Money and Credit — Important Questions
Madhya Pradesh Board · Class 10 · Social Science
63 important questions from Money and Credit for Madhya Pradesh Board Class 10 Social Science, with answers. Written for the board exams 2027.
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Important Questions from Money and Credit
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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