Money and Credit Class 10 MCQs
Money and Credit Class 10 MCQs – Understanding Economic Development
Class: 10
Subject: Social Science
Section: Economics – Understanding Economic Development
Topic: Money and Credit
Board: CBSE Board Examination
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 10 Social Science exam standard.
Subject: Social Science
Section: Economics – Understanding Economic Development
Topic: Money and Credit
Board: CBSE Board Examination
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 10 Social Science exam standard.
1. Money acts as a:
Answer: D
Money performs multiple functions—facilitating exchange, storing wealth, and measuring value.
Money performs multiple functions—facilitating exchange, storing wealth, and measuring value.
2. Barter system involves:
Answer: B
Barter is direct exchange without money.
Barter is direct exchange without money.
3. Double coincidence of wants means:
Answer: B
Both parties must want what the other offers.
Both parties must want what the other offers.
4. Modern currency is issued by:
Answer: C
Currency is authorised by the government and circulated via RBI.
Currency is authorised by the government and circulated via RBI.
5. Bank deposits are called:
Answer: B
Banks must repay depositors.
Banks must repay depositors.
6. Cheque is a form of:
Answer: B
It orders the bank to pay.
It orders the bank to pay.
7. Credit means:
Answer: B
Loan taken for use with repayment obligation.
Loan taken for use with repayment obligation.
8. Formal credit sources include:
Answer: C
They are regulated institutions.
They are regulated institutions.
9. Informal credit sources:
Answer: C
They charge high interest.
They charge high interest.
10. Collateral is:
Answer: B
Asset pledged against loan.
Asset pledged against loan.
11. RBI regulates:
Answer: D
Central bank controls monetary system.
Central bank controls monetary system.
12. SHGs promote:
Answer: D
Self-help groups support rural finance.
Self-help groups support rural finance.
13. Formal loans have:
Answer: D
Safer borrowing system.
Safer borrowing system.
14. Credit can be:
Answer: C
Depends on usage.
Depends on usage.
15. Example of productive credit:
Answer: A
Generates income.
Generates income.
16. Debt trap occurs when:
Answer: B
Borrower can’t repay.
Borrower can’t repay.
17. Demand deposits are:
Answer: B
Used via cheque.
Used via cheque.
18. Loan interest depends on:
Answer: D
Multiple factors influence rates.
Multiple factors influence rates.
19. Formal sector expansion ensures:
Answer: D
Improves financial inclusion.
Improves financial inclusion.
20. Best way to reduce exploitation:
Answer: B
Regulated credit protects borrowers.
Regulated credit protects borrowers.