X_Economics_Ch-3_Money and Credit_Practice Set - 1

Class X  Economics

Chapter – 3   Money and Credit

Practice Set - 1

Multiple Choice Questions

Q.1: Which one of the following is not an informal sector of credit?

(a) Traders                             (b) LIC

(c) Money Lenders               (d) Employer

Q.2: Grameen Bank is a success story of

(a) India                                 (b) Bangladesh

(c) Nepal                                (d) China

Q.3: Which of the following can be considered as the modern form(s) of money?

(a) Currencies          (b) Drafts        (c) Cheques              (d) All of these

Q.4: Which of the following households constitutes the largest segment of borrowers

in the formal sector of credit?

(a) Poor households           (b) Rich households

(c) Well-off households      (d) Households with few assets

Q.5: Which one of the following authorizes money as a medium of exchange?

(a) Reserve Bank of India              (b) Self Help Groups

(c) The Central Government          (d) The President of India

Q.6 (CBSE 2011): What do you mean by collateral?

(a) It is the total sum of money with a person

(b) It is the things kept in the locker

(c) It is the guarantee given by the lender to the borrower.

(d) It is the security to a lender until the loan is repaid

Q.7: Banks do not give loans:

(a) to small farmers              (b) to marginal farmers

(c) to industries                     (d) without proper collateral and documents

Q.8: The exchange of goods for goods is:

(a) banker of option             (b) bills of exchange

(c) barter                                (d) currency

Q.9: Currency is issued by:

(a) RBI on behalf of central government             (b) By president of India

(c) By finance minister                                            (d) None of them

Q.10: National Sample Survey Organization is:

                     (a)     Commercial bank organization

                     (b)     An organization of World Bank

                     (c)     An organization associated with Indian Standard Institute

                     (d)     An institution responsible to collect data on formal sector credit.

Q.11: Gold mohar, a coin so named was brought in circulation by:

(a) Akbar                                (b) Sher Shah Suri

(c) Ashok                               (d) Shivaji

Q.12: Which agency is not included in informal loan sector or agency:

(a) Bank                                 (b) Village money lender

(c) Trader                               (d) Relative of borrower

Q.13: In SHG most of the decisions regarding savings & loan activities are taken by:

(a) Bank                                                         (b) Members

(c) Non-government organizations           (d) LIC

Q.14: Formal sources of credit does not include:

(a) Banks                   (b) Co-operatives     (c) Employers            (d) LIC

Q.15: Security (pledge, mortgage) against loan:

(a) Collateral    (b) Token Coins    (c) Promissory Note    (d) Currency

Q.16: A payment made by account payee cheque means

(a) anyone can present the cheque and get payment from the bank

(b) only drawee can deposit the cheque and get credit in his bank account

(c) the cheque can be given by the drawee to third party who can get credit in his account.

(d) none of these

Q.17: There is restriction of withdrawing money in a

(a) savings account                         (b) current account

(c) fixed deposit account                (d) none of these

Q.18: Interest payment will be higher on a house loan on account of

(a) high tenure of loan                    (b) high rate of interest

(c) high risk of borrower profile      (d) all of these

Q.19: More money chasing less goods and services means

(a) Inflation                                        (b) deflation

(c) Stagflation                                   (d) none of these

Q.20: Formal sources of credit comes from

(a) landlord                                        (b) relatives or friends

(c) commercial banks                      (d) businessmen

Q.21: Which system has been replaced by ‘Money’ as a medium of exchange?

(a) Exchange System                      (b) Commodity System

(c) Barter System                              (d) Double coincidence of wants.

Q.22: Which of the following does not come under modern forms of money?

          (a) Currency  (b) Cheque Payments  (c) Demand deposits  (d) Loan Payments

Q.23: Informal sources of credit does not include

          (a) traders        (b) relatives and friends      (c) employers            (d) cooperatives

Q.24: SHGs stands for

(a) Self House Groups                    (b) Self Help Groups

(c) Society Help Groups                  (d) Social Help Groups

Q.25: In Sonpur village, everyone is not able to get credit from a bank because

(a) they don't want to take a bank loan

(b) banks demand collateral which everyone cannot provide

(c) interest rate on bank loans are high

(d) none of the above