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

Increased financial flexibility and convenience

Increased capacity of savings

Limited access to funds for starting businesses or making investments

Increased access to funds for starting businesses

2 / 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

Double incidence of wants

Incidence of wants

3 / 15

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

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

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

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

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

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

Mode of re-payment

Interest on loan

Deposit criteria

5 / 15

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

Also See: Master Subject-Verb Agreement (Concord) Grammar for Class 10 CBSE

By using the group's savings as collateral.

By providing loans at a higher rate of interest.

By requiring collateral from borrowers.

By guaranteeing loan repayment through group pressure.

6 / 15

What is the primary function of money?

Medium of exchange

All of the above

Standard of deferred payments

Credit creation

7 / 15

Find the Incorrect option

Demand deposit facility is like a cheque

With demand deposit payments can be made without cash

Demand deposit share the essential features of money

Demand deposits are a safe way of money transformation

8 / 15

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

All of the above.

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

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

They help borrowers overcome the problem of lack of collateral.

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 _____.

Payment made

Future payment

No payment

Collateral

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

Which one of the following options describes ‘Collateral’?

Trade in barter

Certain products for barter

Double coincidence of wants

Asset as a guarantee for a loan

12 / 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

13 / 15

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

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?

Principal Amount

Collateral

Installments

Interest Rate

14 / 15

Why is modern currency accepted as a medium of exchange?

Because it is accepted by international organizations

Because it is used by all countries

Because it is authorized by the government

Because it is backed by gold reserves

15 / 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

village moneylender

cooperative society

commercial bank

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The average score is 65%

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Pos.	Name	Score	Duration	Points
1	qwerty	100 %	1 minutes 13 seconds	15
2	Steve Harrington	100 %	1 minutes 25 seconds	15
3	someone	100 %	2 minutes 41 seconds	15
4	Ullu	100 %	5 minutes	15
5	Fff	93 %	1 minutes 6 seconds	14
6	Sia	93 %	1 minutes 20 seconds	14
7	V	93 %	2 minutes 10 seconds	14
8	Guuuggttty	87 %	1 minutes 18 seconds	13
9	fd	87 %	2 minutes 36 seconds	13
10	rose	87 %	3 minutes	13
11	V	87 %	3 minutes 32 seconds	13
12	vd	87 %	5 minutes 55 seconds	13
13	Fyyugg	80 %	1 minutes 26 seconds	12
14	Tvisha	80 %	1 minutes 44 seconds	12
15	Agrawal	80 %	2 minutes 22 seconds	12
16	lucky	80 %	3 minutes 11 seconds	12
17	Deeptika	80 %	3 minutes 23 seconds	12
18	Umar	80 %	3 minutes 33 seconds	12
19	ssssssssssss	80 %	3 minutes 45 seconds	12
20	Sia	80 %	4 minutes 10 seconds	12
21	sagar	80 %	6 minutes 23 seconds	12
22	Amit	80 %	7 minutes 17 seconds	12
23	Pridba	80 %	8 minutes 3 seconds	12
24	tyhj,	73 %	2 minutes 12 seconds	11
25	n	73 %	2 minutes 16 seconds	11
26	Kum s il	73 %	3 minutes 33 seconds	11
27	ria	73 %	4 minutes 18 seconds	11
28	Sana	73 %	4 minutes 18 seconds	11
29	aads	73 %	5 minutes 18 seconds	11
30	ANIL	73 %	5 minutes 55 seconds	11
31	Tanu	73 %	6 minutes 9 seconds	11
32	Harshita	73 %	6 minutes 46 seconds	11
33	Dolly	73 %	7 minutes 34 seconds	11
34	Vishwajit atnure	73 %	9 minutes 20 seconds	11
35	jagath	73 %	11 minutes 32 seconds	11
36	naisha	67 %	2 minutes 25 seconds	10
37	sanvi ji	67 %	3 minutes 3 seconds	10
38	tanu	67 %	3 minutes 45 seconds	10
39	s	67 %	4 minutes 25 seconds	10
40	Fgg	67 %	5 minutes 8 seconds	10
41	Steve Harrington	67 %	5 minutes 13 seconds	10
42	Aryamaan	60 %	3 minutes 27 seconds	9
43	qwertyuiop[asdfghjklzxcvbnm	60 %	4 minutes 24 seconds	9
44	Rohit	60 %	11 minutes 10 seconds	9
45	Gh	60 %	12 minutes 42 seconds	9
46	SWARIT	53 %	1 minutes 59 seconds	8
47	g	53 %	1 hours 42 minutes 12 seconds	8
48	Daksh Goyal	47 %	5 minutes 26 seconds	7
49	R	47 %	5 minutes 40 seconds	7
50	Manas vi	47 %	7 minutes 23 seconds	7
51	S	47 %	8 minutes 57 seconds	7
52	gujjar123	40 %	1 minutes 39 seconds	6
53	Dad	40 %	3 minutes 19 seconds	6
54	Janvi	40 %	3 minutes 29 seconds	6
55	Ff	40 %	4 minutes 2 seconds	6
56	Umra	40 %	10 minutes 50 seconds	6
57	Momo	33 %	3 minutes 20 seconds	5
58	Kumail	33 %	5 minutes 51 seconds	5
59	AFIA SHAIKH	27 %	1 minutes 18 seconds	4
60	ee	20 %	3 minutes 43 seconds	3
61	gujjar	13 %	44 seconds	2
62	😂😂 lol	13 %	1 minutes 2 seconds	2
63	gujjar	13 %	7 minutes 1 seconds	2
64	MANU	0 %	18 minutes 57 seconds	0

Also See: CBSE Class 10 Maths: Top Case-Based Questions

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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