10TH CBSE SST ECO - Money and Credit 100 MCQS QUIZ

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EACH CHAPTERS 100 MCQS QUIZ

Money and Credit

10 MCQ Tests × 10 Questions

100 MCQs based on the uploaded PDF.

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Test 1

10 Questions • 10 Marks

Money and Credit

Source Q1

Q1. The currency notes on behalf of the Central Government are issued by whom?

A. State Bank of India.B. Reserve Bank of India.C. Punjab National Bank.D. Central Bank of India.

Source Q2

Q2. Which among the following organisations issues the currency notes in India?

A. The Central Government of IndiaB. The NITI AayogC. The Finance MinistryD. The Reserve Bank of India

Source Q3

Q3. Which among the following issues currency notes on behalf of the Central Government?

A. State Bank of India.B. Rserve Bank of India.C. Commercial Bank of India.D. Union Bank of India.

Source Q4

Q4. Banks provide a higher rate of interest on which one of the following accounts?

A. Saving account.B. Current account.C. Fixed deposits for long period.D. Fixed deposits, for very short period.

Source Q5

Q5. Why do banks keep a small proportion of the deposits as cash with themselves?

A. To extent loan to the poor.B. To extend loan facility.C. To pay salary to their staff.D. To pay the depositors who might come to withdraw money.

Source Q6

Q6. Which one of the following is the main source of credit for rich urban households in India?

A. Formal sector.B. Informal sector.C. Moneylenders.D. Traders.

Source Q7

Q7. Professor Muhammad Yunus is the founder of which one of the following banks?

A. Co-operative Bank.B. Commercial Bank.C. Grameen Bank.D. Land Development Bank.

Source Q8

Q8. Which one of the following is the appropriate meaning of collateral?

A. It is the sum total of money borrowed from banks.B. The amount borrowed from friends.C. It is an asset of the borrower used as guarantee to a lender.D. The amount invested in a business.

Source Q9

Q9. Which one of the following is a formal source of credit?

A. Traders.B. Cooperative societies.C. Money-lenders.D. Friends and relatives.

Source Q10

Q10. Which of the following is the main informal source of credit for rural households in India?

A. Friends.B. Relatives.C. Landlords.D. Money lenders.

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Test 2

10 Questions • 10 Marks

Money and Credit

Source Q11

Q1. Which one of the following categories of urban households take the highest percentage of loan from the formal sector?

A. Poor householdsB. Households with few assetsC. Well-off householdsD. Rich households

Source Q12

Q2. Which one of the following statements is most appropriate regarding transactions made in money?

A. It is the easiest way.B. It is the safest way.C. It is the cheapest way.D. It promotes trade.

Source Q13

Q3. Who among the following takes the decision regarding saving and loan activities in the Self Help Groups SHGs)?

A. Manager of a BankB. Members of Non-Governmental Organisation NGOC. Local Money LendersD. Members of Self-Help Group SHG

Source Q14

Q4. Which one of the following is not a feature of money?

A. Medium of exchange.B. Lack of divisibility.C. A store of value. D A unit of account.

Source Q15

Q5. Which one of the following is the modern form of currency?

A. Paper notesB. Gold coinsC. Silver coinsD. Copper coins

Source Q16

Q6. The currency convertibility concept originated in _____.

A. Wells agreementB. Bretton woods agreementC. Taylors agreementD. None of the above

Source Q17

Q7. 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.

Source Q18

Q8. According to the information given on formal and informal loans how much of the loan is taken by the poor household from informal sources?

A. 60%.B. 75%.C. 85%.D. 70%.

Source Q19

Q9. What percentage of their deposits is kept as cash by the banks in India?

A. 25%B. 20%C. 15%D. 10%

Source Q20

Q10. What are electronic banking services?

A. ATM.B. Debit Card.C. Credit Card.D. All of these.

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Test 3

10 Questions • 10 Marks

Money and Credit

Source Q21

Q1. Give an example of digital banking?

A. Cheque.B. Demand draft.C. Deposit form.D. ATM card.

Source Q22

Q2. Which of the following is not a modern form of money?

A. Paper notes.B. Demand deposits.C. Silver coins.D. None of the above.

Source Q23

Q3. Which one of the following does not come under terms of credit?

A. Interest rate.B. Employment.C. Collateral.D. Mode of repayment.

Source Q24

Q4. As published in various newspapers, the Experian Credit Information Company of India is going to launch its operation in India soon. At present the only credit information bureau functional in India is

A. AMFIB. ICRAC. CIBILD. CRISIL

Source Q25

Q5. ___________ of the loans taken by rich households in the urban areas are from formal sources.

