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CBSE Questions for Class 10 Economics Money And Credit Quiz 7 - MCQExams.com
CBSE
Class 10 Economics
Money And Credit
Quiz 7
SHG's help the women and rural poor to become self-reliant ___________.
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Financially
0%
Agriculturally
0%
Industrially
0%
Occasionally
Explanation
SHG's help the women and rural poor to become self-reliant. Self Help Groups are groups of rural poor people (especially women). The idea is to help them organize themselves, help them financially, provide them work, help them in other matters including domestic issues. Government provides such groups loans at very low interests and provides help to market the products of SHG. Hence, correct answer is option A.
A farmer exchanges wheat for cloth. This system of exchange is referred to as _____
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Barter
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Monetary exchange
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Self-consumption
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None of the above
Explanation
A barter system of exchange is a system in which goods are exchanged for goods. Barter can only take place if there is a double coincidence of wants. It was followed before the evolution of money.
In the above situation, a farmer exchanges wheat for cloth, i.e. a commodity for another commodity. The exchange system referred to here is the barter system.
Hence, A is the correct option.
'A' has an item that 'B' wants and 'B' has a good that 'A' wants. This is referred to as _____ under the barter system of exchange.
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Unit of account
0%
Storage value
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Double coincidence of wants
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None of the above
Explanation
Double coincidence of wants is one of the main characteristics of the barter system. It arises when two individuals are in possession of such goods which they are willing to exchange for the satisfaction of their wants.
In the above situation, A and B both have goods that are desired by the other one.
Hence, C is the correct option.
Evolution of money has facilitated
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a common unit of exchange
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store of value
0%
transfer of value
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all of these
Explanation
Money can be defined as anything which is generally accepted as a medium of economic exchange in the form of notes or currency. It acts as a measure and store of value.
Hence, the evolution of money has facilitated a common unit of exchange, store of value, and transfer of value.
D is the correct option.
Self Help Groups have _____ .
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mainly encouraged rural women to obtain credit
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helped women to become self-reliant
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helped women to discuss on relevant issues like health
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all of these
Explanation
SHG is a mutual help group of people who provide support among themselves.
1:In a SHG (Self Help Group) important decisions in regard to loan and savings are taken by group members.
2:Self Help Groups issue loans (credit) at reasonable rate of interest.
3:They come together to solve their economic issues, earn income and become self-reliant.
4:Helped women to discuss relevant issues like health.
Easy term of credit includes _____ .
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high rate of interest
0%
lesser number of collateral
0%
higher number of documents
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steep condition of repayment
Explanation
Easy term of credit includes s
teep condition of repayment.
Tougher terms of credit include h
igher rates of interest, collateral security and more number of documents related to loan.
Informal sources of credit do not include ____.
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co-operatives societies
0%
employees
0%
money lenders
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relatives and friends
Explanation
Informal sources of credit include:
Employees
Money Lenders
Relatives and Friends
How many members are there in a Self Help Group?
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10-15
0%
10-20
0%
20-25
0%
25-30
Explanation
Self Help Group is a small group of 10 to 20 people formed to mutually help each other.
SHGs help in promoting self employment, credit, awareness and savings.
Banks supports SHGs by means of bank linkage programme.
Self Help Groups are issued loans at _____ .
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no interest
0%
reasonable rate of interest
0%
high rate of interest
0%
exorbitant rate of interest.
Explanation
1:SHG (Self Help Group) important decisions in regard to loan and savings are taken by group members.
2:Self Help Groups issue loans at reasonable rate of interest.
In Self Help Groups, _____ decide the savings and loan activity option.
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RBI
0%
Co-operatives
0%
Banks
0%
Members
Explanation
In Self Help Groups, group members decide the savings and loan activity options.
SHG is a mutual help group.
They come together to solve their economic issues and earn income.
In a financial transaction, money can be exchanged in the form of _____ .
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currency notes
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coins
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cheques
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all of these
Explanation
Money can be exchange in the form of currency notes, coins, cheques, demand drafts etc. for financial transactions among the people.
Instruments like cheques, demand drafts have to be cleared by the banks.
Debt- trap occurs due to _____ .
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inability of the poor to repay back the loans at higher interest to money lenders
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in case of crop failure, when the farmer get no return for the capital invested in buying agricultural inputs
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farmer has to sell a part of his land to repay his loan and has no resources to generate income in the next year
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all of these
Explanation
Debt trap is a situation where the debtor will not be able to repay the debt incurred.
Debt trap situation may arise due to the higher interest rates or change in terms and conditions of debt incurred.
Normally, debt trap will result in default of payments or bankruptcies.
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.
Given the money wages,if the price level in an economy increases, then the real wages will _________.
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increase
0%
decrease
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remain constant
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become flexible
Explanation
Real wage refers to the proportion of wage which is spent on consumption and which decides the purchasing power in the economy. It is that part of the wage that regulates the price level in the economy and vice versa.
So if there is an increase in the price level in the economy with the same money wage, then the real wage will fall owing to a decrease in the purchasing power of money from the former situation.
Which of the following actions could reasonably be expected to cause a reduction in investment spending on the part of the business and subsequently a reduction in output,
employment, and income?
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An increase in current sales that is expected to be temporary.
0%
An announcement by the government that it's spending on all goods and services will be
substantially increased in the coming year.
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An increase in the prime lending rate (interest rate) to double its present level.
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The existence of highly limited plant capacity relative to current and expected future
demand.
Teaser rates are related to which of the following types of loans?
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0%
Home Loans
0%
Personal Loans
0%
Auto Loans
0%
Reverse Mortgage Loans
Explanation
Teaser Rate: A teaser rate is a low adjustable introductory interest rate which is charged to customers during the initial stages of a loan. The rate, which can be as low as zero per cent, but is not permanent. The rate advertised for a loan, credit card or deposit account in order to attract potential customers to obtain the service. Typically the teaser rate is 0%. The teaser rate is only temporary. After its expiration, the rate increases to a normal or much higher than normal rate, and in some cases, the borrower cannot keep up with making payments.
Which unit of valuation is known as Paper Gold?
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Eurodollar
0%
Petrodollar
0%
SDR
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GDR
Explanation
SDR unit
The SDR unit of valuation is known as paper gold. SDR represents Special Drawing Rights. It is an accounting entry and measures a nation's reserve assets with IMF
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