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

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

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

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

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

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

2 / 15

Why is modern currency accepted as a medium of exchange?

Because it is accepted by international organizations

Because it is authorized by the government

Because it is backed by gold reserves

Because it is used by all countries

3 / 15

Most agricultural laborers like Mohan depend upon loans from the informal sector. Which of the following statements about this sector is correct –

Money lenders ask for a reasonable rate of interest

There is govt. bodies to supervise the informal sector

Money lenders use fair means to get their money back

Cost of informal loans to the borrower is quite high

4 / 15

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

By guaranteeing loan repayment through group pressure.

By providing loans at a higher rate of interest.

By requiring collateral from borrowers.

By using the group's savings as collateral.

5 / 15

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

Limited access to funds for starting businesses or making investments

Increased access to funds for starting businesses

Increased financial flexibility and convenience

Increased capacity of savings

6 / 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 _____.

No payment

Payment made

Future payment

Collateral

7 / 15

Mohan is an agricultural laborer. There are several months in a year when he has no work and needs credit to meet his daily expenses. He depends upon his employer, the landowner for credit who charges an interest rate of 5 percent per month. Mohan repays the money by working physically for the landowner on his farmland. Over the years his debt will –

Remain constant - as he is working for the employer but is repaying less

Be totally repaid - as he is repaying the debt in the form of physical labor

Reduce - as the amount equivalent to his salary is being counted as monthly repayment

Increase - because of increasing interest and non-payment of the monthly amount

8 / 15

Also See: Learn Like a Topper: Analyze the 2023 Class 10 Science Topper's Answer Sheet Strategy

What are demand deposits?

Deposits that earn a higher interest rate

Deposits that can be withdrawn on demand

Deposits that are used for loans

Deposits that can be withdrawn only after a fixed period

9 / 15

What is a "debt trap"?

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

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

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 assets and cannot manage them

10 / 15

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

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

They help borrowers overcome the problem of lack of collateral.

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

All of the above.

11 / 15

What is the primary function of money?

Medium of exchange

All of the above

Standard of deferred payments

Credit creation

12 / 15

Find the Incorrect option

With demand deposit payments can be made without cash

Demand deposits are a safe way of money transformation

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’?

Trade in barter

Asset as a guarantee for a loan

Double coincidence of wants

Certain products for barter

14 / 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?

Installments

Collateral

Principal Amount

Interest Rate

15 / 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?

Barter system of wants

None of the above

Incidence of wants

Double incidence of wants

Your score is

The average score is 68%

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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
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85	DHRUV	67 %	2 minutes 43 seconds	10
86	poronesiAN PARRAPIO	67 %	2 minutes 49 seconds	10
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89	s	67 %	4 minutes 25 seconds	10
90	Er	67 %	4 minutes 29 seconds	10
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92	Steve Harrington	67 %	5 minutes 13 seconds	10
93	sreeram	67 %	6 minutes 45 seconds	10
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100	SWARIT	53 %	1 minutes 59 seconds	8
101	Ankush	53 %	2 minutes 44 seconds	8
102	....	53 %	8 minutes 54 seconds	8
103	riri	53 %	13 minutes 43 seconds	8
104	It's me	53 %	1 hours 3 minutes 5 seconds	8
105	g	53 %	1 hours 42 minutes 12 seconds	8
106	SAKII	47 %	58 seconds	7
107	Dipesh	47 %	2 minutes 18 seconds	7
108	pratheek	47 %	3 minutes 47 seconds	7
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113	Manas vi	47 %	7 minutes 23 seconds	7
114	S	47 %	8 minutes 57 seconds	7
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136	udit	7 %	57 seconds	1
137	MANU	0 %	18 minutes 57 seconds	0

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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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