CLASS 10 MONEY AND CREDIT WORKSHEET

CLASS 10 important Questions Economics Chapter 3 Money and Credit
WORKSHEET

VERY SHORT ANSWER TYPE QUESTIONS:

1. Find the incorrect option:

a)Demand deposit share the essential features of money

b)with demand deposit payments can be made without cash.

c)Demand deposits are safe way of money transformation.

d)Demand deposit facility is like

cheque

2. Arrange the following options in correct sequence.

(i) Deposit extra cash with bank (ii)Withdraw money

(iii) Write a

cheque (iv)Open a bank account

Options:

a)iii iii iv 

(b) i iii ii iv 

(c)iv i iii ii 

(d)iv iii ii i

3. In the question given below, there are two statements marked as Assertion(A) and

Reason(R ). Read the statements and choose the correct option:

(I)Assertion (A) :

In India, no individual can refuse to accept a payment made in rupees.

Reason (R ) :

Rupee is the legal tender in India

Options:

(a)Both A and R are true and R is the correct explanation of A.

(b) Both A and R are true.

(c )Both A and R are true but R is not the correct explanation of A.

(d)A is true but R wrong

4. Reason(R). Read the statements and choose the correct option

Assertion ( Robin took a credit in the form of advance payment from a buyer and he

delivered the goods to the buyer on time and also earned profit. The credit made Robin

better off in the situation.

Reason (R ): Credit can never push a person into debt trap.

(b )Assertion ( Banks charge a high rate of interest from the borrowers than what they offer

to the depositors.

Reason (R) the difference between what is charged from the borrowers and what is paid

to depositors is their main source of income

Options:

(a)Both A and R are true and R is the correct explanation of A.

(b) Both A and R are true.

(c )Both A and R are true but R is not the correct explanation of A.

(d)A is true but R wrong

5. What are the terms of credit?

6. What is double Coincidence of wants?

7. Why do banks ask for collateral while giving credit to a borrower?

8. ‘Modern currency is without any use of its own’; then why is it accepted as a medium of exchange? 

9. Why one cannot refuse a payment made in rupees in India?

10. Prove with an argument that there is a great need to expand formal sources of credit in rural India.