CBSE Class 10 Social Science Money and Credit Important Questions 2027
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22 questions from Money and Credit (Understanding Economic Development) appeared in 7 of the 7 CBSE papers we analysed (2022–2026) — here are the topics that matter, the questions that repeat, and every previous-year question from this chapter.
Key facts
- Economics - Understanding Economic Development unit — 20 marks in the official syllabus
- Asked in 7 of 7 analysed papers (2022–2026)
- About 3.1 questions per paper (OR alternatives counted separately)
- 6 question patterns repeated across papers
Important topics in Money and Credit
| # | Topic | Asked in | Importance |
|---|---|---|---|
| 1 | Formal and informal sources of credit | Board 2022Board 2023Board 2024Board 2025Board 2026Sample 2025Sample 2026 | ★★★★★ |
| 2 | Money as a medium of exchange / double coincidence of wants | Board 2022Sample 2025Sample 2026 | ★★☆☆☆ |
| 3 | Self-Help Groups and rural credit | Board 2025Sample 2025 | ★☆☆☆☆ |
| 4 | Terms of credit and collateral | Board 2024 | ★☆☆☆☆ |
Repeated questions from Money and Credit
1. Money eliminates double coincidence of wants
2×Sample 2025Sample 20261/5 marks
Person Z tries to explain how the requirement of a double coincidence of wants in a barter system limits trade and exchange. Which of the following justification do you think will be used by him/her? A. It makes trade more complicated, as each person must have what the other person wants, limiting the pool of potential trade partners. B. The barter system allows trade to be conducted more efficiently since both parties already know what they need from the transaction. C. It increases the number of exchanges because each person can trade for exactly what they want. D. The system creates value for goods by ensuring that both parties have a direct need for each other's goods.
2. Group credit institutions raising rural income
2×Board 2025Sample 20252/5 marks
(36.3) Explain the role of cooperative societies in increasing the income of farmers.
3. Importance of credit for economic activities
2×Board 2024Sample 20251/3 marks
Mr. X has taken credit to make candles during the festive season. Choose the correct options that defines the importance of credit from the given options:
i. it plays a vital and positive role in meeting his target and accelerating his income
ii. the credit helps him to meet the ongoing expenses of production
iii. the credit helps him complete the production on time
iv. it helps him in exercising restraint and get into the habit of taking more credit
(A) Only 4
(B) 3 and 4
(C) 1, 2 and 3
(D) Only 2
4. Functions / role of the Reserve Bank of India
2×Board 2023Board 20263 marks
Explain the role of Reserve Bank of India in the Indian economy.
5. Cooperative society as a formal source of credit
2×Board 2023Board 20251 marks
[Source: 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 resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.] (36.1) Cooperative societies come under which source of credit ?
6. Role of banks in accepting deposits and lending
2×Board 2022Board 20233 marks
Explain the role of banks with regard to money which they accept from the public.
Money and Credit questions by paper
| Paper | Questions | Marks |
|---|---|---|
| Board 2022 | 3 | 8 |
| Board 2023 | 3 | 7 |
| Board 2024 | 3 | 5 |
| Board 2025 | 5 | 6 |
| Sample 2025 | 3 | 11 |
| Board 2026 | 2 | 4 |
| Sample 2026 | 3 | 5 |
Counts include both options of internal-choice (OR) questions.
Previous year questions: Money and Credit
Board 2026 2 questions
Read the given case and choose the correct option:
Swapna, a small farmer grows groundnut on her three acres of land. She takes a loan from the moneylender to meet the expenses of cultivation but midway due to flood, crop fails and her debt increased. Again she has to take loan to manage crops.
Suggest Swapna, which of the following sources of loan would be suitable for her.
(A) Friends
(B) Relatives
(C) Moneylenders
(D) Banks
Explain the role of Reserve Bank of India in the Indian economy.
Sample 2026 3 questions
Which one of the following issues currency notes in India? A. Finance Ministry. B. Reserve Bank of India. C. State Bank of India. D. Central Bank of India.
Person Z tries to explain how the requirement of a double coincidence of wants in a barter system limits trade and exchange. Which of the following justification do you think will be used by him/her? A. It makes trade more complicated, as each person must have what the other person wants, limiting the pool of potential trade partners. B. The barter system allows trade to be conducted more efficiently since both parties already know what they need from the transaction. C. It increases the number of exchanges because each person can trade for exactly what they want. D. The system creates value for goods by ensuring that both parties have a direct need for each other's goods.
'Expanding access to loans in the formal sector is important, yet it is equally critical that these loans are accessible to all people for national development.' Justify the statement.
Board 2025 5 questions
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 : I. Lack of collateral II. Complicated procedure III. Higher cost of borrowing IV. Lack of awareness. Options : (A) Only I, II and III are correct. (B) Only II, III and IV are correct. (C) Only I, II and IV are correct. (D) Only I, III and IV are correct.
Which of the following groups in urban India depend on informal sources to meet their credit needs ? (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 few assets
[Source: 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 resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.] (36.1) Cooperative societies come under which source of credit ?
(36.2) Mention any two sources of capital of cooperative societies.
(36.3) Explain the role of cooperative societies in increasing the income of farmers.
Sample 2025 3 questions
Mr. X has taken credit to make candles during the festive season. Choose the correct options that defines the importance of credit from the given options:
i. it plays a vital and positive role in meeting his target and accelerating his income
ii. the credit helps him to meet the ongoing expenses of production
iii. the credit helps him complete the production on time
iv. it helps him in exercising restraint and get into the habit of taking more credit
(A) Only 4
(B) 3 and 4
(C) 1, 2 and 3
(D) Only 2
Miss X wants to start a savoury food store in her village. She wants to supplement her income to raise the standard of living of her family. How, do you think, self-help groups can help, support your answer with reasons?
Money by providing the crucial intermediate step eliminates the need for double coincidence of wants. Justify the statement highlighting the significance of the modern form of money in India.
Board 2024 3 questions
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 loan default.
Look at the given picture carefully and infer the income of the bank. [Picture shows: Depositors 'People make deposits / People make withdrawals and get interest' -> BANK 'The income of the bank increases' -> Borrowers 'People take loans / People repay loans with interest'.] Choose the correct option from the following. (a) The difference between the amount deposited and borrowed by the bank to Reserve Bank of India. (b) The difference of amount of interest between what is charged from borrowers and what is paid to depositors. (c) The difference of interest rate between what is charged from borrowers and what is charged from depositor. (d) The difference between the amount deposited by the depositor and borrowed by the borrower.
How is credit essential for economic activities? Explain with examples.
Board 2023 3 questions
Which one of the following is a formal source of credit?
(A) Relative
(B) Trader
(C) Money lender
(D) Cooperative Society
Explain any three functions of the Reserve Bank of India.
Explain the role of banks with regard to money which they accept from the public.
Board 2022 3 questions
How is 'Demand Deposit' an essential feature of money?
Differentiate between formal and informal sources of Credit.
How does a bank work as a key component of the financial system? Explain.
Frequently asked questions
What are the most important topics in CBSE Class 10 Social Science Money and Credit?
By how often and how recently they were asked: Formal and informal sources of credit; Money as a medium of exchange / double coincidence of wants; Self-Help Groups and rural credit.
How many marks does Money and Credit carry in the CBSE Class 10 Social Science exam?
Money and Credit is part of the Economics - Understanding Economic Development unit, which carries 20 marks in the official syllabus. In the analysed papers it had about 3.1 questions per paper.
Do questions from Money and Credit repeat in board exams?
Yes — 6 question patterns from this chapter appeared in two or more past board or official sample papers. They are listed on this page with the years they were asked.