d) None of these

Q11. Sometimes lenders demand against loan:

(a) Payment
(b) Cheque
(c) Draft
(d) Collateral

(d) Collateral

Q12. Interest rate, security and documentation requirement, and the mode of repayment together comprise what is called the:

(a) Loan factor
(b) Credit factor
(c) Terms of loan
(d) Terms of credit

Q13. Loans from banks and cooperatives are called:

(a) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loan

(d) Informal loan

Q14. Loans from moneylenders, traders, employers, relatives and friends are called:

(a) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loans

(d) Informal loans

Q15. The RBI monitors the banks are actually maintaining:

(a) Cash books
(b) Cash balance
(c) Cash register
(d) None of the above

(b) Cash balance

Q16. 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.

Q17. Formal Sources of credit include:

(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies

(b) co-operatives

Q18. 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

Q19. 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

Q20. Formal Sources of credit include :