A. 20 Percent.B. 10 Percent.C. 15 Percent.D. 90 Percent.

Source Q26

Q6. Assertion A Banks charge a higher interest rate on loans than what they offer on deposits. Reason R The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

A. Both assertion and reason are true, and reason is the correct explanation of assertion.B. Both assertion and reason are true, but reason is not the correct explanation of assertion.C. Assertion is true, but reason is false.D. Both assertion and reason are false.

Source Q27

Q7. If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the __________.

A. Loan applications received and disposal register.B. Opinion reportsC. Loan rejection registerD. None of the above

Source Q28

Q8. Assertion A The modern currency is used as a medium of exchange; however, it does not have a use of its own. Reason R Modern currency is easy to carry

A. Both assertion and reason are true, and reason is the correct explanation of assertion.B. Both assertion and reason are true, but reason is not the correct explanation of assertion.C. Assertion is true, but reason is false.D. Both assertion and reason are false.

Source Q29

Q9. 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.

Source Q30

Q10. 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.

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Test 4

10 Questions • 10 Marks

Money and Credit

Source Q31

Q1. …………Refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

A. Debit.B. Cash transaction.C. Credit.D. Tradea.

Source Q32

Q2. Which is the most liquid measure of money supply?

A. M1B. M2C. M3D. M4

Source Q33

Q3. The source of institutional credit is?

A. Money lenderB. LandlordC. BankD. Relatives

Source Q35

Q4. Which is one of the major reasons which prevent the poor from getting bank loans?

A. Illiteracy.B. Lack of availability of banks in rural areas.C. Absence of collateral.D. Shy to approach formal organizations.

Source Q36

Q5. Which of the following are examples of the informal sector loans?

A. Moneylenders.B. Traders.C. Only (a) and (b).D. Cooperatives.

Source Q37

Q6. One of the delivery channel for Micro Finance is SHG model. SHG means _______.

A. Soar Help GroupB. Sake Help GroupC. Self Help GroupD. Store Help Group

Source Q38

Q7. In situations with high risks, credit might create further problems for the borrower, what is it called?

A. Absence of collateral.B. Debt trap.C. Debit.D. Demand deposits.

Source Q39

Q8. Banks mediate between those who have surplus funds and those:

A. Who have fixed deposits.B. Who have gold ornaments.C. Who are in need of these fluids.D. None of the above.

Source Q40

Q9. 1Mark Saving per member of a SHG varies from Rs _____ to Rs _____ or more, depending upon the ability of the people to save.

A. 10; 40B. 15; 65C. 25; 100D. 40; 150

Source Q41

Q10. Small farmers borrow money for cultivation from _____.

A. TradersB. Family membersC. BanksD. Money lenders

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Test 5

10 Questions • 10 Marks

Money and Credit

Source Q42

Q1. Credit is generally given at a high rate of interest by _____.

A. CooperativesB. Self help groupsC. Money lendersD. Banks

Source Q43

Q2. Choose the most appropriate answer. Formal sources of credit does not include:

A. Banks.B. Cooperatives.C. Employers.

Source Q44

Q3. An asset that the borrower uses as a repayment guarantee to a lender is termed as a:

A. Deposit.B. Collateral.C. Advance.D. All the above.

Source Q45

Q4. 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.

Source Q46

Q5. Assertion A The facility of demand deposits makes it possible to settle payments without the use of cash. Reason R Demand deposits are paper orders which make it possible to transfer money from one personʼs account to another personʼs account.

A. Both assertion and reason are true, and reason is the correct explanation of assertion.B. Both assertion and reason are true, but reason is not the correct explanation of assertion.C. Assertion is true, but reason is false.D. Both assertion and reason are false.

Source Q47

Q6. Limited legal money is the one no one can refuse to accept upto ________.

A. Rs.100B. Rs.25C. Rs.50D. Rs.10

Source Q48

Q7. 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.

Source Q49

Q8. In case of Term Loans, the period of limitation is calculated as three years from ________.

A. Date of documentsB. Date of sanctionC. Date of defaultD. Due date of each installment

Source Q50

Q9. Tick the correct answer. After the transaction between Salim and Prem,

A. Salimʼs balance in his bank account increases, and Premʼs balance increases.B. Salimʼs balance in his bank account decreases and Premʼs balance increases.C. Salimʼs balance in his bank account increases and Premʼs balance decreases.

