Question Paper
Class / Subject: Class 10 (CBSE) · Social Science
Chapter: Chapter 20 — Chapter 20: Money and Credit
Time Allowed: 32 minutes
Max Marks: 16
1. What are the three main functions of money? [1]
(A) Medium of exchange, unit of account, store of value
(B) Only medium of exchange
(C) Only unit of account
(D) Only store of value
2. What does money as a medium of exchange eliminate? [1]
(A) The need for barter
(B) The need for banks
(C) The need for prices
(D) The need for trade
3. What does money as a unit of account provide? [1]
(A) A standard way to measure value
(B) No specific benefit
(C) Only physical currency
(D) Only digital records
4. What does money as a store of value allow? [1]
(A) Saving purchasing power for future use
(B) Immediate spending only
(C) No saving possible
(D) Only borrowing, not saving
5. What do modern economies rely on to manage money? [1]
(A) Banking systems
(B) No specific system
(C) Only barter systems
(D) Only cash transactions
6. What do banks provide besides managing money? [1]
(A) Credit
(B) Only storage, nothing else
(C) No other services
(D) Only entertainment
7. What role does money play in economic growth? [1]
(A) An essential role, facilitating transactions
(B) No role at all
(C) Only a minor, insignificant role
(D) A negative role, hindering growth
8. Why is understanding money's role important? [1]
(A) It shows how modern economies function
(B) No reason
(C) Only for tests
(D) It's not useful
9. What is an example of a formal credit source? [1]
(A) A bank
(B) A moneylender
(C) A relative
(D) A local trader
10. What is an example of an informal credit source? [1]
(A) A moneylender
(B) A cooperative bank
(C) A regulated bank
(D) A government financial institution
11. Who regulates formal credit sources in India? [1]
(A) The Reserve Bank of India
(B) No one regulates them
(C) Only local governments
(D) Only private companies
12. What do formal credit sources typically offer? [1]
(A) Lower interest rates and legal protections
(B) Higher interest rates always
(C) No protections at all
(D) No access to loans
13. What do informal credit sources typically charge? [1]
(A) Much higher interest rates
(B) Lower interest rates always
(C) No interest at all
(D) Fixed government rates
14. Why might people rely on informal credit? [1]
(A) Limited access to formal banking
(B) They always prefer higher interest rates
(C) Formal credit is always easier to access
(D) No reason exists
15. What do government efforts aim to increase? [1]
(A) Formal credit availability
(B) Informal credit dependence
(C) No changes to the credit system
(D) Only urban credit access
16. What is microfinance? [1]
(A) Small loans aimed at expanding formal credit access
(B) A type of large corporate loan
(C) A type of stock market investment
(D) A tax scheme