Money and Credit Class 10 MCQ Quiz – Test Your Knowledge

Are you preparing for your CBSE Class 10 Social Science board exam? This MCQ quiz on "Money and Credit" will help you revise key concepts like forms of money, the role of credit, formal and informal sources of credit, and the impact of credit on the economy.

About the Quiz

Chapter Name: Money and Credit
Subject: Social Science (Economics)
Book: NCERT Class 10 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Quick revision for CBSE exams
✔ Based on NCERT textbook concepts
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Chapter 3 - Money and Credit

1 / 15

What are the two forms of modern currency?

Paper notes and mobile wallets

Coins and credit cards

Paper notes and coins

Gold and silver

2 / 15

Most agricultural laborers like Mohan depend upon loans from the informal sector. Which of the following statements about this sector is correct –

Money lenders use fair means to get their money back

Money lenders ask for a reasonable rate of interest

Cost of informal loans to the borrower is quite high

There is govt. bodies to supervise the informal sector

3 / 15

What is a potential negative economic implication of an economy without the concept of credit?

Increased capacity of savings

Limited access to funds for starting businesses or making investments

Increased access to funds for starting businesses

Increased financial flexibility and convenience

4 / 15

How do SHGs help borrowers overcome the problem of lack of collateral?

By requiring collateral from borrowers.

By using the group's savings as collateral.

By guaranteeing loan repayment through group pressure.

By providing loans at a higher rate of interest.

5 / 15

What is the role of Self-Help Groups (SHGs) in rural society?

All of the above.

They help borrowers overcome the problem of lack of collateral.

They provide loans to small-scale industries and rural households.

They provide a platform for discussing and acting on social issues.

6 / 15

Rehman is a poor agricultural labor and needs a loan for cultivation on his small piece of land.

Which of the following would DEFINITELY offer him a fair interest rate and flexible terms of credit?

commercial bank

village moneylender

cooperative society

rich landowner

7 / 15

Which one of the following options describes ‘Collateral’?

Trade in barter

Double coincidence of wants

Certain products for barter

Asset as a guarantee for a loan

8 / 15

In SHGs most of the decisions regarding savings and loan activities are taken by _____.

LIC

Government organization

Bank

Members

9 / 15

A porter making pots, wants to exchange pots for wheat. Luckily, he meets a farmer who has wheat and is willing to exchange it for pots. What is this situation known as?

Double incidence of wants

Incidence of wants

Barter system of wants

None of the above

10 / 15

In India, who issues the currency notes on behalf of the central government?

Finance Minister of India

State Bank of India

Reserve Bank of India

None

11 / 15

What is the main difference between formal and informal sources of credit?

Formal sources are supervised by the RBI, while informal sources are not supervised by any organization.

Formal sources require collateral, while informal sources do not require collateral.

Formal sources provide loans only to large-scale industries, while informal sources provide loans to small-scale industries and rural households.

Formal sources charge a higher rate of interest, while informal sources charge a lower rate of interest.

12 / 15

Rita has taken a loan of Rs.7 lakhs from the bank to purchase a car. The annual interest rate on the loan is 14.5 percent and the loan is to be repaid in 3 years in monthly installments. The bank retained the papers of the new car as collateral, which will be returned to Rita only when she repays the entire loan with interest.

Analyze the loan information given above, considering one of the following correct options.

Interest on loan

Terms of credit

Mode of re-payment

Deposit criteria

13 / 15

What is the primary function of money?

Medium of exchange

Credit creation

All of the above

Standard of deferred payments

14 / 15

What are the main terms of credit?

Interest rate, collateral, documentation requirement, mode of repayment, and time period

Interest rate, collateral, and documentation requirement

Interest rate, mode of repayment, and time period

Collateral, documentation requirement, and mode of repayment

15 / 15

How do banks earn income from deposits?

