Students of class 10 Social Science should refer to MCQ Questions Class 10 Social Science Money and Credit with answers provided here which is an important chapter in Class 10 Social Science NCERT textbook. These MCQ for Class 10 Social Science with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 10 Social Science. The following MCQs can help you to practice and get better marks in the upcoming class 10 Social Science examination

Chapter 3 Money and Credit MCQ with Answers Class 10 Social Science

MCQ Questions Class 10 Social Science Money and Credit provided below have been prepared by expert teachers of grade 10. These objective questions with solutions are expected to come in the upcoming Standard 10 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. Modern form of money is linked with which system ?
(a) Accounts system
(b) Finance system
(c) Banking system
(d) None of the above.

Question. When does credit play a positive role ?
(a) When the loan repayment is not done on time but profits are made.
(b) When neither loan repayment is done on time nor are profits made.
(c) When the loan repayment is done on time and profits are made.
(d) None of the above.

Question. Formal sources of credit does not include
(a) Banks
(b) Cooperatives
(c) Employers

Question. Why is money called the medium of exchange ?  
(a) Goods are being bought and sold with the use of money.
(b) Use of money has made things easier to exchange.
(c) Money acts as an intermediate in the exchange process.
(d) Without exchange of money nobody can fulfil his all needs and requirements.

Question. What are electronic banking services ?
(a) ATM
(b) Debit Card
(c) Credit Card
(d) All of the above.

Question. Who supervises the functioning of formal source of loans ?
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Informal money lenders.

Question. What do people belonging to poor households lack ?
(a) Proper document
(b) Collateral
(c) Certificate of earning
(d) All of the above.

Question. What portions of bank deposits are kept by the banks for day to day transactions ?
(a) 11% of the deposits
(b) 15% of the deposits
(c) 18% of the deposits
(d) 17% of the deposits.

Question. Which one of the following does not come under terms of credit ?
(a) Interest rate
(b) Employment
(c) Collateral
(d) Mode of repayment.

Question. In India which type of currency is widely accepted as a medium of exchange ?
(a) Rupee
(b) Dollar
(c) Shilling
(d) Taka.

Question. In a SHG most of the decisions regarding savings and loan activities are taken by
(a) Bank
(b) Members
(c) Non-government organisation

Question. Currency notes in India are issued by the ….
(a) State Bank of India
(b) Reserve Bank of India
(c) Central Bank of India
(d) None of the above.

Question. Who helps the borrowers to overcome the problem of lack of collateral?       
(a) Self-help group (SHG)
(b) State government
(c) Employers
(d) Moneylenders

Question. What is the main source of income of a bank?        
(a) Bank charges that the depositors pay for; keeping their money safe is the main; source of the bank’s income.
(b) The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.   
(c) Banks earn huge amounts of money by investing the money of the depositors in various company shares.
(d) The Government of India gives huge amounts of money to the banks to help their smooth functioning.

Question. Rate of interest charged by moneylenders as compared to that charged by banks is :   
(a) Lower
(b) Same
(c) Slightly higher
(d) Much higher

Question. What portion of deposits are kept by the banks for their day to day transaction ?   
(a) 10%
(b) 15%
(c) 20%
(d) 25%

Fill in the blanks :

Question. ……… issues currency notes on behalf of the Central Government .

Question. ……… is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Question. ……… costs of borrowing increase the debt-burden.

Question. Majority of the credit needs of the ……… households are met from informal sources.

Question. Banks charge a higher interest rate on loans than what they offer on ………

Match the Columns

Question. Match the correct people involved in a variety of occupations with the appropriate reason they might borrow money for:

Column A	Column B
(a) Auto rickshaw driver	(i) To buy a house
(b) A businessman whose factory has closed down	(ii) To buy a shop of his own
(c) Small trader	(iii) To revive his business
(d) A person in government service	(iv) To buy his own vehicle

Answer :

Column A	Column B
(a) Auto rickshaw driver	(iv) To buy his own vehicle
(b) A businessman whose factory has closed down	(iii) To revive his business
(c) Small trader	(ii) To buy a shop of his own
(d) A person in government service	(i) To buy a house

Assertion-Reason (A-R)

In each of following questions, a statemant of Assertion (A) is given followed by a corresponding statement of Reason (R). Select the correct answer to codes (a), (b) (c) or (d) as given below:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.

Question. Assertion (A) : Not all the money that is deposited in the bank by the depositors is kept by the banks themselves.
Reason (R) : They use it to further extend loans to people, so that the difference between interest earned and interest given can be further invested and the chain will continue to go on.

We hope the above multiple choice questions for Class 10 Social Science for Chapter 3 Money and Credit provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Money and Credit is an important chapter in Class 10 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 10 students. Please go through these and let us know if you have any feedback in the comments section.