Assertion and Reason Questions for Class 10 Social Science Economics Chapter 3 Money And Credit

Money And Credit Class 10 Assertion and Reason Type Questions have been prepared by CBSE Experts. Solve Assertion and Reason Questions for Class 10 Social Science Economics Chapter 3 Money And Credit for better understanding. Assertion Reason question for class 10 Economics Chapter 3 is prepared on the latest exam pattern.

Students can solve Assertion and Reason Questions for Class 10 Social Science to boost their preparation Money And Credit Resources 10 Assertion and Reason Type Questions is provided to help students tackle the question asked in the board exam.

Money And Credit Class 10 Assertion and Reason Type Questions

Directions: Mark the option which is most suitable :
(A )If both assertion and reason are true and the reason is the correct explanation of assertion.
(B) If both assertion and reason are true but the reason is not the correct explanation of assertion.
(C) If an assertion is true but the
reason is false.
(D) If both assertion and reason are false.

Q.1.Assertion: The modern currency is used as a medium of exchange; however, it does not have a use of its  own.

Reason : Modem currency is easy to carry

Answer: (b) Both assertion and reason are true, but reason is not the correct explanation of assertion


Q.2.Assertion:In India, no individual can refuse to accept a payment made in rupees.

Reason : Rupee is the legal tender in India.

Answer: (a) Both assertion and reason are true, and reason is the correct explanation of assertion.


Q.3.Assertion:The facility of demand deposits makes it possible to settle payments without the use of cash.

Reason : Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account.

Answer: (d) Both assertion and reason are false


Q.4.Assertion: Banks keep only a small proportion of  their deposits as cash with themselves.

Reason : Banks in India these days hold about 15 per cent of their deposits as cash

Answer: (b) Both assertion and reason are true, but reason is not the correct explanation of assertion


Q.5.Assertion: Banks charge a higher interest rate on loans than what they offer on deposits.

Reason : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Answer: (a) Both assertion and reason are true, and reason is the correct explanation of assertion


Q.6.Assertion: Rohan took credit in the form of advance payment from a buyer and he delivered the goods to the buyer on time and also earned profit. The credit made Rohan better off in this situation.

Reason : Credit can never push a person into a debt trap.

Answer: (c) Assertion is true, but reason is false


Q.7.Assertion: Credit would be useful or not depends on the risk involved in a situation.

Reason : The chance of benefitting from credit is highest in agriculture sector

Answer: (c) Assertion is true, but reason is false


Q.8.Assertion: Collateral is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid.

Reason : Collateral is given as the lender can sell the collateral to recover the loan amount if the borrower fails to repay the loan.

Answer: (a) Both assertion and reason are true, and reason is the correct explanation of assertion


Q.9.Assertion: The terms of deposit are same for all credit arrangements.

Reason : Credit arrangements are very complex process so to remove the complexities same terms of deposits are used.

Answer:(d) Both assertion and reason are false


Q.10.Assertion: The Reserve Bank of India supervises the functioning of formal sources of loans.

Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc

Answer:(b) Both assertion and reason are true, but reason is not the correct explanation of assertion.


We hope the given Money And Credit Class 10 Assertion and Reason Questions will help you. Please practice Money And Credit Class 10 Assertion and Reason Questions to boost your score in Board Exam. If you have any queries regarding Money And Credit Class 10 Assertion and Reason Questions, contact us and we will get back to you soon.

By Team of CBSE Expert

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