By investing in stocks and shares

By paying a higher interest rate on deposits

By charging a fee for depositing money

By charging a higher rate of interest on loans than what they offer on deposits

Your score is

The average score is 59%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Praniiii❤️🥴🧿	100 %	1 minutes 30 seconds	15
2	varun	100 %	2 minutes 16 seconds	15
3	G	100 %	2 minutes 31 seconds	15
4	Pranii❤️🥴🧿	93 %	1 minutes 26 seconds	14
5	Praniii❤️🥴🧿	93 %	1 minutes 54 seconds	14
6	okk	93 %	1 minutes 55 seconds	14
7	mmmm	93 %	2 minutes 12 seconds	14
8	Rc	93 %	2 minutes 43 seconds	14
9	Ud	93 %	3 minutes 26 seconds	14
10	Hehe	93 %	3 minutes 42 seconds	14
11	nixie	93 %	3 minutes 52 seconds	14
12	ABCD	87 %	2 minutes 18 seconds	13
13	Maya	87 %	3 minutes	13
14	milkana	87 %	3 minutes 2 seconds	13
15	hiowhcfs	87 %	3 minutes 52 seconds	13
16	Ari	87 %	3 minutes 53 seconds	13
17	G	87 %	4 minutes 11 seconds	13
18	Nnm	87 %	4 minutes 14 seconds	13
19	Alaam	87 %	4 minutes 31 seconds	13
20	vbwrgbhn	87 %	4 minutes 42 seconds	13
21	Mohit	87 %	5 minutes 30 seconds	13
22	Hhj	87 %	6 minutes	13
23	Atul Raj	87 %	6 minutes 16 seconds	13
24	DIYA DIJESH	87 %	6 minutes 26 seconds	13
25	Ab	87 %	9 minutes 19 seconds	13
26	Anjali	87 %	11 minutes 39 seconds	13
27	Praniiiiiii❤️🧿	80 %	1 minutes 53 seconds	12
28	varun	80 %	2 minutes 54 seconds	12
29	Saw	80 %	3 minutes 45 seconds	12
30	Sudha	80 %	4 minutes 1 seconds	12
31	Sweet	80 %	4 minutes 8 seconds	12
32	Salman	80 %	4 minutes 45 seconds	12
33	Monika	80 %	5 minutes 47 seconds	12
34	Vaibhav	80 %	6 minutes 3 seconds	12
35	Bhava	80 %	7 minutes 57 seconds	12
36	Fahmitha	80 %	33 minutes 11 seconds	12
37	Prani❤️	73 %	2 minutes 14 seconds	11
38	Salman	73 %	2 minutes 34 seconds	11
39	barbei	73 %	4 minutes 7 seconds	11
40	Ab	73 %	4 minutes 11 seconds	11
41	Thanmaya	73 %	4 minutes 14 seconds	11
42	Ak	73 %	4 minutes 31 seconds	11
43	Jyoshethaah	73 %	6 minutes 26 seconds	11
44	AJ	73 %	6 minutes 45 seconds	11
45	ji	73 %	8 minutes 2 seconds	11
46	Prathamesh	73 %	8 minutes 26 seconds	11
47	vanshika	67 %	3 minutes 45 seconds	10
48	Gagan	67 %	3 minutes 48 seconds	10
49	Sudhanshu Raj	67 %	4 minutes 18 seconds	10
50	Piyush	67 %	4 minutes 43 seconds	10
51	..	67 %	4 minutes 57 seconds	10
52	Ravi	67 %	5 minutes 8 seconds	10
53	Alina	67 %	5 minutes 14 seconds	10
54	Vijit	67 %	5 minutes 26 seconds	10
55	Maya	67 %	6 minutes 5 seconds	10
56	Divya	67 %	6 minutes 50 seconds	10
57	Sak	60 %	2 minutes 18 seconds	9
58	Namrta	60 %	2 minutes 33 seconds	9
59	Xxy	60 %	2 minutes 34 seconds	9
60	Gautam	60 %	2 minutes 37 seconds	9
61	Student	60 %	3 minutes 2 seconds	9
62	Shivansh Singh	60 %	3 minutes 10 seconds	9
63	Jfgj	60 %	3 minutes 26 seconds	9
