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

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

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

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

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

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

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

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

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

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 Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called: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

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

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

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

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

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

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

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.

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

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

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

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

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

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 Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called ……………………… deposits.

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.

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

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

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

Question. Credit never helps to increase earnings.

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

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

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

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

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

Question. Modern form of money include cheques and drafts.

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

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

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

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

Match the following

Column-I	Column-II	Column-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

Match the following : (957)

Column A	Column 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