This quiz works best with JavaScript enabled. Home > Class 10 > Class 10 Economics Chapter 3 Money And Credit – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 10 Economics Chapter 3 Money And Credit Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Reserve Bank of India was established on A) 1'st April 1935. B) 1 st January 1949. C) 1st April 1949. D) 1st January 1935. Show Answer Correct Answer: A) 1'st April 1935. 2. 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. 3. Terms of credit is with respect to: A) Interest rate. B) Collateral. C) Documentation. D) All of these. Show Answer Correct Answer: D) All of these. 4. Which one is 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 authorized by commercial banks. D) It is authorized by the Government of the country. Show Answer Correct Answer: D) It is authorized by the Government of the country. 5. After ..... or ..... , if the SHG is regular in savings, it becomes eligible for availing loan from the bank. A) 3 years or 4 years. B) 5 years or 6 years. C) 6 months or 1 year. D) A year or two. Show Answer Correct Answer: D) A year or two. 6. 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. 7. 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. Show Answer Correct Answer: C) Self-Help Groups. 8. Which one of the following is a modern form of currency? A) Gold. B) Paper notes. C) Silver. D) Copper. Show Answer Correct Answer: B) Paper notes. 9. Banks offer higher rates of interest on A) Savings account. B) Recurring deposits. C) Current account. D) Fixed deposits. Show Answer Correct Answer: D) Fixed deposits. 10. 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) Money. B) Collateral. C) Paper notes, coins. D) Double coincidence. Show Answer Correct Answer: B) Collateral. 11. The Informal source of credit does not include which one of the following? A) Traders. B) Friends. C) Cooperative Societies. D) Money-lenders. Show Answer Correct Answer: C) Cooperative Societies. 12. 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. 13. 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. 14. 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. 15. Who issue the currency note in India? A) RBI. B) SBI. C) HDFC. D) None of the above. Show Answer Correct Answer: A) RBI. 16. SHGs help borrowers overcome the problem of lack of ..... A) Terms of credit. B) Collateral. C) Credit. D) Loan. Show Answer Correct Answer: B) Collateral. 17. 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) Property. B) Money. C) Collateral. D) Deposit. Show Answer Correct Answer: C) Collateral. 18. 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. 19. 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. 20. 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. 21. Which is the central bank of India A) Reserve bank of India (RBI). B) Regional Rural Banks. C) State Bank of India. D) Private Sector Banks. Show Answer Correct Answer: A) Reserve bank of India (RBI). 22. 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. 23. 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. 24. 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. 25. How much deposit is kept as cash by the banks? A) 15%. B) 20%. C) 25%. D) 30%. Show Answer Correct Answer: A) 15%. ← PreviousNext →Related QuizzesClass 10 Economics Chapter 3 Money And Credit Quiz 1Class 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 5Class 10 Economics Chapter 3 Money And Credit Quiz 6Class 10 Economics Chapter 3 Money And Credit Quiz 7Class 10 Economics Chapter 3 Money And Credit Quiz 8Class 10 Economics Chapter 3 Money And Credit Quiz 9Class 10 Economics Chapter 3 Money And Credit Quiz 10Class 10 Economics Chapter 3 Money And Credit Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books