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

Which one of the following options describes ‘Collateral’?

Asset as a guarantee for a loan

Double coincidence of wants

Trade in barter

Certain products for barter

2 / 15

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

Finance Minister of India

None

State Bank of India

Reserve Bank of India

3 / 15

How do banks earn income from deposits?

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

By paying a higher interest rate on deposits

By charging a fee for depositing money

By investing in stocks and shares

4 / 15

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

They help borrowers overcome the problem of lack of collateral.

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.

5 / 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 –

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

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

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

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

6 / 15

What are the main terms of credit?

Interest rate, mode of repayment, and time period

Interest rate, collateral, and documentation requirement

Collateral, documentation requirement, and mode of repayment

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

7 / 15

What is a "debt trap"?

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

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

8 / 15

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

By using the group's savings as collateral.

By providing loans at a higher rate of interest.

By guaranteeing loan repayment through group pressure.

By requiring collateral from borrowers.

9 / 15

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

Increased capacity of savings

Increased access to funds for starting businesses

Limited access to funds for starting businesses or making investments

Increased financial flexibility and convenience

10 / 15

What is the primary function of money?

Medium of exchange

Credit creation

Standard of deferred payments

All of the above

11 / 15

Also See: Acids, Bases and Salts Class 10 Important Questions and Answers

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

village moneylender

commercial bank

cooperative society

12 / 15

What are the two forms of modern currency?

Coins and credit cards

Paper notes and mobile wallets

Paper notes and coins

Gold and silver

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

14 / 15

What are demand deposits?

Deposits that can be withdrawn only after a fixed period

Deposits that earn a higher interest rate

Deposits that can be withdrawn on demand

Deposits that are used for loans

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 _____.

Collateral

Payment made

No payment

Future payment

Your score is

The average score is 70%

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Pos.	Name	Score	Duration	Points
1	Lakshya sharma	100 %	40 seconds	15
2	NEILNEEGRO	100 %	52 seconds	15
3	aaradhana	100 %	54 seconds	15
4	..	100 %	59 seconds	15
5	Ankush Deo Rajput	100 %	1 minutes 12 seconds	15
6	qwerty	100 %	1 minutes 13 seconds	15
7	Steve Harrington	100 %	1 minutes 25 seconds	15
8	NIGGA	100 %	1 minutes 27 seconds	15
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10	tutututututututututuututuututuuuututuututuutuuu	100 %	1 minutes 55 seconds	15
11	Srishti	100 %	1 minutes 56 seconds	15
12	IS	100 %	2 minutes 16 seconds	15
13	someone	100 %	2 minutes 41 seconds	15
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Also See: Most Expected Questions for Class 10 Science Half-Yearly Exams

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

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

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More Class 10 Social Science MCQ Quizzes

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