This quiz works best with JavaScript enabled. Home > Class 10 > 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 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Interest payment will be higher on a home loan on account of A) High tenure of loan. B) Lack of proper documentation. C) High risk of borrower profile. D) All of these. Show Answer Correct Answer: D) All of these. 2. ..... 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. Show Answer Correct Answer: A) 85 per cent. 3. Under Barter System the exchange of goods require ..... A) Double coincidence of wants. B) A good transport system. C) Advertising. D) Communication. Show Answer Correct Answer: A) Double coincidence of wants. 4. Why do banks ask for collateral? Choose the most appropriate or complete answer. A) Bank can sell if they need to raise money. B) It is a guarantee that borrower will pay on time. C) In case if the borrower will not pay back then the bank can sell the asset and recover its money. D) It is an RBI regulation that banks must ask for collateral. Show Answer Correct Answer: C) In case if the borrower will not pay back then the bank can sell the asset and recover its money. 5. A typical Self Help Group usually has A) 100-200 members. B) 50-100 members. C) Less than 10 members. D) 15-20 members. Show Answer Correct Answer: D) 15-20 members. 6. Rizwan is a shopkeeper. He wants to take a loan of Rs 5 lakhs to upgrade his shop. Why would you suggest him not to take loan from the local moneylender? A) Because the local money lender is not a good person. B) Because the moneylender will ask for collateral. C) Because the moneylender will charge the high-interest rate. D) None of these. Show Answer Correct Answer: C) Because the moneylender will charge the high-interest rate. 7. The total money in circulation with the public at any point of time is through A) Currency and demand deposits. B) Savings and current deposits. C) Both a) and b). D) None of the above. Show Answer Correct Answer: C) Both a) and b). 8. In monetary management broad money refers to A) M1 and M4. B) M1 and M3. C) M3 and M4. D) M2 and M3. Show Answer Correct Answer: C) M3 and M4. 9. Direct exchange of goods without the use of money is known as A) Debt kick. B) Barter System. C) Monetary System. D) None of the above. Show Answer Correct Answer: B) Barter System. 10. Money is based on A) Double coincidence of wants. B) Single coincidence of wants. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Double coincidence of wants. 11. Which one of the following statements is most appropriate regarding transaction made in money? A) It is the easiest way. B) It is safest way. C) It is the cheapest way. D) It promotes trade. Show Answer Correct Answer: A) It is the easiest way. 12. Why are demand deposits considered as money? A) Payments can be made by cheques instead of cash. B) Banks accept the deposits and also pay an interest rate on the deposits. C) The RBI of Indian issues currency notes on behalf of the Central Government. D) Demand deposits are closely linked to the working of the modern banking system. Show Answer Correct Answer: A) Payments can be made by cheques instead of cash. 13. Which one of the following is not a quantitative credit control measures A) Bank Rate Policy. B) Credit rationing. C) Open market operations. D) Varying Reserve Requirements. Show Answer Correct Answer: B) Credit rationing. 14. WHICH OF THE FOLLOWING IS THE CORRECT MEANING OF COLLATERAL A) SUM TOTAL BORROWED FROM BANKS. B) AMOUNT BORROWED FROM FRIENDS. C) ASSET OF BORROWER USED AS AGUARANTEE. D) AMOUNT INVESTED IN BUSSINESS. Show Answer Correct Answer: C) ASSET OF BORROWER USED AS AGUARANTEE. 15. ..... and ..... are the ancient forms of money A) Currency notes and deposits. B) Grains and cattle. C) Gold and silver coins. D) Cheques and deposits. Show Answer Correct Answer: B) Grains and cattle. 16. 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. Show Answer Correct Answer: D) Well off households and rich households. 17. Loans are also known as credit A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. 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. Show Answer Correct Answer: A) Traders. 19. Megha is taking a loan from the bank. She has to agree to certain terms of credit. Which of the following is not a term of credit that she has to agree? A) An interest rate of 10%. B) Documents of her new house have to be submitted to the bank. C) Salary slips. D) Location map of the place. Show Answer Correct Answer: D) Location map of the place. 20. Compared to the formal lenders, most of the informal lenders charge a much ..... interest on loans. A) Higher. B) Lesser. C) All the above. D) None of the above. Show Answer Correct Answer: A) Higher. 21. Which among the following banks issues currency notes on behalf of the Central Government in India? A) RBI. B) State Bank of India. C) Bank of India. D) Central Bank of India. Show Answer Correct Answer: A) RBI. 22. Which one 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) Deposits. Show Answer Correct Answer: C) Collateral. 23. Formal sector meets only about ..... of the total credit needs of the rural people in 2003. A) One third. B) One fourth. C) Half. D) Whole. Show Answer Correct Answer: C) Half. 24. Identify the formal source of credit: A) Cooperative societies. B) Moneylenders. C) Traders. D) Landlords. Show Answer Correct Answer: A) Cooperative societies. 25. A ..... is a paper instructing the bank to pay a specific amount from the person's account to the person in whose name it has been issued? A) Deposit slip. B) Withdrawal slip. C) ATM facility. D) Cheque. Show Answer Correct Answer: D) Cheque. ← PreviousNext →Related 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 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