Class 10 Social Science Chapter 12 – Financial Literacy Complete Question Answer | ASSEB / SEBA
Class 10 Social Science (Economics) Chapter 12 – Financial Literacy Complete Question Answers and Exam Solutions (ASSEB / SEBA Assam – English Medium)
The twelfth chapter of the Class 10 Social Science syllabus, ‘Financial Literacy’, is a highly practical and modern addition to the Economics section, designed to prepare students for real-world financial management. For the upcoming HSLC 2027 board examinations, we have systematically compiled a complete set of question answers (Class 10 Social Science Chapter 12 Question Answer) flawlessly mapped to the New ASSEB (Assam State School Education Board) Syllabus 2026-27 and the most recent exam blueprint. This exhaustive Question Bank features in-text Very Short Answers (VSA), Short Questions, Long Answers, and complete step-by-step solutions to Previous Years’ Board Exam Questions (PYQ). Ospin Academy delivers these meticulously crafted notes to ensure your absolute success.
This chapter explores the fundamental concepts of earning, saving, investing, and responsible borrowing. It also places a strong emphasis on modern digital banking, UPI transactions, financial planning, and awareness regarding cyber frauds and financial scams. Grasping these contemporary economic skills is vital for both the board exams and daily life. Our Question Bank ensures that you not only master the textbook exercises but also confidently tackle the Extra Board Questions and Answers that examiners frequently prioritize under the new education policy (NEP).
What you will learn and get from this chapter:
- A thorough understanding of the core concepts of financial literacy, including savings, credit, and investment instruments.
- Detailed explanations of digital banking, e-wallets, ATM usage, and safe online transaction practices.
- In-depth insights into financial planning and recognizing/preventing financial fraud.
- Accurate, board-ready answers for 1-mark objective questions (VSA/MCQ) related to banking terms and digital finance.
- Well-structured, comprehensive solutions for 2-3 marks short notes and 4-5 marks long descriptive questions regarding the importance of financial education.
Special benefits from Ospin Academy for the HSLC 2027 Exam:
- A fully updated Chapter 12 Question Bank structured perfectly according to the new ASSEB blueprint for HSLC 2027.
- Verified and complete solutions for newly introduced concept-based questions as well as Pre-Board question papers from diverse districts of Assam.
- 100% precise, premium quality study materials (Class 10 Economics Notes) written in lucid English to facilitate rapid learning.
- Easily downloadable PDF format (PDF Download) optimized for smart, on-the-go revision prior to the final exam.
- An expertly formulated list of 100% Common Board Suggestion questions to maximize your scoring potential in Economics.
Master the essential skills of the financial world and secure the Highest Marks in Social Science by starting your HSLC 2027 exam preparation with Ospin Academy today.
Class 10 Social Science Question Bank ASSEB HSLC 2027 | English Medium Chapter-wise Solutions PDF
Class 10: Social Science
Financial Literacy
HSLC English PYQs (2024–2026): Important MCQs with Answers
1. Suppose, you are travelling by bus from Guwahati to Dibrugarh and offer to pay your fare using a cheque. The conductor refuses to accept the cheque. Why can’t you bound the conductor to accept the cheque ? {2026}
(A) A cheque is not considered legal tender money, so nobody is legally bound to accept it.
(B) The conductor prefers only cash payments for convenience.
(C) The cheque is physically too large to handle.
(D) The conductor does not have time to visit a bank and encash it.
Answer: A
2. Who issues the currency in India ? {2026}
(A) State Bank of India
(B) All the nationalised banks of India
(C) Reserve Bank of India
(D) Central Government of India
Answer: C
3. Choose the correct statements regarding Black Money : {2026}
(i) The colour of Black Money is black.
(ii) It is related to tax evasion.
(iii) It is the product of an economic offence.
(iv) It goes to government exchequer.
(A) Statements (i) and (ii) are correct.
(B) Statements (ii) and (iii) are correct.
(C) Statements (i) and (iv) are correct.
(D) Statements (iii) and (iv) are correct.
Answer: B
4. Identify the incorrect statements stated below relating to cheque money: {2025}
(i) As a medium of exchange, a cheque has general acceptability.
(ii) Refusal to accept cheque money will mean violation of the law of the land.
(iii) Cheque money is generated through economic offence.
(iv) A cheque is a claim against money and can be exchanged at the counter of a bank.