Source Q51

Q10. People also have the provision to withdraw the money as and when they require the deposits in the bank accounts to be withdrawn, what are these deposits called?

A. Fixed deposits.B. Savings.C. Demand deposits.D. Demand drafts.

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Test 6

10 Questions • 10 Marks

Money and Credit

Source Q52

Q1. Which of the following is considered an informal method of getting credit/ finance?

A. Internet bankingB. Branch visitsC. Going to moneylendersD Telebanking

Source Q53

Q2. The full form of SHG is:

A. Station House Guard.B. State Housing Guarantee.C. Self Happy Groups.D. Self Help Groups.

Source Q54

Q3. Grameen Bank of Bangladesh is one of the biggest success stories, in 2018 it had over …. million members in about 81,600 villages.

A. 8.B. 10.C. 7.D. 9.

Source Q55

Q4. ___________ of the loans taken by well-off households in the urban areas are from formal sources.

A. 54 Percent.B. 64 Percent.C. 90 Percent.D. 72 Percent.

Source Q56

Q5. ___________ of the loans taken by households with few assets in the urban areas are from informal sources.

A. 53 Percent.B. 28 Percent.C. 72 Percent.D. 47 Percent.

Source Q57

Q6. M. Salim wants to withdraw Rs 20,000 in cash for making payments to Prem after Prem receives the money he deposits it in his own account? What is the result?

A. Salimʼs balance in his bank account increases, and Premʼs balance increases.B. Salimʼs balance in his bank account decreases and Premʼs balance increases.C. Salimʼs balance in his bank account increases and Premʼs balance decreasesD. None of the above.

Source Q58

Q7. Credit or loan refers to an agreement between:

A. Lender and borrower.B. Consumer and producer.C. Government and tax payer.D. All the above.

Source Q59

Q8. A " hot money" or the "refugee capital" is one which _________.

A. Is transferred from one country to another for greater safety.B. Is carned by a refugeeC. Deposited by a refugee who is taking refugee in the country.D. None of these

Source Q60

Q9. 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.

Source Q61

Q10. Which of the following could lead to a debt trap?

A. The high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower.B. Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan.C. The high interest rate for borrowing can mean that the amount to be repaid is lesser than the income of the borrower.D. Both (a) and (b.)

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Test 7

10 Questions • 10 Marks

Money and Credit

Source Q62

Q1. Which one is related with micro financing?

A. SHGB. Anganwadi workersC. Women EntrepreneursD None of the above

Source Q63

Q2. Terms of credit are with respect to:

A. Interest rate.B. Collateral.C. Documentation.D. All of the above.

Source Q64

Q3. The modern currency is without any use of its own, then why is it accepted as a medium of exchange?

A. Because it is convenient.B. It has digital and manual system.C. It can be used in foreign exchange.D. Is authorised by the government of the country.

Source Q66

Q4. Cheap and affordable credit is crucial for:

A. The development of urban areas.B. The development of rural areas.C. The countryʼs development.D. All the above.

Source Q67

Q5. Who supervises the credit activities of lenders in the informal sector?

A. Central Bank of India.B. Commercial banks.C. Moneylenders.D. None of the above.

Source Q68

Q6. M measure of money supply does not include which of the following?

A. Cash with publicB. Demand deposits with post offices.C. Demand deposits with banksD. Time deposits with banks

Source Q69

Q7. Since money acts as an intermediate in the exchange process, it is called ………

A. Medium of trade.B. Medium of Exchange.C. Medium of Business.D. Medium of transaction.

Source Q70

Q8. 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.

Source Q71

Q9. Which of the following is not a source of rural credit?

A. Regional rural banks.B. Moneylenders.C. Traders.D. Government.

Source Q72

Q10. Credit from _______________ pushes the borrower into a painful situation.

A. CooperativesB. SHGC. MoneylendersD. Banks

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Test 8

10 Questions • 10 Marks

Money and Credit

Source Q73

Q1. Tick the correct answer. Arun is one of the few people in Sonpur to take a bank loan because:

A. Other people in the village prefer to borrow from the moneylenders.B. Banks demand collateral which everyone cannot provide.C. Interest rate on bank loans is same as the interest rate charged by the traders.

Source Q74

Q2. ________ is an asset which serves as a unit of value, medium of exchange, standard of deferred payment and store of value.

A. MoneyB. CurrencyC. Monetary unitD. Rupee 1Mark 3

Source Q75

Q3. In rural areas, what is the major reason behind taking the credit?

A. TelecommunicationB. Crop productionC. Establishment of factoryD. For buying luxuries

Source Q76

Q4. Which of the following does the terms of credit NOT include?

