MCQs For NCERT Class 10 Social Science Chapter 3 Money and Credit

MCQs Class 10

Please refer to the MCQ Questions for Class 10 Social Science Chapter 3 Money and Credit with Answers. The following Money and Credit Class 10 Social Science MCQ Questions have been designed based on the current academic year syllabus and examination guidelines for Class 10. Our faculty has designed MCQ Questions for Class 10 Social Science with Answers for all chapters as per your NCERT Class 10 Social Science book.

Money and Credit Class 10 MCQ Questions with Answers

Please see below Money and Credit Class 10 Social Science MCQ Questions, solve the questions and compare your answers with the solutions provided below. 

Question. Most loans from informal lenders carry a very high interest rate and do little to:
(a) Do anything for the poor
(b) Pay the loans
(c) Increase the income of the borrowers
(d) None of the above

Answer

C

Question. A paper, instructing the bank to pay a specific amount to the person in whose name the paper has been made is called a:
(а) Cheque
(b) Draft
(c) Payment slip
(d) None of the above

Answer

A

Question. Banks use the major portion of the deposits:
(a) For constructing
(b) As fixed deposits
(c) To extend loans
(d) None of the above

Answer

C

Question. It is important that the formal credit is distributed more equally so that:
(a) The rich can benefit from the cheaper loans
(b) The poor can benefit from the cheaper loans
(c) The women can benefit from the cheaper loans
(d) None of the above

Answer

B

Question. The full form of SHG is:
(а) Station House Guard
(b) State Housing Guarantee
(c) Self Happy Groups
(d) Self Help Groups

Answer

D

Question. When both parties agree to sell and buy each others commodities it is known as:
(a) Single coincidence of wants
(b) Double coincidence of wants
(c) Coincidence of wants
(d) None of the above

Answer

B

Question. Modern forms of currency includes:
(a) Grains and cattle
(b) Coins and paper notes
(c) Cheques and pass book
(d) None of the above

Answer

B

Question. Banks accept the deposits of the customers and also:
(a) Give a gold coin in return
(b) Give a silver coin in return
(c) Give a cheque book
(d) Pay an interest rate on the deposits

Answer

D

Question. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called:
(a) Smart deposit
(b) Quick deposits
(c) Demand deposits
(d) All the above

Answer

C

Question. Banks mediate between those who have surplus funds and those:
(а) Who have fixed deposits
(b) Who have gold ornaments
(c) Who are in need of these fluids
(d) None of the above

Answer

C

Question. The difference between what is charged from borrowers and what is paid to depositors is:
(a) The rate of interest
(b) Never equal
(c) The main source of income of banks
(d) None of the above

Answer

C

Question. The SHGs help borrowers overcome the problem of:
(а) Lack of funds
(b) Lack of money
(c) Lack of collateral
(d) None of the above

Answer

C

Question. Everyone prefers to receive payments in:
(a) Goods
(b) Cheque
(c) Draft
(d) Money

Answer

D

Question. Loans from banks and cooperatives are called:
(a) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loan

Answer

C

Question. Loans from moneylenders, traders, employers, relatives and friends are called:
(а) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loans

Answer

D

Fill in the blanks

Question. ……………………… refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

Answer

credit

Question. The use of ……………………… spans a very large part of our everyday life.

Answer

money

Question. Modem form of money includes paper notes and ……………………… .

Answer

coins

Question. Farmers usually take crop loans at the beginning of the season and repay the loan after ……………………… .

Answer

harvest

Question. ……………………… may vary depending on the nature of the lender and the borrower.

Answer

collateral

Question. No individual or organisation is allowed to issue ……………………… .

Answer

currency

Question. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called ……………………… deposits.

Answer

demand

Write true (T) or false (F)

Question. The difference between what is charged from borrowers and what is paid to depositors is the main source of income of banks.

Answer

True

Question. Property, deposits with banks, livestock are some examples of security used for lending.

Answer

False

Question. The terms of credit vary substantially from one credit arrangement to another.

Answer

True

Question. In rural areas, the main demand for credit is for irrigation.

Answer

False

Question. Credit never helps to increase earnings.

Answer

False

Question. Land, building, vehicle, live stocks etc. are not examples of collateral.

Answer

False

Question. If the borrower fails to repay the loan the lender has the right to sell the asset.

Answer

True

Question. In India, the Reserve Bank of India issues currency notes on behalf of the state government.

Answer

False

Question. No individual in India can legally refuse a payment made in rupees.

Answer

True

Question. Money is something that can act as a medium of exchange in transactions.

Answer

True

Question. Modern form of money include cheques and drafts.

Answer

False

Question. For a farmer, the failure of the crop makes loan repayment impossible.

Answer

True

Question. Credit pushes the borrower into a situation from which recovery is very painful.

Answer

True

Question. A large number of transactions m our day-to-day activities involve debt in some form or the other.

Answer

False

Question. Credit plays a vital and positive role in an individual’s life.

Answer

True

Match the following

Column-IColumn-IIColumn-III
1. Land, building, vehicle, livestock, etc.(a) of the(A) collateral
2. Banks loans require proper(b) financially(B) self-reliant
3. SHGs are the building blocks of organisation(c) variety of(C) sources
4. SHGs help women to become(d) refers to(D) rural people
5. Credit is available from a(e) documents and(E) collateral
Answer

1. → (d) → (A), 2. → (e) → (E), 3. → (a) → (D), 4. → (b) → (B), 5. → (c) → (C)

Match the following : (957)

Column AColumn B
1. Collateral(A) Issuing currency notes
2. Terms of Credit(B) Banks and cooperative societies
3. Formal sector(C) Borrower’s asset that
he/she produces in bank for loan
4. Informal sector(D) Rate of interest,
collateral and mode of repayment
5. RBI(E) Money lenders
Answer

(C), 2. (D), 3. (B), 4. (E), 5. (A)

Money and Credit Class 10 MCQ Questions