(v) Only the Central Bank has the right to print and circulate cheque money.
(A) (i), (ii), (iii), (v)
(B) Only (i) is correct
(C) (ii), (iii) are correct
(D) (ii), (iii) are correct
Answer: A
5. In the following question, a statement of Assertion (A) is followed by a statement of Reason (R). Considering these statements, choose the correct option from the alternatives given below: {2025}
Assertion (A): Money is the most liquid asset.
Reason (R): Money can be converted directly and immediately into goods and services that the holder of the money wants.
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are true; and (R) is the correct explanation of (A).
(C) (A) is false, but (R) is true.
(D) Both (A) and (R) are true; but (R) is not the correct explanation of (A).
Answer: B
6. Ramen opens an account in Allahabad Bank with a sum of Rupees twenty thousand (20,000). After three months of opening, he again deposits 3,000 in his account. At the end of the financial year, bank credits a sum of $550 as interest. Considering the above situation, choose the type of bank account Ramen has. {2025}
(A) Current Deposit Account
(B) Fixed Deposit Account
(C) Recurring Deposit Account
(D) Savings Deposit Account
Answer: D
7. Identify two primary functions of money from the alternatives given below: {2024}
(i) Money is a medium of exchange.
(ii) Money acts as a standard of measurement of values of goods and services.
(iii) Money acts as a standard of deferred payments.
(iv) Money functions as store of value.
(A) (i) and (ii)
(B) (i) and (iii)
(C) (iii) and (iv)
(D) (ii) and (iv)
Answer: A
8. Identify two primary functions of money from the alternatives given below: {2024}
(i) Money is a medium of exchange.
(ii) Money acts as a standard of measurement of values of goods and services.
(iii) Money acts as a standard of deferred payments.
(iv) Money functions as store of value.
(A) (i) and (ii)
(B) (i) and (iii)
(C) (iii) and (iv)
(D) (ii) and (iv)
Answer: A
9. The name of the Central Bank of India is: {2024}
(A) State Bank of India
(B) Bank of Hindustan
(C) Reserve Bank of India
(D) United Bank of India
Answer: C
10. Where is the Headquarters of NABARD situated? {2024}
(A) In Kolkata
(B) In Mumbai
(C) In Chennai
(D) In New Delhi
Answer: B
11. Which of the following is not a function of commercial banks? {2024}
(A) The commercial bank mobilises savings.
(B) The commercial banks offer loans.
(C) The commercial banks can create credit money.
(D) The commercial bank issues paper currency.
Answer: D
Assam’s Various District Pre‑Board (2025–26) MCQs With Answers
1. Consider the following statement – {Bajali}
(A) Currency does not create social inequality.
(B) Weakness towards currency is the sole reason for the decline in social values.
(C) The blackmoney generated from currency enables the government to collect more revenue.
(D) If the value of currency is not stable, it creats several complex problems.
Answer: D
2. Suppose you have a goat and you need rice, your friend Runjun has a rice, but she does not want goat, she wants/need fish. {Bajali}
This problem in the barter system is termen as:
(A) Lack of double coincidence of wants.
(B) Lack of common unit of account.
(C) Indivisible of commodities.
(D) Lack a value of goods and service.
Answer: A
3. Find the correct answer: {Bajali}
(i) A server can withdraw his deposits from a bank through a cheque, but non-banking institutions do not provide cheque.
(ii) In banking there is a deposit insurance scheme for the saver, but non-banking institutions don’t have such insurance arrangement.
(A) Only (i) is correct
(B) Only (ii) is correct
(C) Both (i) and (ii) are correct
(D) Both (i) and (ii) are not correct
Answer: C
4. The headquarters of NABARD is in- {Baksa}
(A) Chennai
(B) Lucknow
(C) Mumbai
(D) Delhi
Answer: C
5. Match the Part-A with Part-B and choose the correct option: {Baksa}
Part-A
(A) Token money
(B) Animal money
(C) Non-legal tender money
(D) Commodity money
Part-B
(i) Cheque
(ii) Rice
(iii) Rs. 100 paper money
(iv) goat
(A) (a) → (iv); (b) → (i); (c) → (ii); (d) → (iii)
(B) (a) → (iii); (b) → (iv); (c) → (i); (d) → (ii)
(C) (a) → (ii); (b) → (iv); (c) → (iii); (d) → (i)
(D) (a) → (ii); (b) → (iii); (c) → (iv); (d) → (i)
Answer: B
6. Suppose you want to buy a book. The cost of book is Rs. 200. If you write a cheque for Rs. 200 and give it to the shopkeeper, the shopkeeper may or may not accept the cheque. If he does not accept the cheque you will not be able to stand up for law, because…….. {Baksa}
(A) Cheque is legal tender money.
