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Chapter-10 Money Savings and Investments — Online MCQ Test

SOCIAL · Samacheer Kalvi 8th · Tamil Nadu State Board
Practice Chapter-10 Money Savings and Investments with a free chapter-wise online MCQ test. This chapter covers: Barter system Demonetization Black money Inflation Explains the evolution of money savings investment and the importance of financial management. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter-10 Money Savings and Investments — Important Questions & Answers

What is the barter system?
  • A. Buying goods using coins and notes
  • B. Exchanging goods directly for goods
  • C. Saving money in a bank
  • D. Paying tax to the government
Answer: B. Exchanging goods directly for goods
In the barter system, people exchange one commodity for another without using money.
Which is a modern form of money used for payments?
  • A. Shells
  • B. Coins
  • C. Grains
  • D. Livestock
Answer: B. Coins
Coins are a commonly used form of money in the modern monetary system.
Why was money introduced in place of the barter system?
  • A. To make exchange easier and avoid double coincidence of wants
  • B. To stop people from trading
  • C. To reduce the use of goods
  • D. To increase inflation
Answer: A. To make exchange easier and avoid double coincidence of wants
Money solved the problem of finding someone who wants exactly what you offer and has what you need.
A worker’s salary remains the same, but the prices of daily goods rise. What happens to the worker?
  • A. Purchasing power increases
  • B. Purchasing power decreases
  • C. Money becomes more valuable
  • D. Savings are unnecessary
Answer: B. Purchasing power decreases
During inflation, the same income buys fewer goods, so purchasing power decreases.
Which of the following is the best example of a safe and fixed-return investment?
  • A. Lottery ticket
  • B. Fixed deposit in a bank
  • C. Speculating in gambling
  • D. Spending money immediately
Answer: B. Fixed deposit in a bank
A fixed deposit generally offers safety along with a predetermined rate of interest, unlike risky options such as lottery or gambling.