Money And Credit Class 10 MCQ Quiz – Test Your Knowledge

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Are you preparing for your CBSE Class 10 Social Science board exam? This MCQ quiz on "Money and Credit" will help you revise key concepts like forms of money, the role of credit, formal and informal sources of credit, and the impact of credit on the economy.

About the Quiz

Chapter Name: Money and Credit
Subject: Social Science (Economics)
Book: NCERT Class 10 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Quick revision for CBSE exams
✔ Based on NCERT textbook concepts
✔ Leaderboard to track top performers

Click Below to Start the Quiz!

Chapter 3 - Money and Credit

1 / 15

How do banks earn income from deposits?

By charging a fee for depositing money

By paying a higher interest rate on deposits

By charging a higher rate of interest on loans than what they offer on deposits

By investing in stocks and shares

2 / 15

Rohan has taken a loan of Rs.5 lakhs from the bank to purchase a house at a 12% rate of interest. He has to submit papers about the new house and salary records to the bank. What is this process called?

Interest Rate

Installments

Collateral

Principal Amount

3 / 15

Rehman is a poor agricultural labor and needs a loan for cultivation on his small piece of land.

Which of the following would DEFINITELY offer him a fair interest rate and flexible terms of credit?

cooperative society

rich landowner

village moneylender

commercial bank

4 / 15

Why is modern currency accepted as a medium of exchange?

Because it is used by all countries

Because it is backed by gold reserves

Because it is authorized by the government

Because it is accepted by international organizations

5 / 15

What is the primary function of money?

Standard of deferred payments

Medium of exchange

All of the above

Credit creation

6 / 15

A porter making pots, wants to exchange pots for wheat. Luckily, he meets a farmer who has wheat and is willing to exchange it for pots. What is this situation known as?

None of the above

Barter system of wants

Double incidence of wants

Incidence of wants

7 / 15

What is a "debt trap"?

A situation where an individual or organization has too many assets and cannot manage them

A situation where an individual or organization has too much money and cannot spend it

A situation where an individual or organization becomes trapped in a cycle of debt that they are unable to escape from

A situation where an individual or organization has too many loans and cannot repay them

8 / 15

What is the role of Self-Help Groups (SHGs) in rural society?

They provide loans to small-scale industries and rural households.

They provide a platform for discussing and acting on social issues.

All of the above.

They help borrowers overcome the problem of lack of collateral.

9 / 15

Also See: Social Science Class 10 Important Questions

In India, who issues the currency notes on behalf of the central government?

None

Finance Minister of India

State Bank of India

Reserve Bank of India

10 / 15

What is a potential negative economic implication of an economy without the concept of credit?

Increased access to funds for starting businesses

Increased capacity of savings

Increased financial flexibility and convenience

Limited access to funds for starting businesses or making investments

11 / 15

What is the main difference between formal and informal sources of credit?

Formal sources require collateral, while informal sources do not require collateral.

Formal sources are supervised by the RBI, while informal sources are not supervised by any organization.

Formal sources provide loans only to large-scale industries, while informal sources provide loans to small-scale industries and rural households.

Formal sources charge a higher rate of interest, while informal sources charge a lower rate of interest.

12 / 15

Find the Incorrect option

Demand deposits are a safe way of money transformation

With demand deposit payments can be made without cash

Demand deposit share the essential features of money

Demand deposit facility is like a cheque

13 / 15

Which one of the following options describes ‘Collateral’?

Certain products for barter

Asset as a guarantee for a loan

Double coincidence of wants

Trade in barter

14 / 15

How do SHGs help borrowers overcome the problem of lack of collateral?

By requiring collateral from borrowers.

By providing loans at a higher rate of interest.

By using the group's savings as collateral.

By guaranteeing loan repayment through group pressure.

15 / 15

Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods, or services in return for the promise of _____.