(B) Cheque is non-legal tender money.
(C) Cheque is black money.
(D) Cheque is high power money.
Answer: B
7. Choose the function of the Central Bank- {Baksa}
(i) The Central Bank is the bankers bank
(ii) The Central Bank offers loans
(iii) The Central Bank issues currency
(iv) The Central Bank as a whole can create credit money
(A) (i), (ii) (iii) are correct and (iv) is incorrect.
(B) (i), (iv) are correct and (ii)and(iii) are incorrect.
(C) (i), (ii) and (iv) are correct and (iii) is incorrect.
(D) (i), (iii) are correct and (ii) and (iv) are incorrect.
Answer: D
8. Based on the following Assertion (A) and Reason (R) select the correct options: {Baksa}
Assertion (A):Commercial Bank, a part of the primary deposits is retained and the bank offer the other part as loan.
Reason (R): Sometime the savers will come to withdraw from the bank.
(A) Assertion (A) and Reason (R) both are correct and (R) is the correct analysis of (A).
(B) Both (A) and (R) are incorrect.
(C) (A) is correct and (R) is incorrect.
(D) Both (A) and (R) are correct, however, (R) is not the correct analysis of (A).
Answer: A
9. A person had to pay income tax of Rs5 lakhs to the government. However, he understated his income in his income tax return and paid only Rs 1 lakh. As a result, Rs 4 lakhs went loss from him to the government. What is the hidden Rs 4 lakhs called? {Barpeta}
(A) Dear money
(B) Hot money
(C) Black money
(D) Easy money
Answer: C
10. Two statements are given in the question below as Assertation (A) and Reason (R). Read the statements and choose the correct option. {Barpeta}
Assertation (A): Bank charge a higher interest on loans than what they offer on deposite.
Reason (R) : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.
(A) Both (A) and (R) are true, and (R) is the correct explination of (A)
(B) Both (a) and (R) are true, but (R) is not correct explination of (A)
(C) (A) is true, but (R) is false
(D) (A) is false, but (R) is true
Answer: A
11. Write in correct sequence according to the year of Establishment (old to new) {Barpeta}
(i) Reserve Bank of India
(ii) Gauhati Bank
(iii) NABARD
(iv) Bank of Hindustan
(A) iv, iii, ii, i
(B) iv, i, ii, iii
(C) iv, ii, i, iii
(D) iv, ii, iii, i
Answer: C
12. The Head quarter of Reserve Bank of India is located in – {Biswanath}
(A) Mumbai
(B) Delhi
(C) Chennai
(D) Guwahati
Answer: A
13. The first bank in Assam that was set up in entirely on local capital mobilisation ‘Guwahati’ Bank was set up in the year- {Biswanath}
(A) 1935
(B) 1926
(C) 1936
(D) 1925
Answer: B
14. The bank that provides loans at low rate of interest to the villagers and liberate them from the clutches of the private money lenders who charge extremely high rate of interest is – {Biswanath}
(A) NABARD
(B) Regional Rural Bank
(C) Central Bank
(D) SIDBI
Answer: B
15. Money that goes out of the country in the face of socio-economic disorder and uncertainty in the country is – {Biswanath}
(A) Cheap Money
(B) Hot Money
(C) Dear Money
(D) High power Money
Answer: B
16. Ajay wanted to buy a piece of land from Arup. The value of that land was Rs. 5 lakhs. Ajay wanted to pay Arup Rs. 5 Lakhs all in Rs. 10 notes but Arup wanted the money in Rs. 500 notes. So, he refused to take the money. What type of money that Ajay wanted to pay Arup? {Biswanath}
(A) Limited Legal tender money
(B) Unlimited Legal tender money
(C) Non Legal tender money
(D) Dear money
Answer: B
17. The oldest Central Bank was established in {Bongaigaon}
(A) In 1935
(B) In 1953
(C) In 1956
(D) in 1770
Answer: D
18. Which of the following are the functions of central Bank {Bongaigaon}
(i) The Central Bank issues currency
(ii) The Central Bank offers loan.
