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Money and Credit Set-1

Test your knowledge on Money and Credit from Economics, Class 10.

The chapter “Money and Credit” is very important for Class 10 Economics because it explains how economic transactions take place in daily life and how money makes exchange easier. It also helps students understand the role of banks, credit, and different sources of loans in a developing economy like India.

For CBSE board exams, this chapter is frequently tested through concept-based MCQs, case-based questions, and application-based questions. A clear understanding of money, banking, credit, collateral, formal and informal loans, and self-help groups helps students score well and also connects economics with real-life financial decisions.

30

Minutes

30

Questions

1 / -0

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Questions in this Quiz

Q1: What is the most important function of money in a modern economy?

  • To reduce production

  • To act as a medium of exchange

  • To increase population

  • To replace goods completely

Q2: In a barter system, exchange becomes difficult mainly because:

  • Money is too costly

  • Goods are not useful

  • Double coincidence of wants is required

  • Banks do not exist

Q3: Which of the following is an example of modern currency?

  • Grain

  • Cattle

  • Paper notes and coins

  • Salt

Q4: In India, paper currency is issued by:

  • State Bank of India

  • Reserve Bank of India

  • Ministry of Finance only

  • Local commercial banks

Q5: Which of the following is a store of value?

  • Money

  • Wheat only

  • Labour

  • Rainwater

Q6: Why is money widely accepted as a means of payment?

  • It is heavy

  • It is universally accepted

  • It is made of gold only

  • It can be eaten

Q7: Which of the following is not a form of modern money?

  • Currency notes

  • Coins

  • Cheques

  • Barter goods

Q8: What is a cheque?

  • A legal tender coin

  • A paper instructing the bank to pay a specific amount

  • A type of loan

  • A bank note printed by RBI

Q9: What is demand deposit?

  • Money kept in a bank account and withdrawable anytime

  • Money buried underground

  • A loan taken from a moneylender

  • Gold kept at home

Q10: Banks can use the money deposited by people because:

  • The bank becomes the owner of all deposits

  • Depositors never need their money

  • Only a small part is kept as cash reserve and the rest is lent out

  • The government forces all deposits to be lost

...and 20 more questions.

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