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

In SHGs most of the decisions regarding savings and loan activities are taken by _____.

LIC

Government organization

Bank

Members

2 / 15

How do banks earn income from deposits?

By charging a fee for depositing money

By investing in stocks and shares

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

By paying a higher interest rate on deposits

3 / 15

What are the two forms of modern currency?

Gold and silver

Paper notes and mobile wallets

Coins and credit cards

Paper notes and coins

4 / 15

Rita has taken a loan of Rs.7 lakhs from the bank to purchase a car. The annual interest rate on the loan is 14.5 percent and the loan is to be repaid in 3 years in monthly installments. The bank retained the papers of the new car as collateral, which will be returned to Rita only when she repays the entire loan with interest.

Analyze the loan information given above, considering one of the following correct options.

Terms of credit

Deposit criteria

Interest on loan

Mode of re-payment

5 / 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 has too many assets and cannot manage them

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

6 / 15

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

Reserve Bank of India

State Bank of India

None

Finance Minister of India

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

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

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

8 / 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

commercial bank

village moneylender

9 / 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 _____.

Also See: Agriculture Class 10 Notes: Learn from the Best

Payment made

No payment

Collateral

Future payment

10 / 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

Collateral

Installments

Principal Amount

11 / 15

What are the main terms of credit?

Interest rate, collateral, and documentation requirement

Interest rate, collateral, documentation requirement, mode of repayment, and time period

Collateral, documentation requirement, and mode of repayment

Interest rate, mode of repayment, and time period

12 / 15

What are demand deposits?

Deposits that can be withdrawn only after a fixed period

Deposits that can be withdrawn on demand

Deposits that are used for loans

Deposits that earn a higher interest rate

13 / 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

Money lenders use fair means to get their money back

Cost of informal loans to the borrower is quite high

There is govt. bodies to supervise the informal sector

14 / 15

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

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

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

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

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

15 / 15

Find the Incorrect option

Demand deposit facility is like a cheque

Demand deposit share the essential features of money

With demand deposit payments can be made without cash

Demand deposits are a safe way of money transformation

Your score is

The average score is 69%

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Pos.	Name	Score	Duration	Points
1	NEILNEEGRO	100 %	52 seconds	15
2	aaradhana	100 %	54 seconds	15
3	..	100 %	59 seconds	15
4	Ankush Deo Rajput	100 %	1 minutes 12 seconds	15
5	qwerty	100 %	1 minutes 13 seconds	15
6	Steve Harrington	100 %	1 minutes 25 seconds	15
7	NIGGA	100 %	1 minutes 27 seconds	15
8	PARKAVI	100 %	1 minutes 48 seconds	15
9	tutututututututututuututuututuuuututuututuutuuu	100 %	1 minutes 55 seconds	15
10	IS	100 %	2 minutes 16 seconds	15
11	someone	100 %	2 minutes 41 seconds	15
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15	Fff	93 %	1 minutes 6 seconds	14
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118	sakii	67 %	49 seconds	10
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177	Kumail	33 %	5 minutes 51 seconds	5
178	name	33 %	58 minutes 2 seconds	5
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181	dev	27 %	57 seconds	4
182	AFIA SHAIKH	27 %	1 minutes 18 seconds	4
183	ASUPALLY SAMITHA REDDY	27 %	2 minutes 42 seconds	4
184	deepthi	27 %	12 minutes 36 seconds	4
185	Sk Safiyah Parvin	20 %	41 seconds	3
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191	udit	7 %	57 seconds	1
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193	MANU	0 %	18 minutes 57 seconds	0

Also See: Class 10 Manufacturing Industries 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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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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