64	Prince	60 %	4 minutes 14 seconds	9
65	R	60 %	4 minutes 33 seconds	9
66	Harsh	60 %	4 minutes 46 seconds	9
67	Kai	60 %	4 minutes 48 seconds	9
68	Raj	60 %	7 minutes 20 seconds	9
69	Shaurya	60 %	8 minutes 59 seconds	9
70	Sneha	60 %	10 minutes 33 seconds	9
71	Sakshi	60 %	16 minutes 26 seconds	9
72	nagi 123	53 %	2 minutes 13 seconds	8
73	S	53 %	3 minutes 50 seconds	8
74	Tamana thakur	53 %	4 minutes 14 seconds	8
75	Shivani	53 %	4 minutes 49 seconds	8
76	Ambriina	53 %	5 minutes 2 seconds	8
77	Chinki	53 %	6 minutes 34 seconds	8
78	putin	53 %	7 minutes 22 seconds	8
79	Pawani	53 %	10 minutes 16 seconds	8
80	Bhagrath	53 %	10 minutes 41 seconds	8
81	Ronat	47 %	2 minutes	7
82	Sarvesh tembhare	47 %	3 minutes 24 seconds	7
83	anmol	47 %	3 minutes 58 seconds	7
84	Hk	47 %	4 minutes 7 seconds	7
85	Diya	47 %	4 minutes 9 seconds	7
86	Rishu	47 %	4 minutes 16 seconds	7
87	Pranii♥️	47 %	4 minutes 19 seconds	7
88	Anusha Gurung	47 %	4 minutes 21 seconds	7
89	Ram	47 %	4 minutes 35 seconds	7
90	Khush	47 %	5 minutes 7 seconds	7
91	Anmol kaur	47 %	5 minutes 35 seconds	7
92	Jeevitha	47 %	5 minutes 48 seconds	7
93	Aditi	47 %	7 minutes 20 seconds	7
94	AnuuR	47 %	7 minutes 21 seconds	7
95	Sidhant ray	47 %	7 minutes 35 seconds	7
96	Sneha	47 %	32 minutes 16 seconds	7
97	Narpat singh	40 %	1 minutes 47 seconds	6
98	Pt	40 %	2 minutes 13 seconds	6
99	Abhishek Kumar	40 %	3 minutes 47 seconds	6
100	Sachin yadav	33 %	2 minutes 8 seconds	5
101	Sheetal	33 %	2 minutes 38 seconds	5
102	Me	33 %	2 minutes 50 seconds	5
103	P	33 %	3 minutes 20 seconds	5
104	Kriti	33 %	3 minutes 51 seconds	5
105	Bhuvana	33 %	4 minutes 8 seconds	5
106	Narpat singh	33 %	5 minutes 36 seconds	5
107	ulalala	27 %	34 seconds	4
108	Kasa	27 %	1 minutes 8 seconds	4
109	Sachin	27 %	1 minutes 46 seconds	4
110	Archana	27 %	4 minutes 26 seconds	4
111	karnika	27 %	11 minutes 3 seconds	4
112	Narpat singh	20 %	1 minutes 36 seconds	3
113	Ronat	20 %	2 minutes 37 seconds	3
114	Gautam	20 %	9 minutes 40 seconds	3
115	Rte	20 %	18 minutes 22 seconds	3
116	S	13 %	39 seconds	2
117	Jass_dhot	13 %	1 minutes 42 seconds	2
118	Arqaz khan	13 %	2 minutes 28 seconds	2
119	hi	7 %	1 minutes 9 seconds	1
120	S	7 %	1 minutes 27 seconds	1
121	ulalala 2	0 %	21 seconds	0
122	Anmol kaur	0 %	41 seconds	0
123	ulalala 3 - dm open	0 %	1 minutes 4 seconds	0
124	Bhagrath	0 %	1 minutes 10 seconds	0

Key Topics Covered in the Quiz

✔ Functions of Money
✔ Types of Credit – Formal & Informal
✔ Role of Banks & Self Help Groups (SHGs)
✔ Impact of Credit on Borrowers
✔ Collateral and Terms of Credit

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About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

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