Economics: Money & Credit: Class 10 Previous Year Questions

Economics: Money & Credit questions asked in CBSE board exams

Repeated questions first. Open the free app to see each question as it appeared in the paper, with its marking scheme.

1. (a) Differentiate between the formal and informal sources of credit. OR (b) Explain the functioning of ·Self-Help Groups'. 25
   Board 20265 markscase-based
2. 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 ? (A) Reserve Bank of India (B) Nearest …
   Board 20265 markscase-based
3. Why is Rupee accepted as a medium of exchange in India ? (A) Because it is issued by the Reserve Bank of India on behalf of the State Government. (B) Because it is issued by the Reserve Bank of India on behalf of the Central Government. (C) Because it is issue…
   Board 20265 markslong answer
4. Which one of the following is the purpose of collateral in a loan ? (A) To increase the interest for the lender (B) To secure the loan for the lender (C) To reduce paperwork for the lender (D) To avoid repayment on the loan
   Board 20265 markslong answer
5. Which of the following groups in urban India depend on informal sources to meet their credit needs ? 1 (A) Poor households (B) Households with few assets (C) Both poor households and households with few assets (D) Both well-off households and households with f…
   Board 20251 markMCQ
6. Page 23 of 27 36. Read the given source and answer the questions that follow : Loans From Cooperatives Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their res…
   Board 20254 markscase-based
7. Why does it become difficult for farmers in rural areas to take loans from government banks ? Read the following reasons and choose the most appropriate option : 1 I. Lack of collateral II. Complicated procedure III. Higher cost of borrowing IV. Lack of awaren…
   Board 20251 markMCQ
8. Arrange the following sources of credit in the most to least order to meet the credit requirement of rural households in India and choose the correct option : 1 I. Government II. Cooperative Banks and Societies III. Moneylenders IV. Relatives and friends Optio…
   Board 20251 markMCQ
9. How is credit essential for economic activities ? Explain with examples.
   Board 20243 marksshort answer
10. Examine the significance of credit in economic development of the country.
    Board 20243 marksshort answer
11. Why do lenders often require collateral before lending loan ? Choose the most suitable option from the following. (a) To lower interest rates for borrowers. (b) To establish personal relations. (c) To increase their profit margins. (d) To mitigate the risk of …
    Board 20241 markMCQ
12. Look at the given picture carefully and infer the income of the bank. DEPOSITORS People make People take BANK BORROWERS deposits loans People make The Income People repay withdrawals and of the bank increases loans with get interest interest Choose the correct…
    Board 20241 markMCQ
13. Explain any three functions of the Reserve Bank of India. (a) OR (b) Explain the role of banks with regard to money which they accept from the public.
    Board 20233 marksshort answer
14. Which one of the following is a formal source of credit ? (A) Relative (B) Trader (C) Money lender (D) Cooperative Society
    Board 20231 markMCQ
15. Read the following source and answer the questions that follow : 5. A House Loan Megha has taken a loan of 5 lakhs from the bank to purchase a house. The annual interest rate on the loan is 12 per cent and the loan is to be repaid in 10 years in monthly instal…
    Board 20221 markvery short
16. Explain, why the banks do not lend credit to certain borrowers ? (a) OR (b)Explain the functions of ·Self Help Group".
    Board 20221 markvery short
17. 'Business is all about solving people's problems - at a profit.' Explain how banks function like a business with respect to the above statement. 5 OR 'A bank is a place that will lend you money if you can prove that you do not need it.' Justify the above state…
    CBSE practice 2022-235 markslong answer
18. Describe circumstances that drive individuals to seek loans from informal sources of credit. (5) OR State the potential negative economic implications that would arise in an economy in the absence of the concept of credit.
    CBSE practice 2023-245 markscase-based
19. ( ) g wants to supplement her income to raise the standard of living of her family. How can banks and cooperatives help her and helping such people will lead to overall development of the country? OR (B): Money by providing the crucial intermediate step elimin…
    CBSE practice 2023-245 markslong answer
20. Which of the following statements about placer deposits are correct? (a) They are commonly found in valley floors and at the base of hills (b) They mainly contain minerals that easily dissolve in water (c) Gold and platinum are typical minerals found in such d…
    Sample paper 2026-273 marksshort answer

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