Class 10 Social Science Chapter 3 Money and Credit MCQ Questions with Answer

Money and Credit Class 10 MCQ is one of the best strategies to prepare for the CBSE Class 10 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more Money and Credit class 10 MCQ which will help them all through their board test.

Money and Credit Class 10 MCQ Questions with Answer

Class 10 Social Science MCQ with answers are given here to Chapter 3 Money and Credit. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 10 Social Science syllabus. By Solving these Class 10 MCQs, you will be able to analyze all of the concepts quickly in the Chapter and get ready for the Class 10 Annual exam.

Learn Money and Credit Class 10 MCQ with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 10 Money and Credit MCQ with answers given below.

Question 1. Demonetization was announced by Prime Minister Modi on- 
(a) 1 january ,2016
(b) 8 November, 2016
(c) 1 July, 2017
(d) 28 December , 2016

Question 2. The benefit of depositing money in a bank is that
(a) it makes easy to get loan.
(b) it earns interest.
(c) it earns status.
(d) it increases country’s national income.

Question 3. Credit is generally given at a high rate of interest by
(a) cooperatives.
(b) self help groups.
(c) money lenders.
(d) banks.

Question 4. In India the currency note is issued by
(a) Reserve Bank of India
(b) State Bank of India
(c) NABARD
(d) Bank of India

Question 5. An asset that a borrower uses as a guarantee is called
(a) collateral.
(b) debit card.
(c) credit card.
(d) deposits

Question 6. Excess supply of money will not create inflationary pressure if, in the country,
(a) demand for different good and services increase.
(b) productivity increases.
(c) rate of tax decreases.
(d) rate of interest decreases.

Question 7. How many members are there in Krishak Cooperative?
(a) 1200
(b) 1500
(c) 2300
(d) 2700

Question 8. Who is the Governor of Reserve Bank of India at present
(a) Raghu Ram Rajan
(b) Urjit Patel
(c) P. Chidamabaram
(d) Narayan Reddy

Question 9. What do you mean by ‘credit’?
(a) Agreement in which the lender(bank or moneylender) lends money, goods and services in return for the promise of future payment
(b) Agreement in which the lender lends money without the promise of future payment
(c) Agreement in which the moneylenders lends money to poor borrowers
(d) Agreement in which only relatives lends money to borrowers

Question 10. What was ‘Barter System’ based on?
(a) Double coincidence of wants
(b) Wants of buyer
(c) Wants of seller
(d) Climatic conditions

Question 11. Why is money called a ‘medium of exchange’ ?
(a) Since money can create loan
(b) Since money adds to the value of a commodity
(c) Since money is portable
(d) Since money acts as an intermediate in the process of exchange

Question 12. What is the function of RBI?
(a) Supervises the formal sources of loan
(b) Supervises the informal sources of loan
(c) To issue currency notes only
(d) Provides loans to poor

Question 13. Why is currency accepted as a medium of exchange?
(a) Currency has no weight
(b) Currency is easy to carry
(c) Currency is authorized by the government of the country
(d) Because RBI issues it

Question 14. Credit from____ pushes the borrower into a painful situation.
(a) Cooperateves
(b) SHG
(c) Moneylenders
(d) Banks

Question 15. What is the income of a bank?
(a) Deposits of the depositors
(b) Salary given by government to bank officials
(c) Difference between what is charged from borrowers and what is paid to depositors
(d) Repayment of loans

Question 16. How much percentage of a bank’s deposits does the bank hold as cash?
(a) 15%
(b) 20%
(c) 10%
(d) 12%

Question 17. SHG members usually belongs to________.
(a) Different states
(b) Different neighbourhood
(c) One neighbourhood
(d) Rich family

Question 18. What are ‘demand deposits’ ?
(a) Deposits with banks kept for at least 10 yrs
(b) Deposits with bank which can be withdrawn on demand
(c) Deposits in bank in form of jewellery only
(d) Deposits with banks kept for at least 5 yrs

Question 19. Which is a form of Collateral?
(a) Saving account
(b) Debit card
(c) Credit card
(d) Vehicle

Question 20. Which bank issues notes on behalf of Government?
(a) SBI
(b) RBI
(c) ICICI
(d) HDFC

Question 21. How many members are their in SHG?
(a) 10-15
(b) 15-20
(c) 20-25
(d) 25-30

Question 22. _______credit is crucial for the development of a country.
(a) Higher cost of
(b) Less
(c) Cheap
(d) Industrial

Question 23. What do you mean by ‘collateral’?
(a) It is a liability that the borrower bears while taking loan
(b) It is a document used in the process of taking credit
(c) An asset that a borrower owns and the lender uses it as a guarantee until the loan is re-paid
(d) It is an asset

Question 24. Which of the following is a source of formal sector loan?
(a) Relatives
(b) Banks
(c) Moneylenders
(d) Traders

Whoever needs to take the CBSE Class 10 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 10 Social Science Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Money and Credit Class 10 MCQ are ready by the subject specialists themselves.

