What is the name given to the 15 per cent amount of deposits that a commercial bank has to keep in cash for daily withdrawals?

Correct! Wrong!

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The amount that a commercial bank has to be kep in cash for daily withdrawals is called the Cash Reserve Ratio (CRR).

What is series of currency notes is now being used in India?

Correct! Wrong!

The current series of currency notes now being used in India is the Mahatma Gandhi series.

What is the amount of money that commercial banks have to hold in cash as a percentage of the deposits to allow daily withdrawals by its account holders, as per the directives of the Reserve Bank of India?

Correct! Wrong!

According to the directives of the Reserve Bank of India, a commercial bank has to hold in cash 15 per cent of its deposits for daily withdrawals by people. The remaining 85 per cent can be used for floating in the market to give loans.

People try to earn some definite extra income by ____.

Correct! Wrong!

People try to earn some definite extra income by depositing money in banks.

____ are accepted widely as a means of payment.

Correct! Wrong!

Demand deposits are accepted widely as a means of payment, along with currency.

Interest is the money that a bank ____.

Correct! Wrong!

A bank pays interest to its depositors periodically.

A person is said to be in a debt trap when ____.

Correct! Wrong!

A person is said to be in a debt trap when the loan repayment amount exceeds their income.

What is the difference between interest on deposits and interest on loans?

Correct! Wrong!

The rate of interest is more on loans than on deposits.

What do banks do with the money deposited with them?

Correct! Wrong!

Banks give loans out of the deposits they collect from people.

Banks come under the ____ sector of credit.

Correct! Wrong!

Banks come under the formal sector of credit.

Who makes the decisions in a self-help group?

Correct! Wrong!

The decisions in a self-help group are made by its members.

A loan given by a bank is also known as ____.

Correct! Wrong!

A loan given by a bank is also known as 'credit'.

Which sector provides more credit?

Correct! Wrong!

The formal sector provides more credit.

The need for double coincidence of wants was eliminated by ____.

Correct! Wrong!

The need for double coincidence of wants was eliminated by money.

What do you enter while writing out a cheque?

Correct! Wrong!

While writing out a cheque, we have to put the authorised signature.

A bank gives loan to people on certain conditions, which are known as ____.

Correct! Wrong!

A bank gives loan to people on certain conditions, which are known as terms of credit.

Modern currency has value because it is ____.

Correct! Wrong!

Modern currency has value because it is authorised by the government of a country.

After saving regularly, a self-help group becomes eligible for a ____.

Correct! Wrong!

After saving regularly, a self-help group becomes eligible for a bank loan.

Poor people do not go to a bank for credit because the bank ____.

Correct! Wrong!

Poor people do not go to a bank for credit because the bank demands a collateral, which they cannot provide as they do not have it.

Exchange of goods needs ____.

Correct! Wrong!

Exchange of goods or the barter system needs double coincidence of wants. If two people have matching requirements, only then can goods be exchanged.

A demand deposit is the ____.

Correct! Wrong!

A demand deposit provides the facility to withdraw the deposited money whenever needed.

The formal sector of credit in India is under the supervision of ____.

Correct! Wrong!

The formal sector of credit in India is under the supervision of the Reserve Bank of India.

What is the first condition put forward by a bank for a loan?

Correct! Wrong!

A bank always makes sure that it will be able to recover a loan by taking a security against the loan.

Why do people prefer to take loans from a bank?

Correct! Wrong!

People prefer to take loans from a bank because of the lower rate of interest over the long term.

Landlords come under the ____ sector of credit.

Correct! Wrong!

Landlords come under the informal sector of credit.

What was the ancient system to buy and sell goods?

Correct! Wrong!

The barter system was the mechanism for buying and selling in ancient times.

Which of these acts as the medium of exchange?

Correct! Wrong!

Money acts as the medium of exchange.

How many members usually constitute a self-help group?

Correct! Wrong!

The number of members in a self-help group ranges from 15 to 20.

Which of these is true about a cheque?

Correct! Wrong!

A cheque represents money.

What is the term used by a bank for the security that it asks against a loan?

Correct! Wrong!

The term used by a bank for the security it seeks against a loan is "collateral."

CBSE Class 10th Economics 3 - Money and Credit MCQs
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CBSE Class 10th Economics 3 - Money and Credit MCQs