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

Why is modern currency accepted as a medium of exchange?

Because it is accepted by international organizations

Because it is backed by gold reserves

Because it is authorized by the government

Because it is used by all countries

2 / 15

How do banks earn income from deposits?

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

By charging a fee for depositing money

3 / 15

Which one of the following options describes ‘Collateral’?

Double coincidence of wants

Certain products for barter

Trade in barter

Asset as a guarantee for a loan

4 / 15

What are the main terms of credit?

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

Interest rate, collateral, and documentation requirement

Interest rate, mode of repayment, and time period

Collateral, documentation requirement, and mode of repayment

5 / 15

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

Members

LIC

Bank

Government organization

6 / 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

village moneylender

rich landowner

commercial bank

7 / 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

Money lenders ask for a reasonable rate of interest

There is govt. bodies to supervise the informal sector

Cost of informal loans to the borrower is quite high

8 / 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

Interest Rate

Collateral

Principal Amount

9 / 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

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

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

10 / 15

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

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

Increased capacity of savings

Increased financial flexibility and convenience

Increased access to funds for starting businesses

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 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.

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

12 / 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.

13 / 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

Incidence of wants

Double incidence of wants

Barter system of wants

14 / 15

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

Finance Minister of India

None

Reserve Bank of India

State Bank of India

15 / 15

What is the primary function of money?

All of the above

Medium of exchange

Standard of deferred payments

Credit creation

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
9	PARKAVI	100 %	1 minutes 48 seconds	15
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
14	Mrinalini Das	100 %	2 minutes 43 seconds	15
15	jjjj	100 %	3 minutes 5 seconds	15
16	C	100 %	3 minutes 6 seconds	15
17	SARASWATI	100 %	3 minutes 44 seconds	15
18	Pranjal Patil	100 %	3 minutes 49 seconds	15
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177	qwertyuiop[asdfghjklzxcvbnm	60 %	4 minutes 24 seconds	9
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Also See: Fire and Ice MCQs – Class 10 English First Flight Poem Quiz

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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Why Take This Quiz?

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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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