Money and Credit — Class 10 MCQs with Answers
Class 10 CBSE Economics · Chapter 3
30 practice questions · 10 Easy · 10 Medium · 10 Hard · Updated
Practise the most important Class 10 CBSE Economics questions from Chapter 3, "Money and Credit". You get 3 timed quizzes made from 30 NCERT-based MCQs, with answers and explanations. The questions are split into 10 Easy, 10 Medium and 10 Hard. Warm up on the basics, then move on to the exam-level questions that set top scorers in CBSE Board exams apart.
To score well in "Money and Credit", focus on dates, cause and effect, and reading maps and sources. Each MCQ here is timed and uses exam-style marking (+4 correct, −1 wrong, 0 skipped). This trains you to stay accurate under time pressure, as real papers need. Every question has a short explanation, so a wrong answer becomes a quick lesson. It is the fastest way to fix gaps before a test.
Use this chapter for focused revision. Start with the Easy set to check your basics on Money and Credit, then move to Medium and Hard to practise applying them. Your accuracy, streaks and XP save automatically. This chapter also adds to your overall Class 10 Economics mastery score. 6 sample questions are solved in full below, with the answer and a worked explanation. Sign in free to start practising.
Key concepts: Money and Credit (Class 10 Economics)
This chapter explains why money replaced barter, its modern forms, and how banks and credit work. It covers the terms of credit and collateral, contrasts formal sources supervised by the RBI with high-interest informal lenders, and shows how Self-Help Groups and microfinance bring affordable credit to the rural poor.
- Double coincidence of wants
- In barter both parties must want each other's goods for an exchange to happen; money removes this need by serving as a medium of exchange.
- Currency
- Notes and coins that everyone accepts as money; in India currency is issued by the Reserve Bank of India on behalf of the central government.
- Demand deposits
- Money deposited in bank accounts that can be withdrawn on demand; it counts as money and can be paid to others by cheque without using cash.
- Cheque
- A paper instructing the bank to pay a stated sum from the writer's account to another person, letting people settle payments without handling cash.
Money and Credit — important questions & MCQs with answers (Class 10 Economics)
6 solved questions from this chapter's difficulty levels, each with its answer and explanation. The other 24 are timed and scored when you sign in.
- Q1Easy
Money replaced the system of:
A.DonationB.Credit onlyC.InheritanceD.Barter✓ CorrectAnswer: D. Barter
Explanation: Money solved the 'double coincidence of wants' problem.
- Q2Easy
RBI in India stands for:
A.Rural Bank of IndiaB.Reserve Bank of India✓ CorrectC.Royal Bank of IndiaD.Regional BankAnswer: B. Reserve Bank of India
Explanation: RBI is India's central bank.
- Q3Medium
Formal sources of credit include:
A.Friends and familyB.MoneylendersC.Banks and cooperatives✓ CorrectD.Loan sharksAnswer: C. Banks and cooperatives
Explanation: RBI supervises banks/cooperatives — formal.
- Q4Medium
Banks are able to give loans because:
A.They keep all deposits idle in their vaultsB.They keep only a small part of deposits as cash reserve and lend out the rest✓ CorrectC.They print their own currencyD.They borrow only from foreign countriesAnswer: B. They keep only a small part of deposits as cash reserve and lend out the rest
Explanation: Banks keep a small portion of deposits as reserve to meet withdrawals and use the major part to extend loans, earning the difference in interest.
- Q5Hard
In India, currency is issued by:
A.WTOB.Any commercial bankC.State governmentsD.Reserve Bank of India on behalf of Government✓ CorrectAnswer: D. Reserve Bank of India on behalf of Government
Explanation: RBI is the sole issuer of currency in India.
- Q6Hard
Debt-trap occurs when:
A.A borrower can't repay loan and falls deeper into debt✓ CorrectB.Loan is repaidC.Bank closesD.Interest is zeroAnswer: A. A borrower can't repay loan and falls deeper into debt
Explanation: Common with informal high-interest loans.
Start this chapter free
You have 6 solved above. Sign in with Google (no card needed). You get 1 Easy + 1 Medium quiz on every chapter during your 30-day trial. After that, you keep 1 Easy quiz on every chapter, free for good, plus the full key-concept notes, formulas & exam tips.
This chapter has 30 questions (10 Easy · 10 Medium · 10 Hard), with timed scoring and instant feedback. The rest unlock with the ₹999/year plan.
Start this chapter free →Money and Credit — FAQs
What are the key concepts in Class 10 Economics Money and Credit?+
This chapter explains why money replaced barter, its modern forms, and how banks and credit work. It covers the terms of credit and collateral, contrasts formal sources supervised by the RBI with high-interest informal lenders, and shows how Self-Help Groups and microfinance bring affordable credit to the rural poor. Key ideas include Double coincidence of wants, Currency, Demand deposits, Cheque.
What does Class 10 Economics Chapter 3 (Money and Credit) cover on XamBaaz?+
It has 30 NCERT-based MCQs on "Money and Credit": 10 Easy, 10 Medium and 10 Hard. Together they make 3 timed quizzes, and you never get the same set twice. Every question has an instant explanation. They help you prepare for CBSE Board exams.
Are these "Money and Credit" questions free to practise?+
Yes. Sign in with Google to practise "Money and Credit" free. Full unlimited access is ₹999/year on a launch offer until 1 December 2026. No chapter is charged separately.
How should I revise "Money and Credit" for the exam?+
Start with the Easy quiz to check your basics, then try Medium and Hard to practise applying them. There are 3 timed quizzes on this chapter, so you can come back for a fresh set instead of one you have seen. Read each explanation, retry the questions you miss, and track your accuracy until it stays high.
Are these "Money and Credit" MCQs available with answers?+
Yes. 6 sample questions are shown here in full, each with the correct option and a step-by-step "Why" explanation. Sign in free with Google to start practising, with instant scoring.
Is there negative marking in the "Money and Credit" quizzes?+
Yes. The timed quizzes use exam-style marking: +4 for a right answer, −1 for a wrong one and 0 for a skip. MHT-CET and CBSE board papers have no negative marking. Our mocks for those are scored their way.
What are the important questions from Money and Credit (Class 10 Economics)?+
The questions that matter most test Double coincidence of wants, Currency, Demand deposits, Cheque. This page shows 6 solved important MCQs with answers and explanations; all 30 questions on the chapter are available as timed quizzes once you sign in.
Is there an online quiz for Money and Credit?+
Yes — Class 10 Economics Money and Credit has timed online quizzes at Easy, Medium and Hard levels, with instant scoring and a worked explanation on every question. The first quiz on the chapter is free.