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Economic Chapter - 3 Money and Credit
MCQs
1. Which of the following is a modern form of money?
a) Grains
b) Gold
c) Silver
d) Cheque
2. Which organization issues currency notes on behalf of the central government in India?
a) State Bank of India
b) Reserve Bank of India
c) Punjab National Bank
d) Ministry of Finance
3. Which one of the following is the main source of income for banks?
a) Deposits from customers
b) Loans given by RBI
c) Interest on loans given to borrowers
d) Interest on deposits
4. Which among the following is an informal source of credit?
a) Bank
b) Cooperative Society
c) Moneylender
d) Self-Help Group
5. What is the main reason why banks demand collateral while giving loans?
a) To ensure repayment
b) To earn profit
c) To check black money
d) To reduce lending
2 or 3 Mark Questions
5 Mark Questions
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