Future payment

No payment

Collateral

Payment made

Your score is

The average score is 68%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Ankush Deo Rajput	100 %	1 minutes 12 seconds	15
2	qwerty	100 %	1 minutes 13 seconds	15
3	Steve Harrington	100 %	1 minutes 25 seconds	15
4	NIGGA	100 %	1 minutes 27 seconds	15
5	tutututututututututuututuututuuuututuututuutuuu	100 %	1 minutes 55 seconds	15
6	someone	100 %	2 minutes 41 seconds	15
7	SARASWATI	100 %	3 minutes 44 seconds	15
8	Ullu	100 %	5 minutes	15
9	nn	100 %	5 minutes 19 seconds	15
10	Fff	93 %	1 minutes 6 seconds	14
11	pk	93 %	1 minutes 16 seconds	14
12	Sia	93 %	1 minutes 20 seconds	14
13	niggA	93 %	1 minutes 31 seconds	14
14	V	93 %	2 minutes 10 seconds	14
15	y	93 %	2 minutes 19 seconds	14
16	yiyiyyyyyyyo	93 %	2 minutes 39 seconds	14
17	Atharva Warkad	93 %	3 minutes 4 seconds	14
18	Ishika Bhatia	93 %	3 minutes 14 seconds	14
19	Pranav	93 %	3 minutes 19 seconds	14
20	J	93 %	3 minutes 55 seconds	14
21	Guuuggttty	87 %	1 minutes 18 seconds	13
22	oooppp	87 %	1 minutes 24 seconds	13
23	Papi	87 %	2 minutes 30 seconds	13
24	fd	87 %	2 minutes 36 seconds	13
25	Gu	87 %	2 minutes 47 seconds	13
26	rose	87 %	3 minutes	13
27	tanununun	87 %	3 minutes 2 seconds	13
28	Uytc	87 %	3 minutes 9 seconds	13
29	V	87 %	3 minutes 32 seconds	13
30	vaishnavi jayachandran	87 %	4 minutes 28 seconds	13
31	ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh	87 %	4 minutes 58 seconds	13
32	vd	87 %	5 minutes 55 seconds	13
33	prarthana	87 %	7 minutes 16 seconds	13
34	bbb	87 %	7 minutes 21 seconds	13
35	ahhhhhhhhhhhhhhhhhhhhhhhhhh	87 %	8 minutes 47 seconds	13
36	ghanasyam	87 %	27 minutes 32 seconds	13
37	Fyyugg	80 %	1 minutes 26 seconds	12
38	Tvisha	80 %	1 minutes 44 seconds	12
39	Agrawal	80 %	2 minutes 22 seconds	12
40	abc	80 %	2 minutes 55 seconds	12
41	gyhh	80 %	2 minutes 59 seconds	12
42	lucky	80 %	3 minutes 11 seconds	12
43	Deeptika	80 %	3 minutes 23 seconds	12
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45	EPSTEIN	80 %	3 minutes 38 seconds	12
46	Albi	80 %	3 minutes 40 seconds	12
47	ssssssssssss	80 %	3 minutes 45 seconds	12
48	Sia	80 %	4 minutes 10 seconds	12
49	arag	80 %	4 minutes 23 seconds	12
50	..	80 %	4 minutes 28 seconds	12
51	j	80 %	4 minutes 38 seconds	12
52	sagar	80 %	6 minutes 23 seconds	12
53	Amit	80 %	7 minutes 17 seconds	12
54	Pridba	80 %	8 minutes 3 seconds	12
55	Fatema	80 %	9 minutes 23 seconds	12
56	I am steve	80 %	9 minutes 24 seconds	12
57	Hshfo	73 %	1 minutes 22 seconds	11
58	ola	73 %	1 minutes 59 seconds	11
59	tyhj,	73 %	2 minutes 12 seconds	11
60	n	73 %	2 minutes 16 seconds	11
61	Iy	73 %	3 minutes 12 seconds	11
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63	vidya	73 %	3 minutes 22 seconds	11
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65	Kum s il	73 %	3 minutes 33 seconds	11
66	rishika	73 %	3 minutes 55 seconds	11
67	U	73 %	4 minutes 4 seconds	11
68	nigga	73 %	4 minutes 4 seconds	11
69	Pranav	73 %	4 minutes 7 seconds	11
70	Divyanjali	73 %	4 minutes 9 seconds	11
71	ria	73 %	4 minutes 18 seconds	11
72	Sana	73 %	4 minutes 18 seconds	11
73	aads	73 %	5 minutes 18 seconds	11
