Dear students as per the latest exam pattern of CBSE Class 10 social science multiple choice questions and answers will be a part of your question paper. Here we are providing mcq for class 10 social science Economics chapter  3 Money and Credit. So let’s dive in for imp mcq of sst class 10
CHAPTER 3
Money and Credit
Multiple Choice Questions
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Q.1. Modem forms of money include ………Â
(a) Dollar and Rupees
(b) Paper notes and coins
(c) Paper notes, coins and bank deposits
(d) Coins
Q.2. In India ………….  issues currency notes on behalf of the Central Government.                                                      Â
(a) RBI
(b) SBI
(c) ICICI
(d) President
Q.3. ………Is an asset that the borrower owns ma this as a guarantee to the lender until the loan is repaid.
(a) Will
(b) Collateral
(c) Fixed Deposit
(d) Education
Q.4. Which of the following is a formal source of credit?
(a) Moneylenders
(b) Relative
(c) Trader
(d) Commercial Banks
Q.5. Which of the following is not a feature of SHG?          Â
(i) They are controlled by the RBI.
(ii) The group charges no rate of interest from its members.
(iii)After a year or two, if the group is regular in savings, it becomes eligible for availing loan from the bank.
(iv) Most of the important decisions regarding the savings and loan activities are taken by the group members.
(a)Only (i) and (ii)
(b)Only (ii) and (iii)
(c)Only (iii) and (iv)
(d)All of the above
Q.6. Which one of the following is not included in the modern from of money?
(a) Paper notes
(b) Coins
(c) Cattle
(d) Demand deposits
Q.7. Anything which is generally accepted by the people in exchange of goods and services is called :Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
(a) Money
(b) Barter
(c) Credit
(d) Loans
Q.8. Terms of credit does not include:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
(a) Interest rate
(b) Collateral
(c) Cheque
(d) Mode of repayment
Q.9. Which one of the following authorises money as a medium of exchange?                                  Â
(a) Reserve Batik of India
(b) Self Helf Groups
(c) The Central Government
(d) The President of India
Q.10. Which of the following is not true regarding the inconvenience of Barter Exchange ?                                                                       Â
(a) Lack of double coincidence of want.
(b) Absence of divisibility.
(c) Difficulty in storing wealth.
(d) Availability of money as a medium of exchange.
Q.11. The informal sector credit includes loans from:Â Â Â Â Â Â Â Â
 (a) Moneylender
(b) Self Help Groups
(c) Co-operative Societies
(d) Banks
Q.12. What do you mean by collateral?                               Â
(a) It is the total sum of money with a person.
(b) It is the things kept in the locker.
(c) It is the guarantee given by the lender to the borrower.
(d) It is the security to a lender until the loan is repaid.
Q.13. Name the system in which the double coincidence of wants Is an essential feature ?                                                           Â
(a) Barter system
(b) Money economy
(c) Global economy
(d) None of the above
Q.14. In a Self Help Group most of the decisions regarding savings and loan activities are taken by :Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
(a) Banks
(b) Members
(c) Non Government Organizations
(d) Moneylenders
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Q.15. Banks do not give loans:
(a) To small farmers
(b) To marginal farmers
(c) To industries
(d) Without proper collateral and documents
Q.16. Which one of the following is correct about the double coincidence of wants ?                                                                                          Â
(a) A person desires to sell what the other wishes to buy without goods.
(b) A person desires to sell double of his goods to other.
(c) Both parties agree to sell and buy each other commodities.
(d) All of the above.
Q.17. What percentage of the loans is taken from informal sources by the poor households in urban area?                                           Â
(a) 90
(b) 47
(c) 72
(d) 85
Q.18. What percent of their deposits do banks hold as cash?
 (a) 50 percent
(b) 80 percent
(c) 15 percent
(d) 60 percent
Q.19. Which one of the following institutions is authorised to issue currency notes ?                                                                                            Â
(a) Reserve Bank of India
(b) Parliament of India
(c) President of India
(d) State Bank of India
Q.20. What is the main source of income for banks?
(a) Interest on loans
(b) Interest on deposits
(c) Difference between the interest charged on borrowers and depositors
(d) None of theseÂ
Q.21. Which one of the following terms is not Included against loans ?
(a) Interest rate
(b) Collateral
(c) Documentation
(d) Lender’s land
Q.22. 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
Q.23. Which one of the following options provides assured payment?
 (a) Voucher
(b) Demand Deposit
(c) Cheque
(d) Collateral
ANSWERS:-
| 1.(c) Paper notes, coins and bank deposits |
| 2. (a) RBI |
| 3. (b) Collateral |
| 4. (d) Commercial Banks |
| 5. (a)Only (i) and (ii) |
| 6. (c) Cattle |
| 7. (a) Money |
| 8. (c) Cheque |
| 9. (a) Reserve Batik of India |
| 10. (d) Availability of money as a medium of exchange. |
| 11. (a) Moneylender |
| 12. (d) It is the security to a lender until the loan is repaid. |
| 13. (a) Barter system |
| 14. (b) Members |
| 15. (d) Without proper collateral and documents |
| 16. (c) Both parties agree to sell and buy each other commodities. |
| 17. (d) 85 |
| 18. (c) 15 percent |
| 19. (a) Reserve Bank of India |
| 20. (c) Difference between the interest charged on borrowers and depositors |
| 21. (d) Lender’s land |
| 21. (c) Fixed deposits for long period |
| 22. (b) Demand Deposit |
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