This quiz works best with JavaScript enabled. Home > Class 10 > Class 10 Economics Chapter 3 Money And Credit – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 10 Economics Chapter 3 Money And Credit Quiz 6 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Modern forms of money include currency ..... A) Gold and digital numbers. B) Paper notes and coins. C) Cowrie and cattle. D) None of the above. Show Answer Correct Answer: B) Paper notes and coins. 2. What do banks do with the deposit which they accept from customer? A) Banks used these deposits for charitable activities. B) 2.Banks used major portion of deposits to extend loans. C) 3.Banks use these deposits to give bonus to their employees. D) 4.Banks use deposits to set up more branches in the country. Show Answer Correct Answer: B) 2.Banks used major portion of deposits to extend loans. 3. Which one of the following is the new way of providing loans to the rural poor? A) Co-operative societies. B) Traders. C) Relatives and friends. D) SHG's. Show Answer Correct Answer: D) SHG's. 4. The legal tender of money in Japan is called as A) Yuan. B) Dollar. C) Euro. D) Yen. Show Answer Correct Answer: D) Yen. 5. Which body (authority) supervises the functioning of formal sources of loans? A) Finance Ministry. B) Head Office of each Bank. C) Reserve Bank. D) Cooperative Societies. Show Answer Correct Answer: C) Reserve Bank. 6. Goods are directly exchanged without the use of money in this system. A) Cooperative system. B) Bank system. C) Barter system. D) Pascal system. Show Answer Correct Answer: C) Barter system. 7. Which one of the following measure that the RBI takes to control credit when all other methods prove ineffective? A) Direct Action. B) Moral Suasion. C) Ceiling on credit. D) Change in lending margins. Show Answer Correct Answer: A) Direct Action. 8. Barter system is a exchange of A) Goods for goods. B) Goods for money. C) Goods for service. D) Service for service. Show Answer Correct Answer: A) Goods for goods. 9. Who issues currency notes on behalf of the Central Government of India? A) RBI. B) SBI. C) CBI. D) None of the above. Show Answer Correct Answer: A) RBI. 10. People also have the provision to withdraw the money as and when they require the deposits in the bank accounts to be withdrawn, what are these deposits called? A) Fixed Deposits. B) Savings. C) Demand Deposits. D) Demand Drafts. Show Answer Correct Answer: C) Demand Deposits. 11. RBI do not have the monopoly of issuing A) Rs 2. B) Rs 1. C) Rs 5. D) Rs 2000. Show Answer Correct Answer: B) Rs 1. 12. By mobilizing the savings of the public and make these available for investors, thereby banks help in the process of A) Fixed deposit. B) Demand. C) Capital formation. D) Higher rate of intrest. Show Answer Correct Answer: C) Capital formation. 13. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called ..... A) Fixed deposits. B) Demand deposits. C) Bonds. D) None of the above. Show Answer Correct Answer: B) Demand deposits. 14. In a SHG, most of the decisions regarding loan activities are taken by: A) Banks. B) Members. C) Non-government organisation. D) Cooperative. Show Answer Correct Answer: B) Members. 15. Money-lenders usually demand a 'security' from the borrower. What is the formal word used for the 'security', such as land, vehicle, livestock, building, etc.? A) Deposit. B) Collateral. C) Credit. D) Guarantee. Show Answer Correct Answer: B) Collateral. 16. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 17. How do banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers)? A) Mutual funds dividend. B) Share. C) Loans. D) Deposits. Show Answer Correct Answer: C) Loans. 18. Money A) Eliminates double-coincidence of wants. B) Acts as a common measure of value. C) Acts as a standard of deferred payments. D) All the above. Show Answer Correct Answer: D) All the above. 19. The rate at which RBI lends fund to banks is A) Cash Reserve Ratio. B) Statutory Liquidity Ratio. C) Bank Rate. D) Credit rationing. Show Answer Correct Answer: C) Bank Rate. 20. What prevents the poor from getting bank credit? A) Absence of collateral. B) Documentation procedure. C) High rate of interest. D) None of these. Show Answer Correct Answer: A) Absence of collateral. 21. ..... is responsible for the repayment of the loans. A) Secretary. B) Treasurer. C) Group members. D) Group leader. Show Answer Correct Answer: C) Group members. 22. Interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called ..... A) Terms of Credit. B) Terms of Collateral. C) Terms of Documents. D) None of the above. Show Answer Correct Answer: A) Terms of Credit. 23. Which of the following is easy to get? A) Formal Loan. B) Informal Loan. C) All the above. D) None of the above. Show Answer Correct Answer: B) Informal Loan. 24. When a person wants to sell exactly what the other person wants to buy. This situation is known as A) Barter System. B) Double coincidence of wants. C) Trading. D) None of these. Show Answer Correct Answer: B) Double coincidence of wants. 25. Currency is issued in India by: A) Commercial bank. B) Regional rural bank. C) Nationalised bank. D) Reserve bank of India. Show Answer Correct Answer: D) Reserve bank of India. ← 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 4Class 10 Economics Chapter 3 Money And Credit Quiz 5Class 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