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Money and Credit Class 10 MCQs Questions with Answers
Question 1.
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.
Answer
Answer: (d) Does not help women to become self-reliant.
Question 2.
Identify the formal source of credit:
(a) Cooperative societies
(b) Moneylenders
(c) Traders
(d) Landlords
Answer
Answer: (a) Cooperative societies
Question 3.
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.
Answer
Answer: (d) Availability of money as a medium of exchange.
Question 4
Which one of the following is not a modern form of money?
(a) Demand Deposits
(b) Paper currency
(c) Coins
(d) Precious metals
Answer
Answer: (d) Precious metals
Question 5.
Formal Sources of credit include:
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
Answer
Answer: (b) co-operatives
Question 6.
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
Answer: (a) Commercial Banks
Question 7.
In a SHG most of the decisions regarding loan activities are taken by
(a) Banks
(b) Member
(c) Non-government organizations
(d) Cooperatives
Answer
Answer: (b) Member
Question 8.
Formal Sources of credit include :
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies
Answer
Answer: (b) co-operatives
Question 9.
Banks do not give loans:
(a) to small farmers
(b) to marginal farmers
(c) to industries
(d) without proper collateral and documents
Answer
Answer: (d) without proper collateral and documents
Question 10.
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
Answer: (c) State Bank of India
Question 11.
Which one of the following is a major reason that prevents the poor from getting loans from the banks?
(a) Lack of capital
(b) Not affordable due to high rate of interest
(c) Absence of collateral security
(d) Absence of mediators
Answer
Answer: (c) Absence of collateral security
Question 12.
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
Answer: (c) Employers
Question 13.
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
Answer
Answer: (d) It is authorised by the Government of the country
Question 14.
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
Answer: (b) Formal
Question 15.
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
Answer: (a) Traders
Question 16.
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
Answer: (b) It is based on double co-incidence of wants
Question 17.
Which one of the following is not included in the terms of credit?
(a) Rate of Interest
(b) Mode of payment
(c) Rate of saving
(d) Collateral
Answer
Answer: (c) Rate of saving
Question 18.
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
Answer: (d) Well off households and rich households.
Question 19.
When both parties agree to sell and buy each others commodities it is known as:
(a) measure of value
(b) double coincidence of wants
(c) store of value
(d) credit
Answer
Answer: (b) double coincidence of wants
Question 20.
What portion of deposits are kept by the banks for their day to day transaction?
(a) 10%
(b) 15%
(c) 20%
(d) 25%
Answer
Answer: (b) 15%
Question 21.
Banks use the major portion of the deposit to:
(a) Keep reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of the bank
Answer
Answer: (c) Extend loans
Question 22.
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
Answer: (a) Traders
Question 23.
Credit or loan refers to an agreement between:
(a) lender and borrower
(b) consumer and producer
(c) government and tax payer
(d) all the above
Answer
Answer: (a) lender and borrower
Question 24.
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
Answer: (d) all the above
Question 25.
Terms of credit are with respect to:
(a) interest rate
(b) collateral
(c) documentation
(d) all the above
Answer
Answer: (d) all the above
Question 26.
System of exchanging goods for goods is called:
(a) monetary system
(b) credit system
(c) barter system
(d) exchange system
Answer
Answer: (c) barter system
Question 27.
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
Answer: (c) Plastic money
Question 28.
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
Answer: (b) a small proportion
Question 29.
What are the modern forms of money?
(a) Currency
(b) Plastic money
(c) Demand deposits
(d) All the above
Answer
Answer: (d) All the above
Question 30
Currency is issued in India by :
(a) commercial banks
(b) regional rural banks
(c) nationalised banks
(d) Reserve Bank of India
Answer
Answer: (d) Reserve Bank of India
Question 31.
Terms of credit are with respect to :
(a) interest rate
(b) collateral
(c) documentation
(d) all the above
Answer
Answer: (d) all the above
Question 32.
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
Answer: (c) Plastic money
Question 33.
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
Answer: (a) Andhra Pradesh
Question 34.
Who supervises the credit activities of lenders in the informal sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None
Answer
Answer: (d) None
Question 35.
Which of the following is not a source of rural credit?
(a) Regional rural banks
(b) Moneylenders
(c) Traders
(d) Government
Answer
Answer: (d) Government
Question 36.
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
Answer: (a) Andhra Pradesh
Question 37.
Regional Rural Banks were set up in ________.
(a) 1969
(b) 1979
(c) 1989
(d) 1999
Answer
Answer: (a) 1969
Question 38.
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
Answer: (d) much higher
Question 39.
Who supervises the functioning of formal sources of loans?
(a) Reserve Bank of India
(b) Central government
(c) State government
(d) None
Answer
Answer: (a) Reserve Bank of India
Question 40.
Formal sources of credit include
(a) banks
(b) moneylenders
(c) employers
(d) all the above
Answer
Answer: (a) banks
Question 41.
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
Answer
Answer: (a) Absence of collateral (security)
Question 42.
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
Answer: (c) Silver coins
Question 43.
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.
Answer
Answer: (a) Reserve Bank of India
Question 44.
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
Answer: (a) Self-help group (SHG)
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