CBSE MCQ Questions for Class 10 Social Science Money and Credit
CBSE Money and Credit Multiple-choice Questions (MCQs) will help students to study the topics related to Money and Credit. It is an important chapter in the syllabus of Class 10 Social Science. Solving the Money and Credit MCQ Questions, in addition to referring to the CBSE Class 10 Social Science Notes, will help students to understand the chapters in a comprehensive manner and be better prepared for the board examination.
Students must solve MCQ Questions and CBSE Sample Papers of Class 10 Social Science to understand their level of preparation. Money and Credit MCQs given below will help students to revise and recollect the important concepts and points related to topics such as money as a medium of exchange, modern forms of money, loan activities of banks, two different credit situations, terms of credit, loans from cooperatives, formal sector credit in India, informal sector credit in India, and self-help groups for poor.
Apart from the MCQs given below, students are advised to access MCQ Questions and Answers for Class 10 Social Science to get the complete list of MCQs for all the chapters of Class 10 Social Science subjects, History, Geography, Political Science and Economics.
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1) Double coincidence of wants means ____________.
a) What a person desires to sell is exactly what the other person wishes to buy.
b) What a person desires to sell is exactly what the other person also wishes to sell.
c) What a person desires to buy is exactly what the other person also wishes to buy.
d) None of the above.
Answer: Option (a)
2) In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature.
a) False
b) True
Answer: Option (b)
3) In India, _____________ issues currency notes on behalf of the Central Government.
a) Reserve Bank of India (RBI)
b) Ministry of Finance
c) Finance Commission
d) None of the above
Answer: Option (a)
4) Which of the following statements is true?
a) As per Indian law, apart from RBI, no other individual or organisation is allowed to issue currency.
b) The law legalises the use of rupees as a medium of payment that cannot be refused in settling transactions in India
c) No individual in India can legally refuse a payment made in rupees.
d) All of the above.
Answer: Option (d)
5) Banks in India these days hold about _________ of their deposits as cash.
a) 25 per cent
b) 20 per cent
c) 15 per cent
d) 5 per cent
Answer: Option (c)
6) Banks use the major portion of the deposits to ______.
a) Extend loans
b) Invest in infrastructure
c) Deposit in foreign banks
d) None of the above
Answer: Option (a)
7) The difference between what is charged from borrowers and what is paid to depositors is the main source of banks’ income.
a) True
b) False
Answer: Option (a)
8) In rural areas, the main demand for credit is for ________.
a) Purchasing land
b) Purchasing a house
c) Medical expenses
d) Crop production
Answer: Option (d)
9) Which of the following is an example of collateral?
a) Livestock
b) Land
c) Deposits with banks
d) All of the above
Answer: Option (d)
10) What are the different components of the terms of credit?
a) Interest rate
b) Documentation requirements
c) Collateral
d) All of the above
Answer: Option (d)
11) Which of the following statements is correct?
a) Members of a cooperative pool their resources for cooperation in certain areas.
b) Besides banks, the other major source of cheap credit in rural areas is cooperative societies.
c) There are several types of cooperatives possible, such as farmers cooperatives, weavers cooperatives, and industrial workers cooperatives.
d) All of the above.
Answer: Option (d)
12) Which of the following are examples of informal sector loans?
a) Moneylenders
b) Traders
c) Cooperatives
d) Only (a) and (b)
Answer: Option (d)
13) As of 2012, the major source of credit to rural households in India was _______.
a) Moneylenders.
b) Commercial banks.
c) Cooperative societies.
d) Relatives and friends.
Answer: Option (a)
14) Which of the following statements is false?
a) There is no organisation which supervises the credit activities of lenders in the informal sector.
b) RBI stops the money lenders from using unfair means to get their money back.
c) Compared to the formal lenders, most of the informal lenders charge much lesser interest on loans
d) Both (b) and (c)
Answer: Option (d)
15) Which of the following statements is true?
a) Periodically, banks do not submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.
b) The Reserve Bank of India does not supervise the functioning of formal sources of loans.
c) The RBI monitors the banks in actually maintaining cash balances.
d) None of the above.
Answer: Option (c)
16) ___________ of the loans taken by poor households in the urban areas are from informal sources.
a) 85 per cent
b) 70 per cent
c) 65 per cent
d) 50 per cent
Answer: Option (a)
17) ___________ of the loans taken by rich households in the urban areas are from formal sources.
a) 20 per cent
b) 10 per cent
c) 15 per cent
d) 90 per cent
Answer: Option (d)
18) ___________ of the loans taken by well-off households in the urban areas are from formal sources.
a) 54 per cent
b) 64 per cent
c) 72 per cent
d) 90 per cent
Answer: Option (c)
19) ___________ of the loans taken by households with few assets in the urban areas are from informal sources.
a) 72 per cent
b) 28 per cent
c) 53 per cent
d) 47 per cent
Answer: Option (c)
20) Which of the following could lead to a debt trap?
a) The high-interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower.
b) Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan.
c) The high-interest rate for borrowing can mean that the amount to be repaid is lesser than the income of the borrower.
d) Both (a) and (b.)
Answer: Option (d)
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