This quiz works best with JavaScript enabled. Home > Cbse > Class 10 > Economics > Money And Credit > Class 10 Economics Chapter 3 Money And Credit – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 10 Economics Chapter 3 Money And Credit Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is/are included in Terms of Credir A) Collateral. B) Interest Rate. C) Documents needed. D) Mode of Repayment. E) All the above. Show Answer Correct Answer: E) All the above. 2. How many members a typical Self-Help Group Should have? A) 20-25. B) 14-19. C) 25-30. D) 15-20. Show Answer Correct Answer: D) 15-20. 3. Saving per member varies from Rs ..... to Rs ..... or more. A) 25 to 50. B) 50 to 100. C) 25 to 100. D) 75 to 100. Show Answer Correct Answer: C) 25 to 100. 4. Which of the following will be given in cheaper Interest Rate? A) Formal Loan. B) Informal Loan. C) All the above. D) None of the above. Show Answer Correct Answer: A) Formal Loan. 5. The statutory Liquidity Ratio (SLR) refers to A) Ratio of deposits that the banks required to keep with RBI. B) The ratio at which the RBI lends funds to banks. C) The minimum cash which the banks have to keep with themselves. D) Ratio of maximum amount of credit given to a particular use or sector. Show Answer Correct Answer: C) The minimum cash which the banks have to keep with themselves. 6. Among 20 public sector commercial banks in India A) 14 nationalized in 1967 and 6 in 1980. B) 14 nationalized in 1969 and 6 in 1980. C) 12 nationalized in 1967 and 8 in 1980. D) 12 nationalized in 1969 and 8 in 1980. Show Answer Correct Answer: B) 14 nationalized in 1969 and 6 in 1980. 7. Which of the following are examples of informal sector loans? A) Moneylenders. B) Traders. C) Cooperatives. D) Only (a) and (b). Show Answer Correct Answer: D) Only (a) and (b). 8. Terms of credit are with respect to: A) Interest rate. B) Collateral. C) Documentation. D) All the above. Show Answer Correct Answer: D) All the above. 9. Why is currency accepted as a medium of exchange? A) Because the currency is authorised by the government of the country. B) Because the use of currency has its origin in ancient times. C) Because it is liked by the people who use it. D) Because the currency is authorised by the World Bank. Show Answer Correct Answer: A) Because the currency is authorised by the government of the country. 10. Which of the following is not coming under informal source of credit for rural households in India? A) Friends. B) Relatives. C) Landlords. D) Commercial Bank. Show Answer Correct Answer: D) Commercial Bank. 11. When both parties have to agree to sell and buy each others commodities. This is known as ..... A) Medium of exchange. B) Barter system. C) Double coincidence of wants. D) None of the above. Show Answer Correct Answer: C) Double coincidence of wants. 12. For the purposes of monetary management, M1 and M2 are referred to as A) Commodity money. B) Broad money. C) Narrow money. D) Representative money. Show Answer Correct Answer: C) Narrow money. 13. The deposits in the bank accounts are known as ..... A) Demand deposits. B) Smart accounts. C) All the above. D) None of the above. Show Answer Correct Answer: A) Demand deposits. 14. Reserve Bank of India was nationalised on A) 1 Ste Jan 1949. B) 1st April 1935. C) 1 Ste Jan 1935. D) 1st April 1949. Show Answer Correct Answer: A) 1 Ste Jan 1949. 15. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. A) Cheque. B) Chit fund. C) Bank. D) Credit. Show Answer Correct Answer: D) Credit. 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. Show Answer Correct Answer: B) It is based on double co-incidence of wants. 17. At present which form of money is increasingly used apart from paper money? A) Bitcoins. B) Metallic money. C) Plastic money. D) All the above. Show Answer Correct Answer: C) Plastic money. 18. How many languages are seen on an Indian Currency note? A) 18. B) 16. C) 15. D) 17. Show Answer Correct Answer: D) 17. 19. Where will you find the disguised unemployment most? Select the correct option from those given below: A) Among agricultural workers working for small farm lands. B) Among part-time industrial workers. C) In most of the government offices. D) In big private companies. Show Answer Correct Answer: A) Among agricultural workers working for small farm lands. 20. The legal tender of money in England is called A) Yuan. B) Dollar. C) Pound. D) Yen. Show Answer Correct Answer: C) Pound. 