This quiz works best with JavaScript enabled. Home > Cbse > Class 10 > Economics > Money And Credit > Class 10 Economics Chapter 3 Money And Credit – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 10 Economics Chapter 3 Money And Credit Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements related to currency is wrong? A) Currency has no value on its own. B) Reserve Bank of India is authorized to print currency in our country. C) No individual can refuse to accept payment made in rupees. D) It is legal to print currency on our own. Show Answer Correct Answer: D) It is legal to print currency on our own. 2. What came after grains and cattle as a medium of exchange in India? A) Currency notes. B) Metallic coins-gold, silver, copper. C) Barter System. D) Value for land. Show Answer Correct Answer: B) Metallic coins-gold, silver, copper. 3. An asset that the borrowers own, and use this as a guarantee to the lender, until the loan is repaid. A) Security. B) Collateral. C) Property. D) All of these. Show Answer Correct Answer: B) Collateral. 4. WHICH OF THE FOLLOWING IS THE FORMAL SOURCE OF CREDIT A) TRADERS. B) COOPERATIVE SOCIETIES. C) MONEYLENDERS. D) FRIENDS AND RELATIVES. Show Answer Correct Answer: A) TRADERS. 5. Modern forms of money does not include A) Gold. B) Papernotes. C) Coins. D) Demand Deposits. Show Answer Correct Answer: A) Gold. 6. Analyze the information given below, consideringone of the following correct options:Megha has taken a loan of ' 6 lakhs from the bank to purchase a house. The loan is to be repaid in 12 years in monthly installments. Megha had to submit to the bank, documents showing her employment records and salary before the bank agreed to give her the loan. A) Interest on loan. B) Formal source of loan. C) Informal source of loan. D) None of the above. Show Answer Correct Answer: B) Formal source of loan. 7. The ratio of their deposits which the banks are required to keep with RBI is called A) Legal Reserve Ratio. B) Fixed deposits. C) Statutory Liquidity ratio. D) Cash Reserve Ratio. Show Answer Correct Answer: D) Cash Reserve Ratio. 8. A financial institution which accepts deposits from public and provide loans to them. A) Share Market. B) Insurance Company. C) Banks. D) All of these. Show Answer Correct Answer: C) Banks. 9. Find the incorrect option from the following: A) Poor households still depend on informal sources of credit. B) RBI supervises the functioning of informal sources of loans. C) Banks are not present everywhere in the rural areas. D) RBI monitors the banks is actually maintaining cash balance. Show Answer Correct Answer: B) RBI supervises the functioning of informal sources of loans. 10. In a barter system: A) Goods are exchanged for foreign currency. B) Goods are exchanged on credit. C) Goods are exchanged without the use of money. D) Goods are exchanged for money. Show Answer Correct Answer: C) Goods are exchanged without the use of money. 11. ..... , the founder of Grameen Bank, and recipient of 2006 Nobel Prize for Peace A) Professor Muhammad wealth. B) Professor Muhammad Yunus. C) Professor Muhammad Yusuf. D) None of the above. Show Answer Correct Answer: B) Professor Muhammad Yunus. 12. ..... implies the direct exchange of goods against goods without the use of money. A) Money sytem. B) Credit system. C) Barter system. D) None of these. Show Answer Correct Answer: C) Barter system. 13. Which one the following measure Of RBI increases the credit creation of banks A) Increase in the cash reserve ratio. B) Increase in the margin against security for lending. C) Decrease in the bank rate. D) Increase in the Statutory Liquidity Ratio. Show Answer Correct Answer: C) Decrease in the bank rate. 14. Why do lenders ask for collateral while lending? A) For Security. B) For Savings. C) For distribution. D) None of the above. Show Answer Correct Answer: A) For Security. 15. Since money acts as an intermediate in the exchange process, it is called ..... A) Medium of trade. B) Medium of Business. C) Medium of transaction. D) Medium of Exchange. Show Answer Correct Answer: D) Medium of Exchange. 16. Modern forms of money includes: A) Silver coins. B) Paper notes. C) Copper coins. D) Gold coins. Show Answer Correct Answer: B) Paper notes. 