MCQ: Money and Credit, Class X

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

A) Cooperative societies
B) Trader
C) Money lender
D) Friends and Relatives

... Answer is A)

2.Which of the following is not a feature of Self Help Groups (SHGs)?

A) Here members pool their savings which acts as collateral.
B) It consists of 15-20 members or more.
C) It is an informal source of credit.
D) Loans are given at nominal rate of interest.

... Answer is C)

3.Organised credit is also called

A) Formal credit
B) Informal credit
C) Both (a) and (b)
D) Neither (a) nor (b)

... Answer is A)

4.Which one of the following is the appropriate meaning of collateral?

A) The amount borrowed from friends.
B) It is an asset of the borrower used as guarantee to a lender.
C) It is the sum total of money
D) The amount invested in a business.

... Answer is B)

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

A) Cooperative Banks
B) Grameen Bikash Banks
C) Self-Help Groups
D) Trader

... Answer is C)

6.Banks use the major portion of the deposits to:

A) Give loans
B) Deposits in RBI
C) Deposits in foreign banks
D) Investment in infrastructure

... Answer is A)

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

A) Money economy
B) Global economy
C) Barter economy
D) None of these

... Answer is C)

8.Double coincidence of wants means ____________.

A) What a person desires to sell is exactly what the other person wishes to buy.
B) What a person desires to sell is exactly what the other person also wishes to sell.
C) What a person desires to buy is exactly what the other person also wishes to buy.
D) What a person wants to buy by paying through money.

... Answer is A)

9. Since money acts as an intermediate in the exchange process, it is called

A) Medium of trade
B) Medium of exchange
C) Medium of transaction
D) Medium of business

... Answer is B)

10. ..........refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

A) Debit
B) Credit
C) Trade
D) Cash transaction

... Answer is B)

11.People also have the provision to withdraw the money as and when they require. It is called

A) Fixed deposit
B) Saving deposit
C) Current deposit
D) Both (b) and (c)

... Answer is D)

12.At present which form of money is increasingly used apart from paper

A) Commodity money
B) Metellic money
C) Full bodied money
D) Plastic money

... Answer is D)

13. All the banks act as mediator between _________ and _________.

A) Rural people, urban people
B) People, government
C) Depositors, borrowers
D) None of these

... Answer is C)

14._____________ issue currency notes on behalf of the Central Government.

A) Commercial Banks
B) NABARD
C) RBI
D) SBI

... Answer is C)

15.GDP is the total value of __________ produced during a particular year.

A) all goods and services
B) all final goods and services
C) all intermediate goods and services
D) all intermediate and final goods and services

... Answer is B)
GDP= GROSS DOMESTIC PRODUCT

16. Grameen Bank of Bangladesh was started on:

A) 1960
B) 1970
C) 1980
D) 1990

... Answer is B)

17.______________ supervises the functioning of formal sources of loans.

A) COMMERCIAL BANKS
B) GOVERNMENT
C) NABARD
D) RBI

... Answer is D)

18.Formal sources of credit does not include

A) Banks
B) Self-Help Groups
C)Traders
D) Cooperatives

... Answer is C)

19.Which of the following is not informal source of credit

A) Relatives
B) Employers
C) Money lenders
D) SHG

... Answer is D)
SHG= SELF-HELP GROUP

20.In a SHG, most of the decisions regarding savings and loan activities are taken by:

A) Bank
B) Members of SHG
C) Non Government organisation
D) Government

... Answer is B)