Chapter 31: Money and Credit — Online MCQ Test
SOCIAL SCIENCE · CLASS 9th · Karnataka State Board
Practice Chapter 31: Money and Credit with a free chapter-wise online MCQ test.
This chapter covers: Focusing on financial systems this chapter details evolution of money banking functions credit systems digital payments and monetary stability..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 31: Money and Credit — Important Questions & Answers
Which of the following is the most common modern form of money used for daily transactions?
- A. Gold coins
- B. Paper notes and coins issued by the government
- C. Barter goods
- D. Salt and shells
Answer: B. Paper notes and coins issued by the government
Paper notes and coins are the standard legal tender used in modern economies for buying and selling goods and services.
Paper notes and coins are the standard legal tender used in modern economies for buying and selling goods and services.
What is the main function of a bank?
- A. To print currency for the government
- B. To store only gold and silver
- C. To accept deposits and provide loans
- D. To fix the prices of all goods
Answer: C. To accept deposits and provide loans
Banks collect deposits from people and lend money to those who need credit, which is their primary financial function.
Banks collect deposits from people and lend money to those who need credit, which is their primary financial function.
In a barter system, what is needed for a transaction to take place?
- A. A bank account
- B. Double coincidence of wants
- C. A credit card
- D. Digital wallet
Answer: B. Double coincidence of wants
Barter works only when two people want exactly what the other person has. This is called double coincidence of wants.
Barter works only when two people want exactly what the other person has. This is called double coincidence of wants.
Which statement about commercial banks is correct?
- A. They only lend money and do not accept deposits
- B. They accept deposits from the public and lend to borrowers
- C. They print currency notes independently
- D. They function without any interest system
Answer: B. They accept deposits from the public and lend to borrowers
Commercial banks mobilize savings by taking deposits and provide credit by lending money to individuals and businesses.
Commercial banks mobilize savings by taking deposits and provide credit by lending money to individuals and businesses.
Which statement is the MOST accurate about the role of the Reserve Bank of India (RBI) in money and credit?
- A. It only provides loans to farmers directly
- B. It controls the issue of currency and regulates banks
- C. It collects taxes from citizens
- D. It decides the price of gold in markets
Answer: B. It controls the issue of currency and regulates banks
The RBI is the central bank of India and is responsible for issuing currency and supervising the banking system.
The RBI is the central bank of India and is responsible for issuing currency and supervising the banking system.