CBSE Class 10 I Economics I MCQ TEST -1 I Chapter 3 I Money and Credit

Q1. Money is a medium of exchange

True

False

Q2. Which one of the following is a formal source of credit?

Traders

Cooperative societies

Moneylenders

None of these

Q3. Which one of the following is the appropriate meaning of collateral?

It is the sum total of money borrowed from banks.

The amount borrowed from friends.

It is an asset of the borrower used as guarantee to a lender.

None of these

Q4. Which one of the following is a modern form of currency?

Paper notes

Gold

Silver

All of these

Q5. Which one of the following is the newer way of providing loans to the rural poor, particularly women?

Cooperative Banks

Grameen Banks

Self-Help Groups

Moneylenders

Q6. Which of the following is the main informal source of credit for rural households in India?

Friends

Relatives

Landlords

Moneylenders

Q7. Name the system in which the double coincidence of wants is an essential feature.

Barter system

Money economy

Global economy

None of these

Q8. Grameen Bank of Bangladesh was started in

1960s

1970s

1980s

1990s

Q9. In a Self help group, most of the decisions regarding loan activities are taken by

Banks

Members

Non-government organisation

Cooperative

Q10. Which of the following is not an informal source of credit?

Money-lender

Relatives and Friends

Commercial Banks

Traders

Q11. In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?

Bhuta

Sri Lanka

Bangladesh

Nepal

Q12. What portion of deposits are kept by the banks for their day to day transaction?

10%

15%

20%

25%

Q13. Which households take more loans from the formal sector?

Poor households and rich household

Well off households and households with few assets

Poor households and well off households

Well off households and rich households

Q14. Which among these is an essential feature of barter system?

Money can easily exchange any commodity

It is based on double co-incidence of wants

It is generally accepted as a medium of exchange of goods with money

It acts as a measure and store of value

Q15. Which one of the following is the main source of credit for the rich households?

Informal

Formal

Both formal and informal

Neither Formal nor informal

Q16. Which one of the following agencies issues currency notes on behalf of the government of India?

Ministry of Finance

Reserve Bank of India

State Bank of India

None of these

Q17. Who helps the borrowers to overcome the problem of lack of collateral?

Self-help group (SHG)

State government

Employers

Moneylenders

Q18. Rate of interest charged by moneylenders as compared to that charged by banks is:

lower

same

slightly higher

much higher

Q19. Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?

Andhra Pradesh

Tamil Nadu

Kerala

Karnataka

Q20. Who supervises the credit activities of lenders in the informal sector?

Central Bank of India

Commercial banks

Moneylenders

No one