CBSE Class 10 Social Science Economics Money and Credit Quiz 2

1. Which among the following banks issues currency notes on behalf of the Central Government in India?

A RBI B State Bank of India C Bank of India D Central Bank of India

2. What do the banks do with the deposits which I they accept from the customers?

A Banks use these deposits for charitable activities. B Banks use a major portion of deposits to extend loans. C Banks use deposits to give bonus to their employees. D Banks use deposits to set up more branches in the country.

3. 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.

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

A Debt B Deposit C Credit D Collateral

5. Which body (authority) supervises the functioning of formal sources of loans?

A Finance Ministry B Head Office of each Bank C Reserve Bank D Cooperative Societies

6. Money-lenders usually demand a 'security' from the borrower. What is the formal word used for the 'security', such as land, vehicle, livestock, building, etc.?

A Deposit B Collateral C Credit D Guarantee

7. Which among the following options will be the cheapest source of credit in rural areas?

A Bank B Cooperative Society C Money-lender D Finance Company

8. 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

9. A typical Self Help Group usually has

A 100-200 members B 50-100 members C less than 10 members D 15-20 members

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

A Money-lender B Relatives and Friends C Commercial Banks D Traders