21. Terms of credit does not include A) Collateral. B) Cheque. C) Interest rate. D) Mode of repayment. Show Answer Correct Answer: B) Cheque. 22. 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. Show Answer Correct Answer: C) Silver coins. 23. Megha is submitting the following as collateral A) Salary slip. B) Documents of her new house. C) Plan of her new house. D) None of the above. Show Answer Correct Answer: B) Documents of her new house. 24. Cheap and affordable ..... is crucial for the country's development. A) Loan. B) Credit. C) Money. D) None of the above. Show Answer Correct Answer: B) Credit. 25. Which one of the following is not a modern form of currency? A) Paper Notes. B) Barter Exchange. C) Plastic Money. D) Coins. Show Answer Correct Answer: B) Barter Exchange. 26. Which bank acts as financial adviser to the Government A) State Bank of India. B) Reserve bank of India (RBI). C) Regional Rural Banks. D) Private Sector Banks. Show Answer Correct Answer: B) Reserve bank of India (RBI). 27. The Reserve Bank of India was established on A) 1st January 1935. B) 1 st January 1949. C) 1st April 1949. D) 1'st April 1935. Show Answer Correct Answer: D) 1'st April 1935. 28. Which of the following does not constitute a part of informal credit in India? A) Commercial Bank. B) Moneylenders. C) Friends and relatives. D) Zamindars. Show Answer Correct Answer: A) Commercial Bank. 29. Which one is the following is the important characteristic of modern form of currency? A) It is authorized by the Government of the country. B) It is authorized by commercial banks. C) It is made from precious metal. D) It is made from thing of everyday use. Show Answer Correct Answer: A) It is authorized by the Government of the country. 30. After ..... or ..... , if the SHG is regular in savings, it becomes eligible for availing loan from the bank. A) A year or two. B) 3 years or 4 years. C) 6 months or 1 year. D) 5 years or 6 years. Show Answer Correct Answer: A) A year or two. 31. Money is anything which is widely accepted in payment for goods or discharge of other business obligations.This was said by A) Collin Clark. B) Robertson. C) Maier and Baldwin. D) Karl Marx. Show Answer Correct Answer: B) Robertson. 32. Which one of the following is the newer way of providing loans to the rural poor, particularly women? A) Grameen Banks. B) Cooperative Banks. C) Self-Help Groups. D) Moneylenders. Show Answer Correct Answer: C) Self-Help Groups. 33. Banks offer higher rates of interest on A) Current account. B) Fixed deposits. C) Savings account. D) Recurring deposits. Show Answer Correct Answer: B) Fixed deposits. 34. Absence of ..... as a guarantee is a major cause that prevents poor people from obtaining loans from formal sector sources, such as commercial banks. A) Collateral. B) Paper notes, coins. C) Double coincidence. D) Money. Show Answer Correct Answer: A) Collateral. 35. The Informal source of credit does not include which one of the following? A) Traders. B) Money-lenders. C) Cooperative Societies. D) Friends. Show Answer Correct Answer: C) Cooperative Societies. 36. Which of the following does not come under modern forms of money A) Currency. B) Precious metals. C) Coins. D) Demand deposits. Show Answer Correct Answer: B) Precious metals. 37. Monetary policy doesn' t include A) Measures taken to regulate credit. B) Measures taken to regulate Overall money supply. C) Measures taken to regulate interest rate. D) Measures taken to regulate income distribution in the country. Show Answer Correct Answer: D) Measures taken to regulate income distribution in the country. 38. A ..... is a paper instructing the bank to pay a specific amount from the person's account to the person in whose name the cheque has been issued. A) Cheque. B) Demand Deposit. C) Terms of Credit. D) None of the above. Show Answer Correct Answer: B) Demand Deposit. 39. Who issue the currency note in India? A) RBI. B) SBI. C) HDFC. D) None of the above. Show Answer Correct Answer: A) RBI. 40. SHGs help borrowers overcome the problem of lack of ..... A) Credit. B) Collateral. C) Terms of credit. D) Loan. Show Answer Correct Answer: B) Collateral. 41. Which of the following is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender? A) Money. B) Deposit. C) Collateral. D) Property. Show Answer Correct Answer: C) Collateral. 