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

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You can make a better understanding of the various topics by referring to the given MCQ Questions for Chapter 3 Money and Credit Class 10 Economics with answers. A good score in exams depends greatly on these one-mark questions. Through extensive practice, a student will become familiar with the patterns of questions and the types of questions you might see in an exam.

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

1. 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

2. Terms of credit are with respect to :
(a) Interest rate
(b) Collateral
(c) Documentation
(d) All the above
► (d) All the above

3. System of exchanging goods for goods is called :
(a) monetary system
(b) credit system
(c) barter system
(d) exchange system
► (c) barter system

4. Regional Rural Banks were set up in ______.
(a) 1969
(b) 1979
(c) 1989
(d) 1999
► (a) 1969

5. An asset that the borrower uses as a repayment guarantee to a lender is termed as a :
(a) deposit
(b) collateral
(c) advance
(d) all the above
► (b) collateral

6. When was the KCC (Kisan Credit Card) scheme introduced?
(a) 1969
(b) 1979
(c) 1987-88
(d) 1998-99
► (d) 1998-99

7. Who supervises the credit activities of lenders in the informal sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None of the above
► (d) None of the above

8. 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

9. 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

10. Productive loans by farmers are taken
(a) to buy seeds, fertilisers, implements etc.
(b) for celebration of marriages
(c) for storage of foodgrains in godowns
(d) none of the above
► (a) to buy seeds, fertilisers, implements etc.

11. Rich households in urban areas avail cheap credit from
(a) formal sources
(b) informal sources
(c) government
(d) all the above
► (d) all the above

12. Who supervises the functioning of formal sources of loans?
(a) Reserve Bank of India (RBI)
(b) Central government
(c) State government
(d) None
► (a) Reserve Bank of India (RBI)

13. 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

14. 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)

15. 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

16. 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.

17. 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.

18. 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

19. 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

20. 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

21. The functioning of the formal sources of credit are supervised by:
(a) Government of India
(b) Reserve Bank of India
(c) Ministry of finance
(d) State Bank of India
► (b) Reserve Bank of India

22. 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

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