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

MONEY AND CREDIT QUIZ

All questions are compulsory.

Time left: 10:00

21. What makes formal sources of credit better than informal ones?

a. Low interest and legal safety
b. Strict repayment
c. High interest rate
d. No documentation

22. What is the main source of income for banks?

a. Deposits
b. Loan interest difference
c. Cheque facility
d. Selling property

23. What is the loan given by a bank for a house purchase called?

a. Education loan
b. Personal loan
c. Home loan
d. Vehicle loan

24. What is the purpose of SHGs?

a. Promote corruption
b. Help the rich
c. Create banks
d. Provide cheap credit

25. Who benefits most from informal credit sources?

a. Government
b. Borrower
c. Banks
d. Moneylender

26. Why are SHGs mostly formed by women?

a. Women don’t work
b. Women are good savers
c. Women don’t need money
d. Only women get bank loans

27. What is the ideal interest rate for poor borrowers?

a. 40%
b. 20%
c. 12%
d. Low interest rate

28. Which of the following is a benefit of formal sector loan?

a. Harassment
b. High interest
c. Legal support
d. Long process only

29. A person who saves regularly and can borrow small amounts belongs to:

a. RBI
b. Commercial Bank
c. SHG member
d. Government officer

30. Match the following:
A. SHG → (i) Women savings group
B. Collateral → (ii) Land, documents
C. Informal lender → (iii) Moneylender
D. RBI → (iv) Monitors bank functions

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