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 are the main terms of credit?

Interest rate, collateral, and documentation requirement

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

Interest rate, mode of repayment, and time period

Collateral, documentation requirement, and mode of repayment

2 / 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.

Mode of re-payment

Terms of credit

Deposit criteria

Interest on loan

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?

rich landowner

cooperative society

commercial bank

village moneylender

4 / 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 use fair means to get their money back

There is govt. bodies to supervise the informal sector

Cost of informal loans to the borrower is quite high

Money lenders ask for a reasonable rate of interest

5 / 15

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

Finance Minister of India

Reserve Bank of India

State Bank of India

None

6 / 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 becomes trapped in a cycle of debt that they are unable to escape from

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

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

8 / 15

Also See: Class 10 Agriculture MCQ Quiz – Test Your Knowledge

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

9 / 15

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

All of the above.

They help borrowers overcome the problem of lack of collateral.

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

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

10 / 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 –

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

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

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

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

11 / 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

12 / 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

13 / 15

What is the primary function of money?

Credit creation

Standard of deferred payments

All of the above

Medium of exchange

14 / 15

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

By using the group's savings as collateral.

By requiring collateral from borrowers.

By guaranteeing loan repayment through group pressure.

By providing loans at a higher rate of interest.

15 / 15

What are the two forms of modern currency?

Coins and credit cards

Gold and silver

Paper notes and mobile wallets

Paper notes and coins

Your score is

The average score is 68%

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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	Pranav	93 %	3 minutes 19 seconds	14
19	J	93 %	3 minutes 55 seconds	14
20	Guuuggttty	87 %	1 minutes 18 seconds	13
21	oooppp	87 %	1 minutes 24 seconds	13
22	Papi	87 %	2 minutes 30 seconds	13
23	fd	87 %	2 minutes 36 seconds	13
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27	Uytc	87 %	3 minutes 9 seconds	13
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32	prarthana	87 %	7 minutes 16 seconds	13
33	bbb	87 %	7 minutes 21 seconds	13
34	ahhhhhhhhhhhhhhhhhhhhhhhhhh	87 %	8 minutes 47 seconds	13
35	ghanasyam	87 %	27 minutes 32 seconds	13
36	Fyyugg	80 %	1 minutes 26 seconds	12
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56	Hshfo	73 %	1 minutes 22 seconds	11
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68	Pranav	73 %	4 minutes 7 seconds	11
69	Divyanjali	73 %	4 minutes 9 seconds	11
70	ria	73 %	4 minutes 18 seconds	11
71	Sana	73 %	4 minutes 18 seconds	11
72	aads	73 %	5 minutes 18 seconds	11
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76	Tanu	73 %	6 minutes 9 seconds	11
77	Harshita	73 %	6 minutes 46 seconds	11
78	vedika	73 %	6 minutes 53 seconds	11
79	Dolly	73 %	7 minutes 34 seconds	11
80	Vishwajit atnure	73 %	9 minutes 20 seconds	11
81	jagath	73 %	11 minutes 32 seconds	11
82	sakii	67 %	49 seconds	10
83	baba grup	67 %	56 seconds	10
84	naisha	67 %	2 minutes 25 seconds	10
85	DHRUV	67 %	2 minutes 43 seconds	10
86	poronesiAN PARRAPIO	67 %	2 minutes 49 seconds	10
87	sanvi ji	67 %	3 minutes 3 seconds	10
88	tanu	67 %	3 minutes 45 seconds	10
89	s	67 %	4 minutes 25 seconds	10
90	Er	67 %	4 minutes 29 seconds	10
91	Fgg	67 %	5 minutes 8 seconds	10
92	Steve Harrington	67 %	5 minutes 13 seconds	10
93	sreeram	67 %	6 minutes 45 seconds	10
94	Aryamaan	60 %	3 minutes 27 seconds	9
95	qwertyuiop[asdfghjklzxcvbnm	60 %	4 minutes 24 seconds	9
96	b	60 %	8 minutes 4 seconds	9
97	Rohit	60 %	11 minutes 10 seconds	9
98	Gh	60 %	12 minutes 42 seconds	9
99	lob	53 %	1 minutes 47 seconds	8
100	SWARIT	53 %	1 minutes 59 seconds	8
101	Ankush	53 %	2 minutes 44 seconds	8
102	sehar	53 %	3 minutes 55 seconds	8
103	....	53 %	8 minutes 54 seconds	8
104	riri	53 %	13 minutes 43 seconds	8
105	It's me	53 %	1 hours 3 minutes 5 seconds	8
106	g	53 %	1 hours 42 minutes 12 seconds	8
107	SAKII	47 %	58 seconds	7
108	Dipesh	47 %	2 minutes 18 seconds	7
109	pratheek	47 %	3 minutes 47 seconds	7
110	Meenu	47 %	4 minutes 2 seconds	7
111	Daksh Goyal	47 %	5 minutes 26 seconds	7
112	ansh	47 %	5 minutes 30 seconds	7
113	R	47 %	5 minutes 40 seconds	7
114	Manas vi	47 %	7 minutes 23 seconds	7
115	S	47 %	8 minutes 57 seconds	7
116	baba gruop karnal	40 %	59 seconds	6
117	Bf	40 %	1 minutes 28 seconds	6
118	gujjar123	40 %	1 minutes 39 seconds	6
119	Rtyg	40 %	1 minutes 41 seconds	6
120	Dad	40 %	3 minutes 19 seconds	6
121	Janvi	40 %	3 minutes 29 seconds	6
122	ap	40 %	3 minutes 47 seconds	6
123	Ff	40 %	4 minutes 2 seconds	6
124	Umra	40 %	10 minutes 50 seconds	6
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127	Kumail	33 %	5 minutes 51 seconds	5
128	baba	27 %	50 seconds	4
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130	dev	27 %	57 seconds	4
131	AFIA SHAIKH	27 %	1 minutes 18 seconds	4
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134	gujjar	13 %	44 seconds	2
135	😂😂 lol	13 %	1 minutes 2 seconds	2
136	gujjar	13 %	7 minutes 1 seconds	2
137	udit	7 %	57 seconds	1
138	MANU	0 %	18 minutes 57 seconds	0

Also See: CBSE Class 10 Science Sample Papers with Solutions - PDF Download

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?

Leaderboard – Top Scorers

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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