Question 25. Why is it necessary that banks and cooperatives increase their lending particularly in rural areas?
(a) To reduce the dependence on informal sources of credit
(b) To promote informal sources of credit in urban areas
(c) To provide high interest rate
(d) To increase the deposits of commercial banks

Question 26. Absence of __________ is one of the major reasons which prevent the poor from getting bank loans.
(a) Ration card
(b) Cash money
(c) Collateral
(d) Account with that bank

Question 27. Money is accepted as a ‘medium of exchange’ because
(a) money can create loan.
(b) money adds to the value of a commodity.
(c) money is portable.
(d) money facilitates the process of exchange.

Question 28. The modern form of currency includes
(a) silver coins.
(b) gold coins.
(c) gold and paper notes.
(d) paper notes and coins.

Question 29. Organisations of rural poor, that help borrowers to overcome the problem of lack of collateral are
(a) Self Help Groups.
(b) Service Holder Groups.
(c) Self Housing Groups.
(d) Soul Harassing Groups.

Question 30. In which year Reserve Bank was set up ? 
(a) 1930
(b) 1935
(c) 1940
(d) 1945

Question 31. Paper notes and coins are accepted as a medium of exchange because they are
(a) light in weight.
(b) easy to carry.
(c) authorised by the government.
(d) issued by the Resrve Bank of India.

Question 32. The terms of credit comprise of ________.
(a) Fixed deposit
(b) Voter card
(c) Collateral
(d) Pan card

Question 33. ……………is authorised to issue currency in india 
(a) Commercial Bank
(b) Reserve Bank of India
(c) NABARD
(d) Finance Companies

Question 34. Credit activities of the commercial banks are regulated by
(a) Central government.
(b) State goverment.
(c) State Bank of India.
(d) Reserve Bank of India.

Question 35. Formal sources of loans include loans from 
(A) Banks
(B) Money lenders
(C) Co-operatives socities
(D) Traders.
(a) a and b
(b) a and d
(c) b and c
(d) a and c

Question 36. In a SHG (Self Help Group) important decisions in regard to loan and savings are taken by:
(a) Govt. organization
(b) Bank
(c) Non-government organization
(d) Members

Question 37. The deposits sharing the essential feature of money are called
(a) fixed deposits.
(b) demand deposits.
(c) saving deposits.
(d) regular deposits.

Question 38. Example of barter exchange is 
(a) Purchasing wheat with money
(b) Purchasing fruits with money
(c) purchasing milk with money
(d) purchasing sugar with wheat

Question 39. Exchange of goods with other goods is called
(a) barter exchange.
(b) money exchange.
(c) commodity exchange.
(d) goods exchange.

Question 40. People deposit money in the bank because 
(A) Get interest
(B) Money remains secured
(C) Money is used in country’s development
(D) Value of money increases
(a) A and B
(b) B and C
(c) A, B and C
(d) A, B, C and D

Question 41. The rate at which Central Bank gives credit to commercial banks is called?
(a) Bank Rate
(b) Interest Rate
(c) Cash Reserve Ratio
(d) Statutory Liquidity Ratio

Question 42. Which of the following is an example of working capital
(a) Tools
(b) Machine
(c) Building
(d) Raw Material

Question 43. IMF stands for what ? 
(a) International Military Force
(b) International Monetary Fund
(c) Indian Monetary Fund
(d) Indian monetary force

Question 44. Bank use the major portion of the deposits to : 
(a) Keep as reserve so that people may withdraw
(b) Meet their routine expenses and salary of staff
(c) Meet renovation and expansion of bank
(d) Extend loans

Question 45. Which Bank was merged with Punjab National Bank in 1993 ?
(a) New Bank of India
(b) Bank of Maharashtra
(c) Kashi Nath Bank
(d) Indus Bank

Question 46. Monetary Measures to control inflation_______ 
(a) Reduction in public expenditure
(b) Increase in cash reserve ratio
(c) Increase in taxes
(d) Surplus budget

Question 47. The purpose of devaluation of India rupee is : 
(a) To reduce imports and to increase exports.
(b) To increase imports and to reduce exports.
(c) To reduce differences between value of goods and value of services imported
(d) To maintain favourable balance of payments.

Question 48. Which one of the following statement is incorrect regarding commercial banking?
(a) It deals with money. It accepts deposits and advance loans.
(b) It deals with credit and has power to create credit.
(c) It deals with the general public
(d) It is not a commercial institutions whose aim is to earn profit

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