Ncert- class10-economics-Chapter 3: Money and Credit Welcome to your Ncert- class10-economics-Chapter 3: Money and Credit 1. In a financial transaction, money can be exchanged in the form of _____ . cheques currency notes all of these coins None 2. The quantity theory of money seeks to explain the factors that __________. determine the credit creation process determine the general price level in an economy determine the general national income level in an economy determine the gross domestic product in an economy None 3. Debt- trap occurs due to _____ . inability of the poor to repay back the loans at higher interest to money lenders all of these in case of crop failure, when the farmer get no return for the capital invested in buying agricultural inputs farmer has to sell a part of his land to repay his loan and has no resources to generate income in the next year None 4. Why do you think poor householders require more of these banks? As the farmers are wealthy. Because moneylenders help them. As credit requirement are more in villages. There is greater demand of formal sources of credit. None 5. The number of times a unit money exchanges hands during a unit period of time is known as - Transactions velocity of money Velocity of circulation of money Face of circulation of money Income velocity of money None 6. _________defines market as, " not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with each other that the prices of the same goods tend to equality easily and quickly". Stonier and Hague Alfred Marshall Cournot Ely None 7. Which of the following qualities of money is essential before it can perform any of its function? Legal sanction Acceptability Stability in value Durability None 8. Because money serves as a medium of exchange, it eliminates The need for a double coincidence of wants The use of commodities as money the need to write checks. The need for specialization. None 9. The FRBMA, stands for ____________. Fiscal Responsibility and Budget Management Act Funds Reallocation and Budget Management Act Finance Regulations and Bonds Management Association Foreign Regulation and Budget Management Act None 10. According to _________, "Market means the general field within which, the force determining the price of particular product operate". Cournot Stonier and Hague Ely Alfred Marshall None 11. SHG's help the women and rural poor to become self-reliant ___________. Financially Occasionally Agriculturally Industrially None 12. _______ of a given sum of money due at the end of a certain period of time is that sum which if invested now at the given rate of interest accumulates to the given sum at the end of the period. The present value Annuity Interest None of above None 13. Credit creation is All of the above Process by which the money is taken by depositors Process where the money is taken by lenders Process where money is given by banks through loan None 14. "Money is a matter of functions of four ___________. medium, measure, standard and store medium, quantity, standard and store medium, measure, profit and store medium, income, standard and store None 15. Which of the following is a legal tender in a modern economy Currency notes Bank cheques Bills of exchange Promissory notes None 16. Which of the following statement is correct about 'Money'? Money has a generalized purchasing power. With the invention of money, the limitations of barter system could be overcome Medium of exchange function is one of the most important and oldest function of money All of above None 17. Co-operation, self help and mutual help are the working principle of : Co-operative bank Commercial banks NABARD Reserve Bank of India None 18. An annuity left unpaid for a certain number of years is called _________ for that period. deferred annuity uniform annuity forborne annuity immediate annuity None 19. ______, by its very nature, is the most liquid asset. Cash Commodities Cash or official currency Official currency None 20. Limitations for the demand of credit are Bad debts should be avoided All of the above Demand should exist in the market Amount of loan granted should increase the paying capacity of borrower None Time's up Please Share This Share this content Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Leave a Reply Cancel replyCommentEnter your name or username to commentEnter your email address to commentEnter your website URL (optional) Save my name, email, and website in this browser for the next time I comment.
