Money and Credit Class 10 MCQ Questions

Money and Credit Class 10 MCQ Questions – Economics Chapter 3 MCQ are covered in this Article. Money and Credit Class 10 MCQ Test contains 30 questions. Answers to MCQ on Money and Credit Class 10 are available at the end of the last question. MCQ Questions for Class 10 help to check the concept you have learnt from detailed classroom sessions and application of your knowledge.

1._______ is known as a situation in which what a person desires to sell is exactly the same as what another person wishes to buy.

(a) Same desires

(b) Coincidence of desires

(c) Double coincidence of wants

(d) None of the above

Answer

Answer: (c) Double coincidence of wants


 

2. The system in which goods are sold and purchase without the use of money is called;

(a) Coincidence system

(b) Barter system

(c) Both(a)&(b)

(d) None of the above

Answer

Answer: (b) Barter system


 

3. _______ eliminates the need for double coincidence of wants.

(a) Money

(b) Barter system

(c) Necessary items

(d) Final goods

Answer

Answer: (a) Money


 

4. Money is also called_________.

(a) Substitute for barter system

(b) Medium of exchange

(c) Medium of purchase

(d) Medium of selling

Answer

Answer: (b) Medium of exchange





5. The modern forms of money include;

(a) Paper notes

(b) Coins

(c) Both (a)&(b)

(d) Bitcoins

Answer

Answer: (c) Both (a)&(b)


 

6. Modern currency is authorised by;

(a) State government

(b) State bank

(c) Central bank

(d) Central government

Answer

Answer: (d) Central government


 

7. In India,_______ issues currency on the behalf of the central government.

(a) State government

(b) State bank

(c) Central bank

(d) None of the above

Answer

Answer: (c) Central bank


 

8. _____ are the deposits in the bank account that can be withdrawn on demand.

(a) Currency

(b) Demand deposits

(c) Deposits with bank

(d) None of the above

Answer

Answer: (b) Demand deposits


 

9. Banks keep _____ portion of deposits with them.

(a) The entire

(b) Half

(c) Only a small

(d) Zero

Answer

Answer: (c) Only a small


 

10. Banks use the major portion of the deposits to;

(a) Extend loans

(b) Buy assets

(c) Both (a)&(b)

(d) None of the above

Answer

Answer: (a) Extend loans


 

Money and Credit Class 10 MCQ Questions

11. _______ mediates between depositors and borrowers.

(a) State government

(b) Commercial bank

(c) Central government

(d) Both (b)&(c)

Answer

Answer: (b) Commercial bank


 

12. The main source of income for banks is________.

(a) Loans

(b)Profit

(c) Difference between loan and deposits

(d) All of the above

Answer

Answer: (c) Difference between loan and deposits


 

13. _______ refers to an agreement in which the lender supplies the borrower with Money in return for the promise of future payment.

(a) Loan

(b) Credit

(c) Deposit

(d) Cheque

Answer

Answer: (b) Credit


 

14. The major demand for credit in rural areas is _________.

(a) Industrial development

(b) Cattle maintenance

(c) Personal use

(d) Crop production

Answer

Answer: (d) Crop production





15. Which of the following are included in the crop production?

(a) Cost of seeds

(b) Fertilizers

(c) Pesticides

(d) All of the above

Answer

Answer: (d) All of the above


 

16. ________ is an asset that the borrower owns and uses it as a guarantee to pay his loan.

(a) Credit

(b) Cheque

(c) Collateral

(d) Cash

Answer

Answer: (c) Collateral


 

17. Other than banks, the major source of credit for rural people is;

(a) Money lenders

(b) Cooperative societies

(c) Self help groups

(d) All of the above

Answer

Answer: (d) All of the above


 

18. Which of the following are examples of cooperative societies?

(a) Krishak cooperatives

(b) Farmers cooperatives

(c) Industrial cooperatives

(d) All of the above

Answer

Answer: (d) All of the above


 

19. Loans from banks and cooperatives are _____ loans.

(a) Formal

(b) Informal

(c) Short term

(d) Long term

Answer

Answer: (a) Formal


 

20. Informal lenders are;

(a) Moneylenders

(b) Traders

(c) Friends and relatives

(d) All of the above

Answer

Answer: (d) All of the above


 

Money and Credit Class 10 MCQ Questions

21. ______ supervises the functioning of formal sector

(a) Government

(b) Central bank

(c) Both (a)&(b)

(d) Commercial bank

Answer

Answer: (b) Central bank


 

22. Increasing debt leads to;

(a) Early repayment of loan

(b) Delayed payment of loan

(c) Debt trap

(d) None of the above

Answer

Answer: (c) Debt trap


 

23. ________ credit is essential for country’s development

(a) Cheap

(b) Affordable

(c) Both (a)&(b)

(d) None of the above

Answer

Answer: (c) Both (a)&(b)


 

24. Rural areas depend on ______ for their credit needs.

(a) Informal lenders

(b) RBI

(c) Cooperative

(d) All of the above

Answer

Answer: (a) Informal lenders





25. ______ is the major reason that prevents the poor from getting loans.

(a) Absence of collateral

(b) Documentation

(c) Tough procedure

(d) All of the above

Answer

Answer: (d) All of the above


 

26. _______ is based on the idea to organise women of the same neighborhood to pool their savings.

(a) Informal lenders

(b) Self help groups

(c) Cooperative societies

(d) Formal sector

Answer

Answer: (b) Self help groups


 

27. A general self help group have ____ members.

(a) 50-60

(b) 40-45

(c) 15-20

(d) Unlimited

Answer

Answer: (c) 15-20


 

28. ______ overcomes the problem of lack of collateral.

(a) Self help groups

(b) Cooperative societies

(c) Formal sector

(d) Informal lenders

Answer

Answer: (a) Self help groups


 

29. Self help groups helps in;

(a) Women empowerment

(b) Self reliance

(c) Platform for social issues

(d) All of the above

Answer

Answer: (d) All of the above


 

30. Which social issues are raised in a self help group?

(a) Domestic violence

(b) Dowry

(c) Health and nutrition

(d) All of the above

Answer

Answer: (d) All of the above


 

MCQ Questions for Economics Class 10

Frequently Asked Questions on Money and Credit Class 10 MCQ Questions

1. Are these MCQ’s on Money and Credit Class 10 are based on 2021-22 CBSE Syllabus?

Yes . There are 30 MCQ’s on this Chapter in this blog.

2. Are you giving all the chapters of Social Science Class 10 MCQs with Answers which are given in CBSE syllabus for 2021-22 ?

Yes, we are providing all the chapters of Social Science Class 10 MCQs with Answers.

Leave a Comment