CLASS-X QUIZ 1: ECONOMICS LESSON 3 : MONEY AND CREDIT

Money and Credit Quiz

All questions are compulsory.

Time left: 10:00

1. What is the primary function of money in an economy?

a. Medium of exchange b. Means of entertainment c. Source of income d. Store of goods

2. Which of the following is an example of modern currency?

a. Gold b. Cattle c. Coins and notes d. Grains

3. Assertion (A): Demand deposits can be used as money.
Reason (R): They are accepted widely as a medium of exchange.

a. A is true, R is true and R is the correct explanation of A b. A is true, R is true but R is not the correct explanation of A c. A is true, R is false d. A is false, R is true

4. Which institution issues currency in India?

a. SBI b. Ministry of Finance c. NABARD d. Reserve Bank of India

5. Match the following:

A. Collateral → (i) Modern currency
B. Rupee → (ii) Loan guarantee
C. Cheque → (iii) Paper instruction to bank
D. Digital payment → (iv) Online transaction

a. A–ii, B–i, C–iii, D–iv b. A–i, B–ii, C–iv, D–iii c. A–iv, B–ii, C–i, D–iii d. A–iii, B–iv, C–ii, D–i

6. What is a cheque?

a. Currency note b. Promise note c. Instruction to bank d. Coin

7. What do banks do with the deposits they receive?

a. Lock it in a vault b. Invest in gold c. Use for lending d. Burn excess money

8. Which of the following is an informal source of credit?

a. Bank b. Post office c. Cooperative Society d. Moneylender

9. Which of the following institutions supervises the functioning of banks?

a. SBI b. NABARD c. RBI d. Finance Ministry

10. Assertion (A): Poor households often take loans from moneylenders.
Reason (R): They lack proper documents and collateral.

a. A and R both are true, and R is the correct explanation b. A and R both are true, but R is not the correct explanation c. A is true, R is false d. A is false, R is true