Below you will find MCQ Questions of Chapter 3 Money and Credit Class 10 Economics Free PDF Download that will help you in gaining good marks in the examinations and also cracking competitive exams. These Class 10 MCQ Questions with answers will widen your skills and understand concepts in a better manner. MCQ Questions for Class 10 Economics Chapter 3 Money and Credit with answers 1. Credit or loan refers to an agreement between : (a) lender and borrower (b) consumer and producer (c) government and tax payer (d) all the above ► (c) government and tax payer 2. System of exchanging goods for goods is called : (a) monetary system (b) credit system (c) barter system (d) exchange system ► (c) barter system 3. At present which form of money is increasingly used apart from paper money? (a) Commodity money (b) Metallic money (c) Plastic money (d) All the above ► (c) Plastic money 4. The part of the total deposits which a bank keeps with itself in cash is (a) zero (b) a small proportion (c) a big proportion (d) 100 percent ► (b) a small proportion 5. Terms of credit are with respect to : (a) interest rate (b) collateral (c) documentation (d) All of the above ► (d) All of the above 6. Regional Rural Banks were set up in ________. (a) 1969 (b) 1979 (c) 1989 (d) 1999 ► (a) 1969 7. An asset that the borrower uses as a repayment guarantee to a lender is termed as a : (a) deposit (b) collateral (c) advance (d) all the above ► (b) collateral 8. Who supervises the credit activities of lenders in the informal sector? (a) Central Bank of India (b) Commercial banks (c) Moneylenders (d) None of the above ► (d) None of the above 9. _____ are widely accepted as a medium of exchange. (a) Rupee notes (b) Gold coins (c) Silver coins (d) All the above ► (a) Rupee notes 10. Rich households in urban areas avail cheap credit from (a) formal sources (b) informal sources (c) government (d) All of the above ► (a) formal sources 11. Which of the following is not a source of rural credit? (a) Regional rural banks (b) Moneylenders (c) Traders (d) Government ► (d) Government 12. Who supervises the functioning of formal sources of loans? (a) RBI (Reserve Bank of India) (b) Central government (c) State government (d) None of the above ► (a) RBI (Reserve Bank of India) 13. Which of the following is not a modern form of money? (a) Paper notes (b) Demand deposits (c) Silver coins (d) None of the above ► (c) Silver coins 14. What do you mean by collateral? (a) It is the total sum of money with a person (b) It is the things kept in the locker (c) It is the guarantee given by the lender to the borrower. (d) It is the security to a lender until the loan is repaid ► (c) It is the guarantee given by the lender to the borrower. 15. Which of the following is not true regarding the in convenience of Barter Exchange ? (a) Lack of double coincidence of want (b) Absence of divisibility (c) Difficulty in storing wealth (d) Availability of money as a medium of exchange. ► (d) Availability of money as a medium of exchange. 16. Which one of the following is the important characteristic of modern form of currency? (a) It is made from precious metal (b) It is made from thing of everyday use (c) It is authorised by the commercial banks (d) It is authorised by the Government of the country ► (d) It is authorised by the Government of the country Hope the given MCQ Questions will help you in cracking exams with good marks. These Money and Credit MCQ Questions will help you in practising more and more questions in less time.