MCQ Question for Class 10 Social Science Economics Chapter 3 Money and Credit with answer

MCQ Questions for Class 10 Social Science : MCQ Questions for Class 10 Social Science Civics Chapter 1 Development with Answers is very important for the students. Free Video Class 10 for SSt on Youtube

MCQ Question for Class 10 Social Science Economics Chapter 3 Money and Credit with answer

MCQ Question for Class 10 Social Science Economics Chapter 3 Money and Credit with answer download PDF

Question 1.
Which one of the following is a formal source of credit?
(a) Traders
(b) Cooperative societies
(c) Moneylenders
(d) Friends and relatives

Answer: (b) Cooperative societies


Question 2.
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.

Answer: (c) It is an asset of the borrower used as guarantee to a lender.


Question 3.
Which one of the following is a modern form of currency?
(a) Paper notes
(b) Gold
(c) Silver
(d) Copper

Answer: (a) Paper notes


Question 4.
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

Answer: (c) Self-Help Groups


Question 5.
Which of the following is the main informal source of credit for rural households in India?
(a) Friends
(b) Relatives
(c) Landlords
(d) Moneylenders

Answer: (d) Moneylenders


Question 6.
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

Answer: (a) Barter system


Question 7.
Grameen Bank of Bangladesh was started in
(a) 1960s
(b) 1970s
(c) 1980s
(d) 1990s

Answer: (b) 1970s


Question 8.
In a SHG, most of the decisions regarding loan activities are taken by
(a) Banks
(b) Members
(c) Non-government organisation
(d) Cooperative

Answer: (b) Members


Question 9.
Which of the following is not an informal source of credit?
(a) Money-lender
(b) Relatives and Friends
(c) Commercial Banks
(d) Traders

Answer: (c) Commercial Banks


Question 10.
In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?
(a) Bhuta
(b) Sri Lanka
(c) Bangladesh
(d) Nepal

Answer: (c) Bangladesh


Question 11.
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

Answer: (a) Traders


Question 12.
What portion of deposits are kept by the banks for their day to day transaction?
(a) 10%
(b) 15%
(c) 20%
(d) 25%

Answer: (b) 15%


Question 13.
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.

Answer: (d) Well off households and rich households.


Question 14.
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

Answer: (b) It is based on double co-incidence of wants


Question 15.
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

Answer: (b) Formal


Question 16.
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

Answer: (c) Employers


Question 17.
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

Answer: (b) Reserve Bank of India


Question 18.
Formal Sources of credit include :
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies

Answer: (b) co-operatives


Question 19.
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

Answer: (a) Commercial Banks


Question 20.
Which one of the following is not a modern form of money?
(a) Demand Deposits
(b) Paper currency
(c) Coins
(d) Precious metals

Answer: (d) Precious metals


Question 21.
Identify the formal source of credit:
(a) Cooperative societies
(b) Moneylenders
(c) Traders
(d) Landlords

Answer: (a) Cooperative societies


Question 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

Answer: (a) Self-help group (SHG)


Question 23.
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

Answer: (c) Silver coins


Question 24.
Formal sources of credit include
(a) banks
(b) moneylenders
(c) employers
(d) all the above

Answer: (a) banks


Question 25.
Rate of interest charged by moneylenders as compared to that charged by banks is:
(a) lower
(b) same
(c) slightly higher
(d) much higher

Answer: (d) much higher


Question 26.
Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka

Answer: (a) Andhra Pradesh


Question 27.
Who supervises the credit activities of lenders in the informal sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None

Answer: (d) None


Question 28.
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

Answer: (c) Plastic money


Question 29.
Currency is issued in India by :
(a) commercial banks
(b) regional rural banks
(c) nationalised banks
(d) Reserve Bank of India

Answer: (d) Reserve Bank of India


Question 30.
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

Answer: (b) a small proportion


Question 31.
System of exchanging goods for goods is called:
(a) monetary system
(b) credit system
(c) barter system
(d) exchange system

Answer: (c) barter system


Question 32.
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

Answer: (d) all the above