Money and Credit MCQs Mock Test 10th Class S.St.

Welcome to your Money and Credit MCQs Mock Test 10th Class S.St.

1.

Question 1. Currency is issued in India by :

(a) commercial banks

(b) regional rural banks

(c) nationalised banks

(d) Reserve Bank of India

2.

Question 2. The part of the total deposits which a bank keeps with itself in cash is

(a) zero

(b) a small proportion

(c) a big proportion

(d) 100 percent

3.

Question 3. System of exchanging goods for goods is called:

(a) monetary system

(b) credit system

(c) barter system

(d) exchange system

4.

Question 4. Money

(a) eliminates double-coincidence of wants

(b) acts as a common measure of value

(c) acts as a standard of deferred payments

(d) all the above

5.

Question 5. Which one of the following is a formal source of credit?

(a) Traders

(b) Cooperative societies

(c) Moneylenders

(d) Friends and relatives

6.

Question 6. 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.

7.

Question7. Which one of the following is a modern form of currency?

(a) Paper notes

(b) Gold

(c) Silver

(d) Copper

8.

Question 8. Which one of the following is the newer way of providing loans to the rural poor, particularly women?

(a) Cooperative Banks

(b) Grameen Banks

(c) Self-Help Groups

(d) Moneylenders

9.

Question 9. Which of the following is the main informal source of credit for rural households in India?

(a) Friends

(b) Relatives

(c) Landlords

(d) Moneylenders

10.

Question 10. Name the system in which the double coincidence of wants is an essential feature.

(a) Barter system

(b) Money economy

(c) Global economy

(d) None of these

11.

Question 11. Grameen Bank of Bangladesh was started in

(a) 1960s

(b) 1970s

(d) 1990s

12.

Question 12 In a SHG, most of the decisions regarding loan activities are taken by

(a) Banks

(b) Members

(c) Non-government organisation

(d) Cooperative

13.

Question 13. Which of the following is not an informal source of credit?

(a) Money-lender

(b) Relatives and Friends

(c) Commercial Banks

(d) Traders

14.

Question 14. In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?

(a) Bhuta

(b) Sri Lanka

(c) Bangladesh

(d) Nepal

15.

Question 15. Which is not the main source of credit from the following for rural households in India?

(a) Traders

(b) Relatives and friends

(c) Commercial Banks

(d) Moneylanders

16.

Question 16. What portion of deposits are kept by the banks for their day to day transaction?

(a) 10%

(b) 15%

(c) 20%

(d) 25%

17.

Question 17. Which households take more loans from the formal sector?

(a) Poor households and rich household.

(b) Well off households and households with few assets.

(c) Poor households and well off households

(d) Well off households and rich households.

18.

Question 18. Which among these is an essential feature of barter system?

(a) Money can easily exchange any commodity

(b) It is based on double co-incidence of wants

(c) It is generally accepted as a medium of exchange of goods with money

(d) It acts as a measure and store of value

19.

Question 19. Which one of the following is the main source of credit for the rich households?

(a) Informal

(b) Formal

(c) Both formal and informal

(d) Neither Formal nor informal

20.

Question 20. Which one of the following is not a formal source of credit?

(a) Commercial Banks

(b) State Bank of India

(c) Employers

(d) Co-operatives

21.

Question 21. Which one of the following agencies issues currency notes on behalf of the government of India?

(a) Ministry of Finance

(b) Reserve Bank of India

(c) State Bank of India

(d) World Bank

22.

Question 22. Formal Sources of credit include :

(a) money lenders

(b) co-operatives

(c) Employers

(d) Finance companies

23.

Question 23. Which one of the following is NOT an informal sector loans for poor rural household in India?

(a) Commercial Banks

(b) Moneylenders

(c) Traders

(d) Landlords

24.

Question 24. Which one of the following is not a modern form of money?

(a) Demand Deposits

(b) Paper currency

(c) Coins

(d) Precious metals

25.

Question 25. Identify the formal source of credit:

(a) Cooperative societies

(b) Moneylenders

(c) Traders

(d) Landlords

26.

Question 26. Who helps the borrowers to overcome the problem of lack of collateral?

(a) Self-help group (SHG)

(b) State government

(c) Employers

(d) Moneylenders

27.

Question 27. 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

28.

Question 28. Formal sources of credit include

(a) banks

(b) moneylenders

(c) employers

(d) all the above

29.

Question 29. Rate of interest charged by moneylenders as compared to that charged by banks is:

(a) lower

(b) same

(c) slightly higher

(d) much higher

30.

Question 30. Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?

(a) Andhra Pradesh

(b) Tamil Nadu

(c) Kerala

(d) Karnataka

31.

Question 31. Who supervises the credit activities of lenders in the informal sector?

(a) Central Bank of India

(b) Commercial banks

(c) Moneylenders

(d) None

32.

Question 32. At present which form of money is increasingly used apart from paper money?

(a) Commodity money

(b) Metallic money

(c) Plastic money

(d) All the above

33.

Q33. In an SHG most of the decisions regarding savings and loan activities are taken by

A. Bank.

B. Members

C. Non-government organization.

D. None of the above

34.

35.

Q34. In rural areas, the main demand for credit is for …………….

A. Industry

B. Crop production.

C. Irrigation

D. Cultivation

36.

Q35. ………………….is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid?

A. Debt trap

B. Guarantee

C. Collateral

D. Warranty

37.

Q36. Interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called the …………..?

A. Debt trap

B. Terms of credit

C. Guarantee

D. Warranty

38.

Q37. Which organizations arrange formal sector loans?

A. Banks

B. Cooperatives

C. Moneylenders

D. A & B

39.

Q38. 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%

40.

Q39. 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

41.

Q40. ……………..costs of borrowing increase the debt-burden?

A. high

B. low

C. equal

D. none

42.

Q41. What kind of loans do members of SHG take?

A. Individual loans

B. Group loans

C. Society loans

D. None of the above

43.

Q42. RBI sees that the banks give loans not just to profit-making businesses and traders but also to………..?

A. Cooperatives

B. Small scale industries & small borrowers

C. SGH

D. All of the above

44.

Q43. According to the information given on formal and informal loans how much of a loan is taken by the rich household from informal sources?

A. 40%

B. 5%

C. 10%

D. 20%

45.

Q44. 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

46.

Q45. 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

47.

Q46. What is the aim of the loans sanctioned to SHG?

A. To establish industries

B. To establish fisheries

C. To create self-employment opportunities

D. For the development of agriculture

48.

Q47. Surrender of notes to the bank by the government by a specific period and receive new currency notes is called…….

A. Digital banking

B. Banking

C. Demonetisation

D. Monetization

49.

Q48. Give an example of digital banking?

A. Cheque

B. Demand draft

C. Deposit form

D. ATM card

50.

Q49. What is the double coincidence of wants?

A. both parties have to agree to sell and buy each other’s commodities

B. Exchanging commodity for commodity

C. Credit on commodity

D. Loan on commodity till sold further

51.

Q50. What eliminates the need for double coincidence of wants?

A. Credit

B. Debit

C. Money

D. Barter system

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