Money and Credit: Class 10 Important Questions with Answers

14 MCQs

1. The essential feature of barter is
   (a) money (b) double coincidence of wants (c) credit (d) cheque
2. Currency notes in India are issued by
   (a) Ministry of Finance (b) SBI (c) RBI (d) State governments
3. Banks in India hold about ___ of deposits as cash.
   (a) 5% (b) 15% (c) 25% (d) 50%
4. Deposits that can be withdrawn on demand
   (a) fixed deposits (b) demand deposits (c) collateral (d) loans
5. Shyamal's earlier moneylender charged per year
   (a) 8.5% (b) 36% (c) 60% (d) 5%
6. Arun's bank loan interest rate
   (a) 3% per month (b) 8.5% per annum (c) 5% per month (d) 12% per annum
7. Megha's house loan collateral
   (a) her salary slip (b) papers of the new house (c) gold (d) land
8. Members of Krishak Cooperative
   (a) 230 (b) 2,300 (c) 23,000 (d) 9 million
9. Largest source of rural credit in 2019
   (a) moneylenders (b) commercial banks (c) cooperatives (d) relatives
10. Share of informal loans of poor urban households
    (a) 17% (b) 54% (c) 83% (d) 23%
11. A typical SHG has ___ members.
    (a) 5–10 (b) 15–20 (c) 50–60 (d) 100
12. An SHG becomes eligible for a bank loan after about
    (a) one month (b) one or two years (c) five years (d) ten years
13. Grameen Bank's founder
    (a) Amartya Sen (b) Muhammad Yunus (c) Kailash Satyarthi (d) Sheikh Hasina
14. Which is not a term of credit?
    (a) interest rate (b) collateral (c) mode of repayment (d) the borrower's religion

1 (b) · 2 (c) · 3 (a) · 4 (b) · 5 (c) · 6 (b) · 7 (b) · 8 (b) · 9 (b) · 10 (b) · 11 (b) · 12 (b) · 13 (b) · 14 (d)

Assertion–Reason (4)

(a) Both true, R explains A. (b) Both true, R does not explain A. (c) A true, R false. (d) A false, R true.

1. A: Money eliminates the need for double coincidence of wants. R: Money acts as an intermediate in exchange.
2. A: Informal lenders may harass borrowers. R: No organisation supervises informal lenders.
3. A: Banks lend to SHGs without collateral. R: The group is responsible for repayment.
4. A: Rich households depend more on informal credit. R: They have collateral.

Key: 1 (a) · 2 (a) · 3 (a) · 4 (d)