Ncert- class10-economics-Chapter 3: Money and Credit Welcome to your Ncert- class10-economics-Chapter 3: Money and Credit 1. Co-operation, self help and mutual help are the working principle of : Reserve Bank of India NABARD Co-operative bank Commercial banks None 2. Which of the following statement is correct about 'Money'? Medium of exchange function is one of the most important and oldest function of money With the invention of money, the limitations of barter system could be overcome All of above Money has a generalized purchasing power. None 3. The number of times a unit money exchanges hands during a unit period of time is known as - Income velocity of money Transactions velocity of money Velocity of circulation of money Face of circulation of money None 4. The FRBMA, stands for ____________. Fiscal Responsibility and Budget Management Act Finance Regulations and Bonds Management Association Funds Reallocation and Budget Management Act Foreign Regulation and Budget Management Act None 5. Limitations for the demand of credit are Amount of loan granted should increase the paying capacity of borrower All of the above Bad debts should be avoided Demand should exist in the market None 6. _______ 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. None of above The present value Annuity Interest None 7. Which of the following qualities of money is essential before it can perform any of its function? Stability in value Durability Acceptability Legal sanction None 8. "Money is a matter of functions of four ___________. medium, income, standard and store medium, measure, profit and store medium, measure, standard and store medium, quantity, standard and store None 9. _________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 Ely Alfred Marshall Cournot None 10. Credit creation is Process by which the money is taken by depositors Process where the money is taken by lenders All of the above Process where money is given by banks through loan None 11. Debt- trap occurs due to _____ . inability of the poor to repay back the loans at higher interest to money lenders 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 all of these None 12. Why do you think poor householders require more of these banks? Because moneylenders help them. As credit requirement are more in villages. As the farmers are wealthy. There is greater demand of formal sources of credit. None 13. An annuity left unpaid for a certain number of years is called _________ for that period. uniform annuity forborne annuity immediate annuity deferred annuity None 14. The quantity theory of money seeks to explain the factors that __________. determine the general price level in an economy determine the credit creation process determine the gross domestic product in an economy determine the general national income level in an economy None 15. 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 16. ______, by its very nature, is the most liquid asset. Cash or official currency Cash Commodities Official currency None 17. Which of the following is a legal tender in a modern economy Promissory notes Currency notes Bank cheques Bills of exchange None 18. Because money serves as a medium of exchange, it eliminates The use of commodities as money The need for specialization. The need for a double coincidence of wants the need to write checks. None 19. In a financial transaction, money can be exchanged in the form of _____ . all of these coins cheques currency notes None 20. SHG's help the women and rural poor to become self-reliant ___________. Financially Occasionally Agriculturally Industrially 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.
