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Important Questions (1 Mark): Money & Credit - Class 10


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20 Questions MCQ Test Social Studies (SST) Class 10 - Important Questions (1 Mark): Money & Credit

Important Questions (1 Mark): Money & Credit for Class 10 2023 is part of Social Studies (SST) Class 10 preparation. The Important Questions (1 Mark): Money & Credit questions and answers have been prepared according to the Class 10 exam syllabus.The Important Questions (1 Mark): Money & Credit MCQs are made for Class 10 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Important Questions (1 Mark): Money & Credit below.
Solutions of Important Questions (1 Mark): Money & Credit questions in English are available as part of our Social Studies (SST) Class 10 for Class 10 & Important Questions (1 Mark): Money & Credit solutions in Hindi for Social Studies (SST) Class 10 course. Download more important topics, notes, lectures and mock test series for Class 10 Exam by signing up for free. Attempt Important Questions (1 Mark): Money & Credit | 20 questions in 20 minutes | Mock test for Class 10 preparation | Free important questions MCQ to study Social Studies (SST) Class 10 for Class 10 Exam | Download free PDF with solutions
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Important Questions (1 Mark): Money & Credit - Question 1
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System of exchanging goods for goods is called :

Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 1

The correct answer is C as System of exchanging goods for goods is called barter system. Moreover this system prevailed in old times

Important Questions (1 Mark): Money & Credit - Question 2
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Money

Important Questions (1 Mark): Money & Credit - Question 3
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At present which form of money is increasingly used apart from paper money ?

Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 3

Plastic money is a term used to represent the hard plastic cards used in day to day life in place of actual banknotes. They come in several forms such as debit cards, credit cards, store cards and pre-paid cash cards.

Important Questions (1 Mark): Money & Credit - Question 4
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What are the modern forms of money ?
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 4
Currency
As the need for a medium of exchange became a necessity different materials were used as a medium of exchange. Initially Indians used grains and cattle as money. Before the introduction of coins, a variety of objects was used as money. Thereafter came the use of metallic coins — gold, silver, copper coins — a phase which continued well into the last century. As time progressed, trade increased and a global market was created. With the global market came the need for a more convenient medium of exchange. Thus was born the modern forms of money - paper notes (currency) and coins. Modern currency is not made of precious metal such as gold, silver and copper. And unlike grain and cattle, they are neither of every day use. The modern currency is without any use of its own. Still, it is accepted as a medium of exchange because the currency is authorized by the government of the country.

Deposits with banks
At a point of time, people need only some currency for their day-to-day needs. So people deposit the extra money with the banks by opening a bank account in their name. Banks accept the deposits and also pay an interest rate on the deposits.
In this way people’s money is safe with the banks and it earns an interest. People also have the provision to withdraw the money as and when they require. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits.

Plastic Money
Plastic Money consists in a shape of Master card, debit card, credit card and ATM card. The basic purpose of plastic Money is to facilitate the People easily and quickly in case of Cash/Money Transaction.
Important Questions (1 Mark): Money & Credit - Question 5
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Terms of credit are with respect to :
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 5

The mode through which the borrower will repay the loan must be clearly mentioned. Interest rate, collateral and documentation requirement and the mode of repayment together comprise what is called the terms of credit.

Important Questions (1 Mark): Money & Credit - Question 6
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Credit or loan refers to an agreement between :
Important Questions (1 Mark): Money & Credit - Question 7
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The formal sector meets only about _____ of the credit needs of rural people :
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 7

A is the correct option.The formal sector still meets only about half(so 52%) of the total credit needs of the rural people. The remaining credit needs are met from informal sources.

Important Questions (1 Mark): Money & Credit - Question 8
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The part of the total deposits which a bank keeps with itself in cash is
Important Questions (1 Mark): Money & Credit - Question 9
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An asset that the borrower uses as a repayment guarantee to a lender is termed as a :
Important Questions (1 Mark): Money & Credit - Question 10
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Currency is issued in India by :
Important Questions (1 Mark): Money & Credit - Question 11
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Who supervises the credit activities of lenders in the informal sector ?
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 11

The Reserve Bank of India supervises the functioning of formal sources of loans. In contrast, there is no organization which supervises the credit activities of lenders in the informal sector. Loans taken by poor people from informal lenders sometimes, lead them to debt-trap because of high interest rate.
Hence, the correct answer is 'None'.

Important Questions (1 Mark): Money & Credit - Question 12
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Rich households in urban areas avail cheap credit from
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 12
Rich households know about the formal loans. and they know that formal loans have less interest rates. so they avail the facility.
whereas the poor and the needy. do not know about the benefits of formal loans over informal ones and they are fooled by these thinkings.

The most important point is that for formal loans collateral and some guarantees have to be shown which the poor lack so they are unable to avail the formal sector of credit.
Important Questions (1 Mark): Money & Credit - Question 13
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Productive loans by farmers are taken
Important Questions (1 Mark): Money & Credit - Question 14
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Which of the following is not a source of rural credit ?
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 14

The correct option is D.
RURAL CREDIT - NON INSTITUTIONAL AND - INSTITUTIONAL SOURCES The credit requirements of Indian farmers are met by many agencies. They constitute money lenders, trades, commission agents, land lords, relatives, commercial banks, cooperatives etc.

Important Questions (1 Mark): Money & Credit - Question 15
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Rate of interest charged by moneylenders as compared to that charged by banks is :
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 15

D is the correct option.A moneylender's loan will generally have a higher APR (Annual Percentage Rate) than a loan from a credit union or a bank. The APR will be at least 23% and may be much more in some cases.

Important Questions (1 Mark): Money & Credit - Question 16
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Regional Rural Banks were set up in ________.
Important Questions (1 Mark): Money & Credit - Question 17
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A Self-Help Group usually has :
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 17

A SHG (self help group) is a community based group with 10-20 members. They are usually women from similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis.

Important Questions (1 Mark): Money & Credit - Question 18
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When was the KCC (Kisan Credit Card) scheme introduced ?
Detailed Solution for Important Questions (1 Mark): Money & Credit - Question 18

C is the correct option.The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc.

Important Questions (1 Mark): Money & Credit - Question 19
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Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
Important Questions (1 Mark): Money & Credit - Question 20
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_________ are widely accepted as a medium of exchange.
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