Chapter Exam

Chapter-17 Money and Credit — Online MCQ Test

Q: What is the modern form of money issued by the government and accepted as legal tender?

Answer: B. Fiat money — Fiat money is the currency issued by the government and accepted as money because of legal backing, not because it has intrinsic value.

Q: Which of the following is an example of the barter system?

Answer: B. Exchanging wheat for cloth — In barter, goods are directly exchanged for other goods without using money as a medium.

Q: Why is money preferred over barter in modern economies?

Answer: C. It acts as a medium of exchange — Money makes exchange easier because people can sell and buy goods using a common medium.

Q: Which of the following is NOT a feature of credit?

Answer: C. It always requires no repayment — Credit means borrowing with an obligation to repay, often with interest. It is not free money.

SOCIAL · Samacheer Kalvi 9th · Tamil Nadu State Board

Practice Chapter-17 Money and Credit with a free chapter-wise online MCQ test for Tamil Nadu State Board Samacheer Kalvi 9th SOCIAL. This chapter covers: Description Explains the evolution of money banking systems and financial credit Keywords Barter Fiat Money RBI Commercial Banks SHG. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter-17 Money and Credit — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board Samacheer Kalvi 9th SOCIAL — Chapter-17 Money and Credit, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the modern form of money issued by the government and accepted as legal tender?

A. Barter system
B. Fiat money ✓
C. Commodity money
D. Promissory note

Answer: B. Fiat money
Fiat money is the currency issued by the government and accepted as money because of legal backing, not because it has intrinsic value.

Which of the following is an example of the barter system?

A. Using coins to buy rice
B. Exchanging wheat for cloth ✓
C. Depositing money in a bank
D. Paying through a cheque

Answer: B. Exchanging wheat for cloth
In barter, goods are directly exchanged for other goods without using money as a medium.

Why is money preferred over barter in modern economies?

A. It increases the number of goods
B. It removes the need for exchange
C. It acts as a medium of exchange ✓
D. It makes all goods free

Answer: C. It acts as a medium of exchange
Money makes exchange easier because people can sell and buy goods using a common medium.

Which of the following is NOT a feature of credit?

A. Borrowing now and repaying later
B. Interest may be charged
C. It always requires no repayment ✓
D. It can be provided by banks or SHGs

Answer: C. It always requires no repayment
Credit means borrowing with an obligation to repay, often with interest. It is not free money.

Which of the following is the most accurate statement about the RBI and commercial banks?

A. Both can issue currency notes
B. RBI regulates banks while commercial banks accept deposits and lend money ✓
C. Commercial banks control monetary policy, while RBI gives personal loans
D. RBI only works in villages, while commercial banks work only in cities

Answer: B. RBI regulates banks while commercial banks accept deposits and lend money
The RBI is the central bank that regulates the banking system, while commercial banks perform everyday banking functions like deposits and loans.