LIWA

Money and Credit

CBSE Class 10 · Social Science · Chapter 20

Past board exam questions

CBSE 2027 sample paper · 1 mark

Why is money described as a medium of exchange?

  1. It is used to compare the value of different goods.
  2. People accept it in return for goods and services, making trade easier.
  3. Money helps individuals save their wealth safely for the future.
  4. It enables record-keeping of every transaction made in the economy.
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People accept it in return for goods and services, making trade easier.

CBSE 2027 sample paper · 1 mark

Which of the following factors is NOT included in the terms of credit?

  1. Interest rate
  2. Mode of repayment
  3. Collateral
  4. Inflation rate
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Inflation rate

CBSE 2027 sample paper · 3 marks

Explain how Self-Help Groups (SHGs) help banks to minimize risk when providing loans to poor women, who do not have any collateral.

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1. The SHG as a whole is responsible for repayment of the loan, so banks have an assurance of repayment even though members have no collateral. 2. The group monitors its individual members and follows up on cases of non-repayment; a member who does not repay is taken up seriously by the group. 3. Regular savings and organised meetings show the group’s discipline and reliability, which makes banks confident to lend to it.

CBSE 2026 board paper · 1 mark

Read the following case and choose the correct option : Swapna owns a small farm in her village. She wants to take loan to meet the expense of cultivation. From which of the following sources should Swapna take the loan ?

  1. Reserve Bank of India
  2. Nearest nationalised bank
  3. Moneylender of the village
  4. Agricultural trader
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Nearest nationalised bank

CBSE 2026 board paper · 1 mark

Why is Rupee accepted as a medium of exchange in India ?

  1. Because it is issued by the Reserve Bank of India on behalf of the State Government.
  2. Because it is issued by the Reserve Bank of India on behalf of the Central Government.
  3. Because it is issued by the State Bank of India on behalf of the Central Government.
  4. Because it is issued by the Reserve Bank of India on behalf of the World Bank.
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Because it is issued by the Reserve Bank of India on behalf of the Central Government.

CBSE 2026 board paper · 1 mark

Read the given case and choose the correct option : Swapna, a small farmer grows groundnut on her three acres of land. She takes a loan from the moneylender to meet the expenses of cultivation but midway due to flood, crop fails and her debt increased. Again she has to take loan to manage crops. Suggest Swapna, which of the following sources of loan would be suitable for her.

  1. Friends
  2. Relatives
  3. Moneylenders
  4. Banks
Show answer
Banks

CBSE 2026 board paper · 1 mark

Read the following case and choose the correct option : Megha has taken a loan of ₹ 5 lakhs from bank to purchase a house. The annual rate on the loan is 12% and loan is to be repaid in 5 years in monthly instalments. The 12% interest charged by the bank to Megha is related to which of the following ?

  1. Collateral
  2. Cost of Credit
  3. Duration of Loan
  4. Documentation
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Cost of Credit

CBSE 2026 sample paper · 1 mark

Which one of the following issues currency notes in India?

  1. Finance Ministry.
  2. Reserve Bank of India.
  3. State Bank of India.
  4. Central Bank of India.
Show answer
Reserve Bank of India.