(iii) The Central Bank controls the volume of credit
(iv) The Central Bank is the bankers bank
(A) (i) and (ii)
(B) (i), (ii) and (iii)
(C) (ii), (iii) and (iv)
(D) (i), (iii) and (iv)
Answer: D
19. Name the first bank of Assam. {Cachar}
(A) Guwahati Bank
(B) State Bank of India
(C) Assam Gramin Bank
(D) Assam Co-operative Apex Bank Ltd.
Answer: A
20. The barter system unlike money lacks the feature of being a store of value. Which of the statements given below explains the disadvantage of the barter system? {Cachar}
(A) Goods can be used for deferred payments
(B) Goods are perishible and cannot be stored.
(C) Barter system needs the goods to be divisible to function.
(D) The value of a goods cannot be expressed in terms of money.
Answer: B
21. A man deposits 1000 in the bank. Then the bank keeps 20% and offers the rest as loan. The person who takes this Rs. 800 as loan gives it to another person who in turn deposits it in another bank. The next bank similarly keeps 20% of the money and offers Rs. 640 as loan. Another person takes the loan and gives it to another person who again deposits it in another bank. The same process is repeated and the total amount of deposit goes on increasing. This leads to {Cachar}
(A) Creation of credit
(B) Rise in inflation
(C) Growth of bank business
(D) Increase in employment opportunities
Answer: A
22. 1975: Regional Rural Bank :: 1982: ______ {Cachar}
(A) National Bank for Agriculture and Rural Development
(B) National Agricultural and Rural Bank
(C) National Rural Development Bank
(D) National Bank for Rural Agricultural Development
Answer: A
23. Which of these is not a function of the Central Bank? {Cachar}
(A) The central bank issues currency.
(B) The central bank is the bankers bank.
(C) The central bank never plays any promotional role.
(D) The central bank is the financial agent of the government.
Answer: C
24. Land, Gold, Silver are also assets like money but their liquidity is less than that of money because – {Dhubri}
(A) These are very precious
(B) These are not perishable
(C) These can not be instantly converted into goods
(D) These are not transferable
Answer: C
25. Write in correct sequence according to the year of establisment . (old to new) {Dhubri}
(A) Reserve Bank of India/ Gauhati Bank/Bank of Hindusthan/ NABARD
(B) Bank of Hindusthan/ Reserve Bank of India/ Gauhati Bank/ NABARD
(C) Bank of Hindusthan/ Gauhati Bank/ Reserve Bank of India/ NABARD
(D) Bank of Hindusthan/Gauhati Bank/NABARD/Reserve Bank of India
Answer: C
26. A) Credit money is created by the Central Bank.
B) Black money generated through economic offence. {Dhubri}
(A) A true B false
(B) A and B are true
(C) A false B true
(D) A and B are false
Answer: C
27. The Primary function of money is – {Dhubri}
(A) Medium of exchange
(B) Store of value
(C) Standard of deferred payments
(D) General acceptability
Answer: A
28. Where the traditional barter system still prevails in Assam ? {Dhubri}
(A) Bhogali Mela
(B) Bohagi Mela
(C) Rongpur Mela
(D) Jonbeel Mela
Answer: D
29. The apex financial institution among all the institutions related to investment and production in the rural areas is – {Goalpara}
(A) NABARD
(B) SIDBI
(C) IDBI
(D) RRB
Answer: A
30. The chronological order of money evolution are- {Goalpara}
(A) Paper money → Barter System → Animal Standard → Metalic Standard → Coinage
(B) Animal Standard → Paper money → Barter System → Coinage → Metalic Standard
(C) Barter System → Animal Standard → Metalic Standard → Coinage → Paper money
(D) Barter System → Metalic Standard → Animal Standard → Coinage → Paper money
Answer: C
31. Read the situation and answer the question: {Hailakandi}
A fisherman catches 500 kgs of fish in one day, which is far more than his family needs. He wants to save this value to buy warm clothes in the winter, which is six months away.
What is the fundamental challenge the fisherman faces in the Barter System?
(A) The fish can easily be exchanged for 500 kg of gold.
(B) The problem of ‘double coincidence of wants’.
(C) Difficulty in storing value, as fish is a perishable commodity.
(D) He needs a different type of transport system.