A. Interest rateB. CollateralC. DocumentationD. Lender's land

Source Q77

Q5. The terms of credit comprise of _____.

A. Fixed depositB. Voter cardC. CollateralD. Pan card

Source Q78

Q6. A paper, instructing the bank to pay a specific amount to the person in whose name the paper has been made is called a:

A. Cheque.B. Draft.C. Payment slip.D. None of the above.

Source Q79

Q7. Direct exchange of goods against goods without use of money is known as:

A. Money system.B. Debt trap.C. Barter system.D. Fair exchange.

Source Q80

Q8. Everyone prefers to receive payments in:

A. GoodsB. ChequeC. DraftD. Money

Source Q81

Q9. Modern forms of currency includes:

A. Grains and cattle.B. Coins and paper notes.C. Cheques and pass book.D. None of the above.

Source Q82

Q10. 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.

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Test 9

10 Questions • 10 Marks

Money and Credit

Source Q83

Q1. Which of the following is not an institutional credit agency?

A. Cooperative SocietyB. MoneylenderC. Commercial BanksD. Regional Rural Banks

Source Q84

Q2. 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.

Source Q85

Q3. In a SHG, important decisions in regard to loan and savings are taken by _____.

A. Government organizationB. BankC. Non-government organisationD. Group Members

Source Q86

Q4. Devaluation of currency means _____.

A. Reduction in value of currency vis-a-vis other currencies.B. Permitting currency to seek its worth in other markets.C. Fixing value of currency.D. Increase in value of currency vis-a-vis other currencies.

Source Q87

Q5. When does credit play a positive role?

A. When the loan repayment is not done on time but profits are made.B. When neither loan repayment is done on time nor are profits made.C. When the loan repayment is done on time and profits are made.D. None of the above.

Source Q88

Q6. In India, _____________ issues currency notes on behalf of the Central Government.

A. Finance Commission.B. Ministry of Finance.C. Reserve Bank of India RBI.D. None of the above.

Source Q89

Q7. The facility of cheques against demand deposits makes it possible to directly settle payments without the use of………

A. Deposit slip.B. Cash.C. Moneylender.D. Other funds.

Source Q90

Q8. Modern form of money is linked with which system?

A. Accounts system.B. Finance system.C. Banking system.D. None of these.

Source Q91

Q9. The most important reason for an investor to prefer a bank deposit is _________.

A. The credit worthiness of the Bank.B. The Bank does not invest in the securities.C. The Bank offers a guarantee.D. All of the above.

Source Q92

Q10. Bad advances of a Bank are called ________.

A. Bad debtB. Book debtC. Non-performing assetsD. Out-of-order accounts

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Test 10

10 Questions • 10 Marks

Money and Credit

Source Q93

Q1. Standard and Poor's is a Credit Rating Agency of international repute. Which of the following is one such agency of Indian origin?

A. IBAB. BASELC. SEBID. CRISIL

Source Q94

Q2. Which system has been replaced by 'Money as a medium of exchange'?

A. Exhange SystemB. Commodity SystemC. Barter SystemD. Double coincidence of wants

Source Q95

Q3. Modern forms of money include ________.

A. Paper notesB. Gold coinsC. Silver coinsD. Copper coins

Source Q96

Q4. Who supervises the functioning of formal source of loans?

A. Reserve Bank of India.B. State Bank of India.C. Central Bank of India.D. Informal money lenders.

Source Q97

Q5. Rich households in urban areas avail cheap credit from:

A. Formal sources.B. Informal sources.C. Government.D. All of the above.

Source Q98

Q6. _____ are widely accepted as a medium of exchange.

A. Rupee notes.B. Gold coins.C. Silver coins.D. All the above.

Source Q99

Q7. Currency notes in India are issued by the:

A. State Bank of India.B. Reserve Bank of India.C. Central Bank of India.D. None of these.

Source Q100

Q8. The term 'Plastic Money' refers to ___________.

A. ATM cardsB. Plastic-coated currency notesC. Foreign currency notesD. Traveler's cheque

Source Q101

Q9. What were the earliest form of objects used as money in India?

A. Grains and cattle.B. Coins.C. Jewels.D. Land.

Source Q102

Q10. Why is money called the medium of exchange?

A. Goods are being bought and sold with the use of money.B. Use of money has made things easier to exchange.C. Money acts as an intermediate in the exchange process.D. Without exchange of money nobody can fulfil all his needs and requirements.

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Source: 20. ECO - Money and Credit MCQ QA.pdf