17. ..... are the building blocks of organisation of the rural poor A) SHGs. B) Formal sources of credit. C) Banks. D) Cooperative societies. Show Answer Correct Answer: A) SHGs. 18. After a year or two if the SHG is regular in savings, it becomes eligible for availing loan from A) Money lenders. B) Cooperative societies. C) Bank. D) Traders. Show Answer Correct Answer: C) Bank. 19. ..... is an asset that the borrower owns (such as land, building, vehicle, livestock's, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. A) Interest. B) Collateral. C) Documentation. D) None of the above. Show Answer Correct Answer: B) Collateral. 20. Members of a cooperative pool their resources for cooperation in certain areas A) Correct. B) Incorrect. C) All the above. D) None of the above. Show Answer Correct Answer: A) Correct. 21. Loan borrowed from friends is a A) Formal Loan. B) Informal Loan. C) All the above. D) None of the above. Show Answer Correct Answer: B) Informal Loan. 22. Which of the following is not an informal source of credit? A) Money lender. B) Traders. C) Commercial banks. D) Relatives. Show Answer Correct Answer: C) Commercial banks. 23. A paper instructing the bank to pay a specific amount from the person's account to the person in whose name the paper has been made is called a ..... A) Cheque. B) Lender. C) Borrower. D) None of the above. Show Answer Correct Answer: A) Cheque. 24. Both parties have to agree to sell and buy each other commodities it is known as A) Double coincidence of wants. B) Grame. C) All the above. D) None of the above. Show Answer Correct Answer: A) Double coincidence of wants. 25. What percentage of deposits are kept as cash by the commercial banks in India? A) 10%. B) 20%. C) 15%. D) 25%. Show Answer Correct Answer: C) 15%. 26. Banks in India these days hold about ..... % of there deposits as cash A) 15%. B) 16%. C) All the above. D) None of the above. Show Answer Correct Answer: A) 15%. 27. Professor Muhammad Yunus is the founder of which one of the following banks? A) Cooperative Bank. B) Commercial Bank. C) Grame. D) Land Development Bank. Show Answer Correct Answer: C) Grame. 28. Banks do not give loans to: A) Small farmers. B) Marginal farmers. C) Small Industries. D) People without proper collateral and documents. Show Answer Correct Answer: D) People without proper collateral and documents. 29. ..... plays a vital and positive role in helping to increase production. A) Credit. B) Cooperatives. C) Banks. D) None of the above. Show Answer Correct Answer: A) Credit. 30. Self Help Groups has its orgin from A) Pakistan. B) India. C) Srilanka. D) Bangladesh. Show Answer Correct Answer: D) Bangladesh. 31. Which one of the following is the appropriate meaning of collateral? A) It is an asset of the borrower used as guarantee to a lender. B) The amount invested in a business. C) It is the sum total of money borrowed from banks. D) The amount borrowed from friends. Show Answer Correct Answer: A) It is an asset of the borrower used as guarantee to a lender. 32. The various types of loans can be conveniently grouped as ..... and ..... loans A) Formal, public. B) Formal, informal. C) Public, private. D) None of the above. Show Answer Correct Answer: B) Formal, informal. 33. What do the banks do with the deposits which I they accept from the customers? A) Banks use a major portion of deposits to extend loans. B) Banks use these deposits for charitable activities. C) Banks use deposits to give bonus to their employees. D) Banks use deposits to set up more branches in the country. Show Answer Correct Answer: A) Banks use a major portion of deposits to extend loans. 34. The oldest existing central bank "Riks bank" is situated in A) Spain. B) France. C) Sweden. D) Germany. Show Answer Correct Answer: C) Sweden. 35. Which authority regulate and overlook the credit sysetm and economic activites in India A) CBI. B) Nsso nsso. C) Finance Minister. D) RBI. Show Answer Correct Answer: D) RBI. 36. Who issues one rupee note in the country? A) Ministry of commerce and industries. B) Reserve bank of India. C) Ministry of finance. D) National stock exchange. Show Answer Correct Answer: C) Ministry of finance. 37. Which one of the following agencies issues currency notes above one Rupees in India? A) Reserve Bank of India. B) State Bank of India. C) World Bank. D) Ministry of Finance. Show Answer Correct Answer: A) Reserve Bank of India. 38. Deposits in the bank accounts can be withdrawn on demand, therefore these deposits are called A) Returnable deposits. B) Acceptable Deposits. C) Demand deposits. D) None of the above. Show Answer Correct Answer: C) Demand deposits. 