Money and Credit
Bihar Board · Class 10 · Social Science
Practice quiz for Money and Credit — Bihar Board Class 10 Social Science. MCQs and questions with answers to test your preparation.
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What is the primary function of money as a medium of exchange?
Who issues currency notes in India?
What are demand deposits?
What percentage of deposits do banks typically keep as cash in India?
Sample Questions
What is collateral in a loan agreement?
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An asset used as a guarantee for loan repayment
Collateral is an asset that a borrower pledges as security for a loan, which the lender can sell if the loan is not repaid.
What are Self Help Groups (SHGs) primarily designed to do?
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Organize rural poor, especially women, for financial support
SHGs help poor individuals, particularly women, pool savings, access credit, and become financially self-reliant.
What is a debt trap?
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A situation where borrowing leads to increasing debt
A debt trap occurs when a borrower is unable to repay loans, leading to escalating debt and potential loss of assets.
Which sector supervises formal sources of loans in India?
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Reserve Bank of India
The RBI monitors and supervises formal lending institutions, ensuring they follow regulatory guidelines.
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