Please refer to Chapter 3 Money and Credit MCQ Class 10 Social Science with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 10 Social Science. Students should refer to MCQ Questions for Class 10 Social Science with Answers to score more marks in Grade 10 Social Science exams. Students should read the chapter Money and Credit and then attempt the following objective questions.

MCQ Questions Class 10 Social Science Chapter 3 Money and Credit

The Money and Credit MCQ Class 10 Social Science provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. Which of the following banks issues currency notes on behalf of the Central government to:
(a) State Bank of India
(b) Commercial Bank of India
(c) Industrial Bank of India
(d) Reserve Bank of India

Question. No individual in India can:
(a) Legally refuse a payment made in rupees
(b) Legally refuse a payment made by cheque
(c) Legally refuse a payment made by draft
(d) All the above

Question. Sometimes lenders demand against loan:
(a) Payment
(b) Cheque
(c) Draft
(d) Collateral

Question. Interest rate, security and documentation requirement, and the mode of repayment together comprise what is called the:
(a) Loan factor
(b) Credit factor
(c) Terms of loan
(d) Terms of credit

Question. Money is something that can act as a medium:
(a) For exchange of commodities.
(b) For exchange of goods
(c) Of exchange in transactions
(d) None of the above

Question. In early ages, Indians used grains and cattle as:
(a) Money
(b) Food
(c) Public property
(d) None of the above

Question. The RBI monitors the banks are actually maintaining:
(а) Cash books
(b) Cash balance
(c) Cash register
(d) None of the above

Question. Most of the informal lenders charge:
(a) A less interest on loans
(b) A much higher interest on loans
(c) Can be both (a) and (b)
(d) None of the above

Question. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment is called:
(a) Loans
(b) Debt
(c) Credit
(d) All the above

Question. In rural areas, the main demand for credit is for:
(a) House loan
(b) Education
(c) Crop production
(d) All the above

Question. The rich households are availing cheap credit from formal lenders whereas the poor households:
(a) Do not get a loan
(b) Get loan at a much less interest
(c) Have to pay a heavy price for borrowing
(d) None of the above

Question. Cheap and affordable credit is crucial for:
(а) The development of urban areas
(b) The development of rural areas
(c) The country’s development
(d) All the above

Question. Farmers usually take crop loans at the beginning of the season and repay the loan after:
(a) Sowing
(b) Tilling
(c) Harvesting
(d) All the above

Question. Credit sometimes, pushes the borrower to a situation from which recovery is:
(а) Easy
(b) Hard
(c) Very painful
(d) None of the above

Question. About 85 percent of the loans taken by poor households in the urban areas are from:
(a) Formal sources
(b) Informal sources
(c) Mixed sources
(d) None of the above

Fill in the blanks

Question. The ……………………… currency is without any use of its own

Question. Demand deposits share the essential features of ……………………… .

Question. The ……………………… lender include moneylenders, trader relatives, friends, etc.

Question. Cheap and affordable credit is crucial for the ……………………… development

Question. A ……………………… is a paper, instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been made.

Question. Repayment of the loan is crucially dependent on the ……………………… from farming.

Question. Credit pushes the person into a ……………………… trap.

Question. Banks use the major portion of the deposits to extend ……………………… .

Write true (T) or false (F)

Question. Banks use the major portion of the deposits to extend loans.

Question. There is a huge demand for loans for various economic activities.

Question. Since, money acts as an intermediate in the exchange process, it is called a medium of exchange.

Question. The modern currency is without any use of its own.

Question. The other form in which people hold money is as grains and cattle.

Question. Banks accept deposits and also pay an interest rate on the deposits.

Question. What a person desires to sell is exactly what the other wishes to buy.

Question. In a barter system, goods are indirectly exchanged with the use of money

Question. People’s money is not safe with the banks.

Question. The modem forms of money are closely linked to the working of the modern banking system.

Question. Sometimes, farmer’s in order to pay loan have to sell a portion of their land.

Question. Collateral refers to security.

Question. Banks keep a large proportion of their deposits as cash for themselves.

Question. Banks in India these days hold about 15 percent of their deposits in cash.

Question. Banks mediate between those who are in need of money with those who do not want money.

Match the following

Column-A	Column-B
1. Formal loans refers to	(а) loans from moneylenders, relatives, etc
2. Informal loans refers to	(b) increase earnings
3. Collateral refer to	(c) debt traps
4. Credit helps	(d) loans from Bank and Post Office
5. Loans lead to	(e) security

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