74	naitik	73 %	5 minutes 55 seconds	11
75	ANIL	73 %	5 minutes 55 seconds	11
76	Ishan	73 %	6 minutes 7 seconds	11
77	Tanu	73 %	6 minutes 9 seconds	11
78	Harshita	73 %	6 minutes 46 seconds	11
79	vedika	73 %	6 minutes 53 seconds	11
80	Dolly	73 %	7 minutes 34 seconds	11
81	Vishwajit atnure	73 %	9 minutes 20 seconds	11
82	jagath	73 %	11 minutes 32 seconds	11
83	sakii	67 %	49 seconds	10
84	baba grup	67 %	56 seconds	10
85	naisha	67 %	2 minutes 25 seconds	10
86	DHRUV	67 %	2 minutes 43 seconds	10
87	poronesiAN PARRAPIO	67 %	2 minutes 49 seconds	10
88	sanvi ji	67 %	3 minutes 3 seconds	10
89	tanu	67 %	3 minutes 45 seconds	10
90	s	67 %	4 minutes 25 seconds	10
91	Er	67 %	4 minutes 29 seconds	10
92	Fgg	67 %	5 minutes 8 seconds	10
93	Steve Harrington	67 %	5 minutes 13 seconds	10
94	sreeram	67 %	6 minutes 45 seconds	10
95	Aryamaan	60 %	3 minutes 27 seconds	9
96	qwertyuiop[asdfghjklzxcvbnm	60 %	4 minutes 24 seconds	9
97	b	60 %	8 minutes 4 seconds	9
98	Rohit	60 %	11 minutes 10 seconds	9
99	Gh	60 %	12 minutes 42 seconds	9
100	lob	53 %	1 minutes 47 seconds	8
101	SWARIT	53 %	1 minutes 59 seconds	8
102	Ankush	53 %	2 minutes 44 seconds	8
103	sehar	53 %	3 minutes 55 seconds	8
104	....	53 %	8 minutes 54 seconds	8
105	riri	53 %	13 minutes 43 seconds	8
106	It's me	53 %	1 hours 3 minutes 5 seconds	8
107	g	53 %	1 hours 42 minutes 12 seconds	8
108	SAKII	47 %	58 seconds	7
109	Dipesh	47 %	2 minutes 18 seconds	7
110	pratheek	47 %	3 minutes 47 seconds	7
111	Meenu	47 %	4 minutes 2 seconds	7
112	Daksh Goyal	47 %	5 minutes 26 seconds	7
113	ansh	47 %	5 minutes 30 seconds	7
114	R	47 %	5 minutes 40 seconds	7
115	Manas vi	47 %	7 minutes 23 seconds	7
116	S	47 %	8 minutes 57 seconds	7
117	baba gruop karnal	40 %	59 seconds	6
118	Bf	40 %	1 minutes 28 seconds	6
119	gujjar123	40 %	1 minutes 39 seconds	6
120	Rtyg	40 %	1 minutes 41 seconds	6
121	Dad	40 %	3 minutes 19 seconds	6
122	Janvi	40 %	3 minutes 29 seconds	6
123	ap	40 %	3 minutes 47 seconds	6
124	Ff	40 %	4 minutes 2 seconds	6
125	Umra	40 %	10 minutes 50 seconds	6
126	Hcgkdi	40 %	53 minutes 50 seconds	6
127	Momo	33 %	3 minutes 20 seconds	5
128	Kumail	33 %	5 minutes 51 seconds	5
129	baba	27 %	50 seconds	4
130	baba and musa grup	27 %	51 seconds	4
131	dev	27 %	57 seconds	4
132	AFIA SHAIKH	27 %	1 minutes 18 seconds	4
133	MANOJ	20 %	1 minutes 27 seconds	3
134	ee	20 %	3 minutes 43 seconds	3
135	gujjar	13 %	44 seconds	2
136	😂😂 lol	13 %	1 minutes 2 seconds	2
137	gujjar	13 %	7 minutes 1 seconds	2
138	udit	7 %	57 seconds	1
139	MANU	0 %	18 minutes 57 seconds	0

Also See: From the Diary of Anne Frank Class 10 MCQ Quiz – Test Your Knowledge!

Key Topics Covered in the Quiz

✔ Functions of Money
✔ Types of Credit – Formal & Informal
✔ Role of Banks & Self Help Groups (SHGs)
✔ Impact of Credit on Borrowers
✔ Collateral and Terms of Credit

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Money and Credit Class 10 MCQ Quiz – Test Your Knowledge

About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

More Class 10 Social Science MCQ Quizzes

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 10 Social Science MCQ Quizzes

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