CBSE Questions for Class 10 Economics Money And Credit Quiz 5 - MCQExams.com

An annuity left unpaid for a certain number of years is called _________ for that period.
  • deferred annuity
  • uniform annuity
  • forborne annuity
  • immediate annuity
Money includes a host of financial assets. Which of the following is/are included in the financial assets?
  • Land
  • Stocks
  • Bonds
  •  All the above
Positive economic analysis ___________.
  • compares the desirability of alternative government policy outcomes
  • provides a framework within which we can study how some groups are better off than others
  • analyses the sources of improvements in the standard of living that result from favourable government policies.
  • is based on observed cause and effect relationship in the economy
According to new nomenclature ________.
  • $$M_{1}$$ = currency + demand deposits + other deposits with RBI
  • $$M_{1}$$ = Time liabilities
  • $$M_{1}$$ =Term deposits of more than 2 years
  • All the above are true
Raising of margin requirement _______ the borrowing capacity.
  • reduces
  • increases
  • stabilizes
  • none of above
Quantitative measures aim at influencing total volume of credit.
  • True
  • False
Money acts as a means of calculating relative prices of goods & services (True/False).
  • True
  • False
  • Can't Say
  • None of the above
_______ 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.
  • Annuity
  • Interest
  • The present value
  • None of above
Find the rate of interest if the amount owed after $$6$$ months is $$Rs. 1,050$$. The borrowed amount is $$Rs. 1,000$$.
  • $$7$$%
  • $$8$$%
  • $$9$$%
  • $$10$$%
Which of the following is / are non-currency forms of money?
  • Cheques
  • Credit cards
  • Debit cards
  • All of above
Credit creation is
  • Process where money is given by banks through loan
  • Process where the money is taken by lenders
  • Process by which the money is taken by depositors
  • All of the above
Because money serves as a medium of exchange, it eliminates
  • the need to write checks.
  • The need for specialization.
  • The use of commodities as money
  • The need for a double coincidence of wants
Difficulty with barter system was
  • Exchange was difficult due to lack of double coincidence of wants.
  • Credit purchase was difficult as nature of commodity kept changing.
  • Evaluation of the commodity was difficult as the commodities exchanged were different.
  • All of the above
Unlike other invariant physical units of measures kilograms, meter, liters etc., the value of money changes from place to place and over time.
  • True
  • False
  • Partly false
  • None of above
Limitations for the demand of credit are
  • Demand should exist in the market
  • Amount of loan granted should increase the paying capacity of borrower
  • Bad debts should be avoided
  • All of the above
Official currency __________ happens to be the dominant form of money.
  • coins
  • currency notes
  • both coins and currency notes
  • credit cards
Which of the following statement is correct about 'Money'?
  • Medium of exchange function is one of the most important and oldest function of money.
  • Money has a generalized purchasing power.
  • With the invention of money, the limitations of barter system could be overcome.
  • All of above
Most of  the contracts in Germany were made in Swiss Franc or US Dollar in _____.
  • 1923
  • 1823
  • 2003
  • 1993
Money's function as a medium of exchange means that
  • money is a common denominators for expressing the value of goods and services.
  • money can be sued to store wealth.
  • money serves as an acceptable means of payment.
  • money is a standard of deferred payment on exchange contracts extending into the future.
According to _________, "Market means the general field within which, the force determining the price of particular product operate".
  • Alfred Marshall
  • Ely
  • Stonier and Hague
  • Cournot
The quantity theory of money seeks to explain the factors that __________.
  • determine the general national income level in an economy
  • determine the gross domestic product in an economy
  • determine the general price level in an economy
  • determine the credit creation process
Money __________.
  • only consists of paper currency
  • is used only to pay for purchases
  • was once primarily gold and silver coins but now, has evolved to electronic funds transfers.
  • can only be obtained from a teller at a bank.
_________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". 
  • Alfred Marshall
  • Ely
  • Stonier and Hague
  • Cournot
Informal sector loans include _________.
  • NABARD
  • State Bank of India
  • Money lenders
  • Both (A) and (B)
Historically, the Indian rupee was a __________ coin.
  • copper
  • gold
  • silver
  • bronze
Modern forms of money include :
I. Paper notes
II. Gold coins
III. Silver coins.
  • I
  • II
  • III
  • All of the above
______ is the national currency of Germany.
  • Euro
  • Dollar
  • Yen
  • Rupees
______, by its very nature, is the most liquid asset.
  • Cash
  • Official currency
  • Commodities
  • Cash or official currency
Money serves as store of value in the __________.
  • short run
  • long run
  • short run as well as long run
  • none of above
When we say that Money ensures conversion of savings into investment, we are considering the _________ aspect of Money.
  • Static
  • Dynamic
  • Both (a) and (b)
  • Neither (a) nor (b)
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