CBSE Questions for Class 10 Economics Money And Credit Quiz 6 - MCQExams.com

Which of the following qualities of money is essential before it can perform any of its function?
  • Durability
  • Stability in value
  • Legal sanction
  • Acceptability
Which of the following is not considered as a kind of money in a modern economy?
  • Coins
  • Currency notes
  • Wheat
  • Bank money
Banks lend money mainly for ___________.
  • industrial purposes 
  • commercial Purpose 
  • Both (a) and (b)
  • None of the above.
The FRBMA, stands for ____________.
  • Foreign Regulation and Budget Management Act
  • Fiscal Responsibility and Budget Management Act
  • Finance Regulations and Bonds Management Association
  • Funds Reallocation and Budget Management Act
The Return on investment and Return on Equity of Banks has been declining due to -
  • Lower Interest on Government Borrowing from Banks
  • Subsidised credit to Priority Sector
  • Rapid Branch Expansion
  • All of the above
The definition of money includes __________.
  • only currency notes and coins
  • currency and demand deposits
  • currency, demand deposits and other financial assets
  • currency and foreign exchange reserves
"Money is a matter of functions of four ___________.
  • medium, income, standard and store
  • medium, measure, standard and store
  • medium, measure, profit and store
  • medium, quantity, standard and store
People who save in small odd lots, deposit their money in banks _____________.
  • to ensure safety of their funds
  • to have liquidity
  • Both (a) and (b)
  • None of the above
At the time of independence India had ___________________.
  • no banking system
  • had very few banks
  • well developed banking system
  • fairly developed banking system
Which of the following is a legal tender in a modern economy?
  • Currency notes
  • Bank cheques
  • Bills of exchange
  • Promissory notes
Lack of double coincidence of wants exists under barter system because of difficulty in simultaneous fulfillment of mutual wants of buyers and sellers. 
  • True
  • False
Which one of these is a limitation of the barter exchange?
  • Lack of double coincidence of wants
  • Lack of store of value
  • Lack of common measure of value
  • All of these
Which of the following is not a problem of barter system of exchange?
  • Store of Value
  • Double Coincidence of Wants
  • Unit of Account
  • Unemployment
Select the correct statement/statements regarding 'numeraire' from the given list using the code given below:
It is a monetary unit for denominating international exchanges on a common basis.
Today the Special Drawing Rights (SDRs) of the IMF is accepted as the standard numeraire in the world.
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
 The price at which a market maker is prepared to sell (a currency) or lend (money) is called ___.
  • forward rate
  • sport rate
  • bid rate
  • offer rate
AML stands for ________________.
  • After Money Liability
  • Anti Money Laundering
  • Anti Management Liability
  • None of the above
What is the other name for `Money Multiplier'? 
  • Credit Multiplier
  • Deposit Multiplier
  • Cash Reserve Ratio
  • None of these
 Which one of the following statement is incorrect about Reverse Mortgage? 
  • It is a kind of loan through which one can get cash flow serially in return for pledging a property to a bank.
  • It is the conveyance of an asset by a borrower to a lender as security for a loan.
  • This scheme originated in the USA.
  • The eligibility criteria set by the RBI states that the person should be above $$60$$ years of age and own a home to avail this mortgage.
The value of money varies.
  • Directly with the, interest rate
  • Directly with the price level
  • Directly with the volume of employment
  • Inversely with the price level
Co-operation, self help and mutual help are the working principle of :
  • Commercial banks
  • Co-operative bank
  • NABARD
  • Reserve Bank of India
In time value of money, nominal rate is ________________.
  • not shown on timeline
  • shown on timeline
  • multiplied on timeline
  • divided on timeline
Arrange the following in order in which they appeared.
Use the code given below:
(i) Friedman's Quantity Theory of Money
(ii) Fisher's Equation of Exchange
(iii) Cambridge Equation of Exchange
(iv) Don Patinkins Theory of Money
  • (ii) (iii) (iv) (i)
  • (i) (ii) (iii) (iv)
  • (ii) (iii) (i) (iv)
  • (iii) (iv) (ii) (i)
The number of times a unit money exchanges hands during a unit period of time is known as - 
  • Velocity of circulation of money
  • Face of circulation of money
  • Transactions velocity of money
  • Income velocity of money
The oldest stock exchange of India is:
  • Ahmedabad Stock Exchange
  • Bombay Stock Exchange
  • Bangalore Stock Exchange
  • Hyderabad Stock Exchange
Identify the correct chronological order of the following theories.
Cambridge version of quantity theory of money.
Fisher's version of quantity theory of money.
Tobin's theory of demand for money.
Baumol's theory of demand for inventory.
  • 3, 4, 1, 2
  • 2, 1, 4, 3
  • 4, 1, 2, 3
  • 1, 2, 3, 4
Which of the following are not the limitations of barter exchange?
  • Double coincidence of wants
  • legal acceptability
  • Store of value
  • Standard of deferred payments
Which of the following statement is correct about Self-Help Groups?
  • The SHGs help borrowers overcome the problem of lack of collateral
  • The SHGs are the building blocks of organisation of the rural poor
  • The SHGs is the group which is not responsible for the repayment of loan
  • Both A and B
Match the following and choose the right option.
Column AColumn B
a) Credit cards(i) Tertiary sector
b) Cheque(ii) Currency notes
c) Banking(iii) Point of sale (PoS) machine
d) RBI(iv) Demand deposits
  • a-(i), b-(ii), c-(iii), d-(iv)
  • a-(iv), b-(iii), c-(ii), d-(i)
  • a-(ii), b-(i), c-(iv), d-(iii)
  • a-(iii), b-(iv), c-(i), d-(ii)
Why do you think poor householders require more of these banks?
  • As credit requirement are more in villages.
  • There is greater demand of formal sources of credit.
  • Because moneylenders help them.
  • As the farmers are wealthy.
Which of the following are credit money?
  • Token money
  • Circulating promissory notes issued by government
  • Demand deposit in the bank
  • All of the above
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