Money And Credit Important Questions and Answers

Money And Credit Important Questions and Answers

For all the students preparing for the Class 10th exam, from time to time we keep providing important information related to it on our website. If you are looking for questions and answers related to Money and Credit of Class 10th Economics, then in today’s post we are providing important questions and their answers related to Money and Credit, Class 10th Economics Chapter 3. Remember them carefully because these questions have been asked earlier in the Class 10th exam and can be asked in the upcoming exams as well.

Question 1. What is currency called?
Answer – The medium through which we buy and sell goods and services is called currency.

Question 2. Write two functions of currency.
Answer – (i) Assisting in buying and selling goods, (ii) Creating liquidity.

Question 3. Currency is used in the barter system. (True/False)
Answer – False.

Question 4. Who issues currency in India?
Answer – Reserve Bank of India.

Question 5. Who guarantees the value of notes ranging from two rupees to one thousand rupees in India?
Answer – The Governor of the Reserve Bank of India.

Question 6. What is a barter system?
Answer – Trading goods without using currency is called a barter system.

Question 7. What is ‘sakh’?
Answer – Creating deposits by banks from the funds deposited with them by people is called ‘sakh’.

Question 8. Between whom does a bank act as an intermediary?
Answer – A bank acts as an intermediary between depositors and borrowers.

Question 9. What are formal loan sources called?
Answer – Formal loan sources that operate under the control of the government (Reserve Bank of India) are called formal loan sources.

Question 10. Give two examples of formal loan sources.
Answer – Banks and cooperative societies.

Question 11. What are informal loan sources called?
Answer – These are loan sources that are not under any form of government control.

Question 12. Give examples of informal loan sources.
Answer – Local moneylenders, agricultural traders, relatives, and friends.

Question 13. What is a debt trap?
Answer – A situation in which the burden of debt increases on the debtor and their situation worsens is called a debt trap.

Question 14. From which source do most poor families take loans?
Answer – They take loans from informal loan sources.

Question 15. From which source do most rich families take loans?
Answer – They take loans from formal loan sources.

Question 16. What is collateral?
Answer – Collateral is property owned by the borrower that they pledge as security for a loan.

Question 17. Write two main functions of commercial banks.
Answer – (1) Accepting deposits from the public, (2) Providing loans to needy people.

Question 18. What is the double coincidence of wants?
Answer – It is when a farmer who makes shoes wants wheat in exchange for shoes, and if the farmer needs shoes and the cobbler has surplus wheat, this is called the double coincidence of wants.

Question 19. What does high cost of borrowing mean?
Answer – High cost of borrowing means that most of the borrower’s income goes towards repaying the loan, leaving less income for themselves.

Question 20. Reserve Bank of India issues 500 rupee notes in India. (True/False)
Answer – True.

Question 21. One rupee notes and coins are issued by the Government of India in India. (True/False)
Answer – True.

Question 22. Why is deposited money called demand deposits in banks?
Answer – Deposited money in bank accounts can be withdrawn on demand, hence it is called demand deposits.

Question 23. Who issues currency notes on behalf of the Central Government of India?
Answer – Reserve Bank of India.

Question 24. How many members should ideally be in an ideal self-help group?
Answer – 15 to 20 members.

Question 25. How does the use of currency facilitate the exchange of goods?
Answer – By using currency, we can easily purchase the goods we need. By selling our items in exchange for the same currency, the seller can buy the necessary items in the market. The currency provides a key role in the necessary combination of the seller and facilitates the understandings helped much Are Transfer

In this post you will find Mudra aur sakh question answer Class 10 Economics Chapter 3 Question Answer Currency and Credit Class 10 Chapter 3 Imp. Questions Class 10 Economics Chapter 3 Currency and Credit Question Answer Currency and Credit Question Answer MCQ Currency and Credit Question Answer extra Class 10 Economics Chapter 3 Question and Answer Very important questions and answers related to Currency and Credit Notes have been given. If you find these questions and answers useful, share them with your friends and if you want to know or ask something regarding this then make sure to ask by commenting below.