Practice Questions with Answers - Multiple Choice Questions

MCQ Questions for Class 10 Economics Chapter 3 Money and Credit

MCQ Questions for Class 10 Economics Chapter 3 Money and Credit

 

Question 1.
Farmers usually take crop loans at the beginning of the season and repay the loan after:
(a) Sowing
(b) Tilling
(c) Harvesting
(d) All the above

Answer

Answer: (c) Harvesting
After harvesting.


Question 2.
Credit sometimes, pushes the borrower to a situation from which recovery is:
(а) Easy
(b) Hard
(c) Very painful
(d) None of the above

Answer

Answer: (c) Very painful
To a condition which is very painful.


Question 3.
Sometimes lenders demand against loan:
(a) Payment
(b) Cheque
(c) Draft
(d) Collateral

Answer

Answer: (d) Collateral
Collateral is the security which lenders demand against loans.


Question 4.
Interest rate, security and documentation requirement, and the mode of repayment together comprise what is called the:
(a) Loan factor
(b) Credit factor
(c) Terms of loan
(d) Terms of credit

Answer

Answer: (d) Terms of credit
All are terms of credit.


Question 5.
Loans from banks and cooperatives are called:
(a) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loan

Answer

Answer: (c) Formal loans
They are called formal loans.


Question 6.
Loans from moneylenders, traders, employers, relatives and friends are called:
(а) Mixed loans
(b) Term loans
(c) Formal loans
(d) Informal loans

Answer

Answer: (d) Informal loans
They are called informal loans.


Question 7.
The RBI monitors the banks are actually maintaining:
(а) Cash books
(b) Cash balance
(c) Cash register
(d) None of the above

Answer

Answer: (b) Cash balance
The RBI monitors the banks are actually maintaining cash balance.


Question 8.
Most of the informal lenders charge:
(a) A less interest on loans
(b) A much higher interest on loans
(c) Can be both (a) and (b)
(d) None of the above

Answer

Answer: (b) A much higher interest on loans
Most of the informal lenders charge a much higher interest on loans.


Question 9.
The rich households are availing cheap credit from formal lenders whereas the poor households:
(a) Do not get a loan
(b) Get loan at a much less interest
(c) Have to pay a heavy price for borrowing
(d) None of the above

Answer

Answer: (c) Have to pay a heavy price for borrowing
The poor households do not have papers and thus, have to pay a heavy price for borrowing.


Question 10.
Cheap and affordable credit is crucial for:
(а) The development of urban areas
(b) The development of rural areas
(c) The country’s development
(d) All the above

Answer

Answer: (c) The country’s development
For the country’s development.