CBSE Class 10 Social Science Economics Money and Credit Quiz 1

1. Which one of the following statements is most appropriate regarding transaction made in money?

A It is the easiest way. B It is the safest way. C It is the cheapest way. D It promotes trade.

2. Which one of the following is a modem form of currency?

A Gold B Silver C Copper D Paper notes

3. Which among the following authorities issues currency notes on behalf of the government?

A Government of India B The State Bank of India C National Bank for Agriculture and Rural Development D Reserve Bank of India

4. In which of the following systems exchange of goods is done without use of money?

A Credit system B Barter system C Banking system D Collateral system

5. Banks provide a higher rate of interest on which of the following accounts?

A Saving account B Current account C Fixed deposits for long period D Fixed deposits for very short period

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

A Keep as reserve so that people may withdraw B Meet their routine expenses C Extend loans D Meet renovation of bank

7. What percentage of their deposits is kept as cash by the banks in India?

A 25% B 20% C 15% D 10%

8. The informal source of credit does not include which one of the following?

A Traders B Friends C Cooperative Societies D Moneylenders

9. Which one of the following is the new way of providing loans to the mral poor?

A Because the currency is authorised by the government of the country. B Because it is liked by the people who use it. C Because the use of currency has its origin in ancient times. D Because the currency is authorised by the World Bank.

10. Who issues the currency notes in India?

A Currency notes are issued by the Finance Commission. B All the nationalized banks can issue the currency notes. C Only Reserve Bank of India can issue currency notes. D Any individual or organization can issue cur¬rency notes with the permission of the govt.