CBSE Economics Money and Credit Class 10 MCQ

Money is an important topic in economics. It runs all the aspects of modern civilisation. It has an immense effect on the daily lives of common people, as well as the economy of a country. Class 10 Social Science Money and Credit is an interesting chapter that explains how a country's economy and banking system depends on the concept of money and credit.

Here is the list of topics covered in this chapter.

• Money as the modern medium of exchange

• The modern form of money

• Various financial activities of banks

• Credit situations

• Terms related to credit

• Formal and informal sectors of Credit in India

• Self-help groups for the poor and their advantages

These topics are quite important to study to develop your basic concepts related to money and credit. The introduction to the concept of money and how it changed over time is interesting to study. Complete studying each topic and make a short note. These notes will help you prepare the chapter faster.

When you have done studying the topics, solve the exercise questions in the textbook. Seek help from the NCERT solutions if required and resolve all your doubts. Focus on marking the important concepts and information in the chapter. This step will help you to solve the MCQs.

After studying this chapter, download the Money and Credit Class 10 MCQ with answers. Solve these questions to test your skills and add the following advantages to your Social Science preparation.

CBSE Class 10 Economics Chapter 3 Money and Credit MCQs with Answers 

1. What is money?

A) A medium of exchange

B) A store of value

C) A unit of account

D) All of the above

Answer: D) All of the above

2. What is the difference between money and credit?

A) Money is a loan, while credit is a form of payment

B) Money is a physical entity, while credit is a virtual entity

C) Money is a medium of exchange, while credit is a promise to pay

D) Money is a store of value, while credit is not

Answer: C) Money is a medium of exchange, while credit is a promise to pay

3. What is a credit transaction?

A) A transaction where money is exchanged for goods or services

B) A transaction where goods or services are exchanged for goods or services

C) A transaction where money is lent in exchange for future repayment

D) A transaction where goods or services are lent in exchange for future repayment

Answer: C) A transaction where money is lent in exchange for future repayment

4. What is collateral?

A) An asset that is pledged as security for a loan

B) A type of currency used in ancient times

C) A form of insurance for loans

D) A type of bond issued by the government

Answer: A) An asset that is pledged as security for a loan

5. What is the Reserve Bank of India?

A) The central bank of India

B) The largest commercial bank in India

C) A government agency that regulates the stock market

D) An international organisation that promotes economic development

Answer: A) The central bank of India

6. What is a credit score?

A) A measure of a person's ability to repay a loan

B) The interest rate charged on a loan

C) The amount of money borrowed in a loan

D) The duration of a loan

Answer: A) A measure of a person's ability to repay a loan

7. What is the interest rate?

A) The rate at which money is exchanged for goods or services

B) The rate at which money is lent or borrowed

C) The rate at which currency is exchanged

D) The rate at which goods or services are produced

Answer: B) The rate at which money is lent or borrowed

8. What is the difference between secured and unsecured loans?

A) Secured loans are guaranteed by collateral, while unsecured loans are not

B) Secured loans have lower interest rates than unsecured loans

C) Secured loans are easier to obtain than unsecured loans

D) Secured loans do not have to be repaid, while unsecured loans do

Answer: A) Secured loans are guaranteed by collateral, while unsecured loans are not

9. What is inflation?

A) A decrease in the general price level of goods and services

B) An increase in the general price level of goods and services

C) A decrease in the money supply

D) An increase in the money supply

Answer: B) An increase in the general price level of goods and services

10. What is deflation?

A) A decrease in the general price level of goods and services

B) An increase in the general price level of goods and services

C) A decrease in the money supply

D) An increase in the money supply

Answer: A) A decrease in the general price level of goods and services

11. What is a debtor?

A) A person who lends money

B) A person who owes money

C) A person who invests money

D) A person who saves money

Answer: B) A person who owes money

12. What is a creditor?

A) A person who lends money

B) A person who owes money

C) A person who invests money

D) A person who saves money

Answer: A) A person who lends money

13. What is barter?

A) A system of exchanging goods or services for other goods or services without using money

B) A type of currency used in ancient times

C) A government agency that regulates the stock market

D) An international organization that promotes economic development

Answer: A) A system of exchanging goods or services for other goods or services without using money

14. What is the role of commercial banks in the economy?

A) To issue currency

B) To regulate the stock market

C) To provide loans and other financial services to individuals and businesses

D) To promote economic development

Answer: C) To provide loans and other financial services to individuals and businesses

15. What is the difference between cash credit and overdraft?

A) Cash credit is a short-term loan, while overdraft is a long-term loan

B) Cash credit is secured by collateral, while overdraft is not

C) Cash credit is available to individuals, while overdraft is available to businesses

D) Cash credit is a credit limit, while overdraft is an extension of credit beyond the credit limit

Answer: D) Cash credit is a credit limit, while overdraft is an extension of credit beyond the limit.

Advantages of Solving CBSE Class 10 Social Science Chapter 3 Money and Credit MCQs

Proper Understanding of Concepts

Solving MCQs need a proper understanding of the concepts. Only those who have exceptional clarity in this chapter can solve the MCQs accurately. Hence, you can test your concept clarity by solving these MCQs. If you can answer all the questions correctly, you have prepared this chapter perfectly.

If you find your knowledge not enough to choose the right answer, then you must give more attention to this chapter. Answering MCQs is different from descriptive questions. You will score full or none in an MCQ. Hence, your understanding of the concepts will govern the outcomes.

Test your Answering Skills

MCQs test multiple skills of students. This section checks your accuracy level, recollection power, memory, problem-solving and analytical skills. The options given in each MCQ are quite close to each other. It is tough to choose the correct option when you don’t know the information accurately.

Solving MCQs thus confirms your various academic skills. Such skills are needed at different academic levels and even in real life. Practise solving MCQs more to sharpen these skills and learn to score more in the exams.

Fill your Preparation Gaps

Check which questions you are unable to answer or facing difficulty to solve. These questions will depict which topics of this chapter need more attention. Solving MCQs will help you identify the preparation gaps. All you have to do is to revise the chapter and focus more on these topics. This is the best way to make your preparation stronger for this chapter.

Download CBSE Class 10 Social Science Chapter 3 Money and Credit MCQs

Study this chapter well and download the Money and Credit Class 10 MCQ PDF for free. Complete preparing this chapter by solving the MCQs at home and add these benefits to your Social Science preparation. Study the topics well and practise answering this type of question to increase your confidence. Grasp the context and concepts of this chapter and stay ahead of the competition.