39. The currency notes on behalf of the Central Government are issued by whom? A) State Bank of India. B) Punjab National Bank. C) Reserve Bank of India. D) Central Bank of India. Show Answer Correct Answer: C) Reserve Bank of India. 40. Akash is a college lecturer and wants to take a loan for about Rs 10 lakhs for buying a car. Where do you think he should take a loan? A) Money lender. B) Cooperatives. C) Banks. D) Friends. Show Answer Correct Answer: C) Banks. 41. A demand deposit is the ..... A) Interest paid on a deposit. B) Amount you can take as a loan. C) Facility to withdraw money at any time. D) Facility to open a bank account on demand. Show Answer Correct Answer: C) Facility to withdraw money at any time. 42. Banks accept the deposits and also pay an amount as ..... on the deposits. A) Profit. B) Interest. C) Divident. D) None of the above. Show Answer Correct Answer: B) Interest. 43. 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) World Bank. D) State Bank of India. Show Answer Correct Answer: B) Reserve Bank of India. 44. The modern currency is without any use of its own A) Correct. B) Incorrect. C) All the above. D) None of the above. Show Answer Correct Answer: A) Correct. 45. In which country is Grameen bank meeting the needs of 6 million poor people? A) 3.Bangladesh. B) 2.Sri Lanka. C) 4.Nepal. D) 1.Bhutan. Show Answer Correct Answer: A) 3.Bangladesh. 46. Poor people gets their loan mostly from A) Formal. B) Informal. C) All the above. D) None of the above. Show Answer Correct Answer: B) Informal. 47. Currency (coins and notes) is a ..... which cannot be refused in payment for transactions. A) Legal tender. B) Illegal tender. C) All the above. D) None of the above. Show Answer Correct Answer: A) Legal tender. 48. What is the form of money in medieval period? A) Cowries. B) Paper Notes. C) Metallic Coins. D) Barter System. Show Answer Correct Answer: C) Metallic Coins. 49. The central Bank of India is A) State Bank of India. B) State Bank of Mysore. C) Indian overseas Bank. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 50. The functioning of the formal source of credit is supervised by: A) State Bank of India. B) Businessman. C) Finance Ministry. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 51. ..... and ..... credit is crucial for the country's development A) Accessible and affordable. B) Timely and feasible. C) Less and high amount of. D) Cheap and affordable. Show Answer Correct Answer: D) Cheap and affordable. 52. Loan borrowed from Muthoot FinCorp is a A) Formal Loan. B) Informal Loan. C) All the above. D) None of the above. Show Answer Correct Answer: A) Formal Loan. 53. Which one of the following is not a function of RBI A) Monopoly of note issue. B) Promotion of Banking Habits. C) Minting of Coins. D) Controller of credit. Show Answer Correct Answer: C) Minting of Coins. 54. For the purposes of monetary management, M3 and M4 are referred to as A) Narrow money. B) Commodity money. C) Representative money. D) Broad money. Show Answer Correct Answer: D) Broad money. 55. Who issues the currency notes in India A) Securities and exchange board of india. B) Reserve bank of india. C) All nationalised banks. D) Any individual organisation. Show Answer Correct Answer: B) Reserve bank of india. 56. In India, the ..... of India issues currency notes on behalf of the central government A) The Central Bank of India. B) The Reserve Bank of India. C) The World Bank. D) The Federal Bank of India. Show Answer Correct Answer: B) The Reserve Bank of India. 57. Formal sources of credit do not include A) Coopratives. B) Banks. C) Non governmental organisations. D) Only 1&2. Show Answer Correct Answer: C) Non governmental organisations. 58. No individual or organisation is allowed to issue currency A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 59. Money can be best described as A) Medium of exchange. B) Payment through cheque. C) Medium of transaction. D) Deposit in Banks. Show Answer Correct Answer: A) Medium of exchange. 60. Who has power to sign One rupees paper note in India? A) Governer of RBI. B) Finance Minister. C) President. D) Finance Secretary. Show Answer Correct Answer: D) Finance Secretary. ← PreviousNext →Related QuizzesEconomics QuizzesClass 10 QuizzesClass 10 Economics Chapter 3 Money And Credit Quiz 1Class 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 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books