42. If Megha is taking loan of Rs 50 lakhs, which of the following can she keep as collateral instead of documents of the house?a. The plan of her houseb. A bicycle that she owns.c. She has few fixed deposits of Rs. 20, Rs 5lakhs and 15 lakhsd. A piece of land which is worth Rs 1 crore. A) A and c. B) C. C) D. D) B. Show Answer Correct Answer: C) D. 43. Which one is an example of Informal Source of Credit A) Banks. B) Cooperative Societies. C) Money Lender. D) All of these. Show Answer Correct Answer: C) Money Lender. 44. The modern currency is without any use of its own, then why is it accepted as a medium of exchange? A) Because it is convenient. B) It has digital and manual system. C) It can be used in foreign exchange. D) Is authorised by the government of the country. Show Answer Correct Answer: D) Is authorised by the government of the country. 45. Which is the central bank of India A) State Bank of India. B) Private Sector Banks. C) Reserve bank of India (RBI). D) Regional Rural Banks. Show Answer Correct Answer: C) Reserve bank of India (RBI). 46. A payment made by account payee cheque means- A) (a) anyone can present the cheque and get payment from the bank. B) (b) only drawee can deposit the cheque and get credit in his bank account. C) (c) the cheque can be given by the drawee to third party who can get credit in his account. D) None of the above. Show Answer Correct Answer: B) (b) only drawee can deposit the cheque and get credit in his bank account. 47. What is the main source of income for banks? A) Interest on loans. B) Interest on deposits. C) Difference between the interest charged on borrowers and depositors. D) None of these. Show Answer Correct Answer: C) Difference between the interest charged on borrowers and depositors. 48. Reserve bank of India grants loans to A) General public. B) Private Companies. C) Commercial Banks. D) All of these. Show Answer Correct Answer: C) Commercial Banks. 49. How much deposit is kept as cash by the banks? A) 25%. B) 20%. C) 30%. D) 15%. Show Answer Correct Answer: D) 15%. 50. Interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called the ..... A) Conditions of burrowing. B) Term deposits. C) Terms of credit. D) None of the above. Show Answer Correct Answer: C) Terms of credit. 51. A ..... is the apex institution of monetary system of a country. A) Central Bank. B) State Bank. C) Grame. D) None of the above. Show Answer Correct Answer: A) Central Bank. 52. Riks bank was established in the year A) 1694. B) 1674. C) 1668. D) 1913. Show Answer Correct Answer: C) 1668. 53. Besides banks, the other major source of cheap credit in rural areas A) Cooperative societies. B) Relatives. C) Friends. D) Money lenders. Show Answer Correct Answer: A) Cooperative societies. 54. The service sector includes activities such as: A) Agriculture, dairy, fishing and forestry. B) Making sugar, jaggery and bricks. C) Transport, communication and banking. D) None of the above. Show Answer Correct Answer: C) Transport, communication and banking. 55. What will be collateral for a car loan? A) Stamp on vehicle registration papers. B) Registration papers. C) Installments. D) Interest payment. Show Answer Correct Answer: A) Stamp on vehicle registration papers. 56. Organization which supervises the credit activities of lenders in the informal sector? A) No organisation. B) State government. C) Central government. D) Reserve bank of India. Show Answer Correct Answer: A) No organisation. 57. Which one of the following is not a formal source of credit? A) State Bank of India. B) Employers. C) Commercial Banks. D) Co-operatives. Show Answer Correct Answer: B) Employers. 58. 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. Show Answer Correct Answer: D) All of the above. 59. In modern Economy, Money is used as medium of exchange. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 60. ..... help borrowers overcome the problemof lack of collateral and also they are the building blocks of organization of the rural poor. A) Government. B) Co-operatives. C) SHGs. D) Banks. Show Answer Correct Answer: C) SHGs. Next →Related QuizzesEconomics QuizzesClass 10 QuizzesClass 10 Economics Chapter 3 Money And Credit Quiz 2Class 10 Economics Chapter 3 Money And Credit Quiz 3Class 10 Economics Chapter 3 Money And Credit Quiz 4Class 10 Economics Chapter 3 Money And Credit Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books