This quiz works best with JavaScript enabled. Home > Class 10 > Class 10 Economics Chapter 3 Money And Credit – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 10 Economics Chapter 3 Money And Credit Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... 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. 2. Which one the following measure Of RBI increases the credit creation of banks A) Increase in the cash reserve ratio. B) Decrease in the bank rate. C) Increase in the margin against security for lending. D) Increase in the Statutory Liquidity Ratio. Show Answer Correct Answer: B) Decrease in the bank rate. 3. 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. 4. Since money acts as an intermediate in the exchange process, it is called ..... A) Medium of trade. B) Medium of Exchange. C) Medium of Business. D) Medium of transaction. Show Answer Correct Answer: B) Medium of Exchange. 5. Modern forms of money includes: A) Paper notes. B) Gold coins. C) Silver coins. D) Copper coins. Show Answer Correct Answer: A) Paper notes. 6. ..... are the building blocks of organisation of the rural poor A) Banks. B) Cooperative societies. C) SHGs. D) Formal sources of credit. Show Answer Correct Answer: C) SHGs. 7. Which of the following is the main informal source of credit for rural households in India? A) Friends. B) Relatives. C) Landlords. D) Moneylenders. Show Answer Correct Answer: D) Moneylenders. 8. After a year or two if the SHG is regular in savings, it becomes eligible for availing loan from A) Cooperative societies. B) Money lenders. C) Bank. D) Traders. Show Answer Correct Answer: C) Bank. 9. ..... 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. 10. 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. 11. 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. 12. Which of the following is not an informal source of credit? A) Money lender. B) Relatives. C) Commercial banks. D) Traders. Show Answer Correct Answer: C) Commercial banks. 13. 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. 14. 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. 15. What percentage of deposits are kept as cash by the commercial banks in India? A) 25%. B) 20%. C) 15%. D) 10%. Show Answer Correct Answer: C) 15%. 16. Which one of the following is a formal source of credit? A) Traders. B) Cooperative societies. C) Moneylenders. D) Friends and relatives. Show Answer Correct Answer: B) Cooperative societies. 17. 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%. 18. 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. 19. 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. 20. Compare to a formal lender, most of the informal lenders charge a much ..... interest on loans A) Lower. B) Constant. C) Higher. D) None of the above. Show Answer Correct Answer: C) Higher. 21. ..... 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. 22. Self Help Groups has its orgin from A) India. B) Bangladesh. C) Pakistan. D) Srilanka. Show Answer Correct Answer: B) Bangladesh. 23. Which one of the following is the appropriate meaning of collateral? A) It is the sum total of money borrowed from banks. B) The amount borrowed from friends. C) It is an asset of the borrower used as guarantee to a lender. D) The amount invested in a business. Show Answer Correct Answer: C) It is an asset of the borrower used as guarantee to a lender. 24. 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. 25. What do the banks do with the deposits which I they accept from the customers? A) Banks use these deposits for charitable activities. B) Banks use a major portion of deposits to extend loans. 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: B) Banks use a major portion of deposits to extend loans. ← 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 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 10Class 10 Economics Chapter 3 Money And Credit Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books