CBSE Class 10 Social Science Competency Based Questions Money and Credit available here. We have included total 3 set of passage. Each passage has 3 questions. Students who are going to prepare their Board exam please Read the passage below and answer the following questions.
Money and Credit Class 10 Competency Based Questions:
1) Read the passage below and answer the following questions
Modern forms of money include currency — paper notes and coins. Unlike the things that were used as money earlier, modern currency is not made of precious metal such as gold, silver, and copper. And unlike grain and cattle, they are neither of everyday use. The modern currency is without any use of its own.
1.) What was the main issue with the barter system?
a) Achieving double coincidence of wants
b) Transporting goods from one place to another
c) Both of the above
d) None of the above
2.) What are demand deposits?
The money which can be deposited and withdrawn as and when required in the bank are called demand deposits.
3.) Which of the following constitute money in the modern economy?
a) Coins and currency notes
b) Demand deposits
c.) Cheques
d) All of the above
2) Read the passage below and answer the following questions
Banks keep only a small proportion of their deposits as cash with themselves. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day. Since, on any particular day, only some of its many depositors come to withdraw cash, the bank is able to manage with this cash.
a) What is the source of revenue to the banks?
Banks use deposits to meet the loan requirements of the people. Banks offer interest on the deposits but also charges a higher rate of interest on the loans extended. The difference between what is charged from borrowers and what is paid to depositors is their main source of income of the banks.
b.) Banks in India these days hold about _________ of their deposits as cash.
a) 10%
b) 12%
c) 15%
d) 20%
c) Identify the incorrect statements.
a) Modern forms of money include paper notes and coins.
b) In India central government is authorized to issue currency notes.
c) Rupee cannot be refused in settling transactions in India.
d) All are correct.
3) Read the passage below and answer the following questions
In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. There is a minimum stretch of three to four months between the time when the farmers buy these inputs and when they sell the crop. Farmers usually take crop loans at the beginning of the season and repay the loan after harvest. Repayment of the loan is crucially dependent on the income from farming.
1) What is credit?
Credit is known as an agreement in which the lender supplies the borrower with money, goods, or services in return for the promise of future payment. It is also known as loans.
2.) Which are the terms of credit?
The interest rate at which credit is given, collateral and documentation required are known as terms of credit. Collaterals are the asset that borrower owns and uses it as guarantee to a lender until the loan is repaid.
3.) Which of the following can act as collateral?
a) Land and building
b) Vehicle and deposits with banks
c) Livestock
d) All of the above
4.) DIRECTIONS for the question: In each of the questions given below, there are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below:
Assertion(A): Loans are categorized as formal sector loans and informal sector loans.
Reason(R): The central government supervises the functioning of formal sources of loans.
a) A is true but R is false.
b) A is false but R is true.
c) Both A and R are true, and R is the correct explanation of A.
d) Both A and R are true, but R is not the correct explanation of A.
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