Class 10 Social Science Chapter 3: Money and Credit — practice questions with answers
Free practice for Class 10 Social Science, Chapter 3: Money and Credit. Try the solved questions below, then take a free test with instant marking and explanations.
42 questions16 easy, 20 medium, 6 hardNCERT · CBSE · State boards
Sample questions with solutions
Q1. Money acts as an intermediate in the exchange process. This function is called ______.
- medium of exchange
- store of value
- unit of account
- standard of deferred payment
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Answer: A. medium of exchange
Why: It removes the need for double coincidence of wants. [p.39]
Why: It removes the need for double coincidence of wants. [p.39]
Q2. In a barter system, when both parties have to agree to sell and buy each other's commodities, it is called double ______ of wants.
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Answer: coincidence
Why: Money eliminates this problem. [p.39]
Why: Money eliminates this problem. [p.39]
Q3. Who issues currency notes in India on behalf of the central government?
- Reserve Bank of India
- State Bank of India
- Ministry of Finance only
- Commercial banks
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Answer: A. Reserve Bank of India
Why: No other individual or organisation can issue currency. [p.38]
Why: No other individual or organisation can issue currency. [p.38]
Q4. Deposits in bank accounts that can be withdrawn on demand are called ______.
- demand deposits
- fixed deposits
- collateral
- currency
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Answer: A. demand deposits
Why: They share the essential features of money. [p.38]
Why: They share the essential features of money. [p.38]
Q5. An asset that a borrower owns (land, building, livestock) and uses as a guarantee to a lender is called ______.
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Answer: collateral
Why: The lender can sell it if the loan is not repaid. [p.44]
Why: The lender can sell it if the loan is not repaid. [p.44]
Q6. Who founded the Grameen Bank of Bangladesh and won the Nobel Peace Prize in 2006?
- Professor Muhammad Yunus
- Amartya Sen
- Raghuram Rajan
- Abhijit Banerjee
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Answer: A. Professor Muhammad Yunus
Why: Grameen Bank lends to poor women. [p.52]
Why: Grameen Bank lends to poor women. [p.52]
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How many practice questions are there for Class 10 Social Science Chapter 3: Money and Credit?
42 questions (16 easy, 20 medium, 6 hard). A few are solved on this page; the free test shows the answer and explanation for every question after you submit.
Is this chapter from the NCERT book?
Yes — it follows the NCERT Class 10 Social Science syllabus, used by CBSE and many state boards.