Answer: C
32. Read the situation and answer the question: {Hailakandi}
A businessman takes a loan to day and agrees to pay it back in monthly installments over the next three years. This is possible because money serves as a :
(A) Standard of Deferred Payment
(B) Medium of Exchange
(C) Measure of Value
(D) Unit of Account
Answer: A
33. Match the banks with their correct establishment years. {Hailakandi}
Bank/Institution
1.Reserve Bank of India (RBI)
2.State Bank of India (SBI)
3.NABARD
4.SIDBI
Establishment Year
A. 1982
B. 1935
C. 1990
D. 1955
(A) 1-B, 2-D, 3-A, 4-C
(B) 1-A, 2-B, 3-C, 4-D
(C) 1-B, 2-А, 3-D, 4-C
(D) 1-D, 2-C, 3-B, 4-A
Answer: A
34. Assertion (A): Money acts as a medium of exchange. {Jorhat}
Reason (R): People accept money in return for goods and services because it is legally authorized.
(A) Both (A) and (R) are true, and R is the correct explanation of A.
(B) Both (A) and (R) are true, But R is not the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.
Answer: A
35. Which is the oldest Central Bank in the World? {Jorhat}
(A) Riksbank of Sweden
(B) Deutsche Bundesbank of Germany
(C) Reserve Bank of Australia
(D) Reserve Bank of India (RBI)
Answer: A
36. The fourth stage of the evolution of money is {Kamrup M}
(A) Metallic standard
(B) Coinage
(C) Paper Money
(D) Animal Standard
Answer: B
37. Bina paid a cheque after shopping at Rita’s shop. But Rita did not accept the cheque. Bina approached the law but to no avail. Because- {Kamrup M}
(A) Cheques are not signed by the Governor of the RBI
(B) Acceptance of cheques are not legal.
(C) Rita’s account was not in the Bank where Bina gave the cheques.
(D) All the above.
Answer: B
38. Find the odd one out : {Kamrup R}
(A) Russia — Rouble
(B) China — Yuan
(C) India — Rupee
(D) France — Peso
Answer: D
39. Ananya’s 500 rupee note is torn, but the bank accepts it and exchanges it for a new one.
What property of money is shown here. {Kamrup R}
(A) Durability
(B) Divisibility
(C) Legal tender
(D) Transferability
Answer: C
40. When was the first bank of India established ? {Kamrup R}
(A) 1778
(B) 1779
(C) 1770
(D) 1800
Answer: C
41. An assamese tea seller exports tea to another country and receives payment in the foreign currency, which he then exchanges for Indian rupees.
Which institution plays a role in regulating this foreign exchange? {Kamrup R}
(A) Commercial Bank
(B) Co-operative Bank
(C) Reserve Bank of India
(D) Post-office savings Bank
Answer: C
42. Money that goes out of the country is called— {Kamrup R}
(A) Hot money
(B) money
(C) Black money
(D) Fiat money
Answer: A
43. Observe the following statements and choose the correct answer. {Kamrup R}
i) A cheque is a legal tender money
ii) An individual can refuse to accept a cheque.
(A) i is correct ii is incorrect
(B) i is incorrect ii is correct
(C) Both are correct
(D) Both are incorrect
Answer: B
44. SIDBI’s head office is in — {Kamrup R}
(A) Mumbai
(B) Kolkata
(C) Chennai
(D) Lucknow
Answer: D
45. The first Bank setup in India in 1770 was- {Kokrajhar}
(A) State Bank of India
(B) World Bank
(C) Punjab and Sindh Bank
(D) Bank of Hindusthan
Answer: D
46. Moyna opens an account in SBI branch will a sum of Rupees ten thousand (10000). After one month of opening, she deposits Rs. 15000 more in her Account.At the end of the financial year, bank credits a sum of Rs. 275 as himself. Consideing the above situation; choose the type of bank account Moyna has- {Kokrajhar}
(A) Saving Deposit Account
(B) TimeCeposit Account
(C) Recurring Deposit Account
(D) Current Deposit Account
Answer: A
47. The full form of IDBI is- {Kokrajhar}
(A) Industry Development Bank of India
(B) Industrial Developing Bank of India
(C) Industrial Development Bank of India
(D) Industry Developing Bank of India
Answer: C
48. Ramala aunty opened an account with Rs 500 in the Bandhan Bank when the village councilor informed her that she would receive funds from the government’s Arunodoi scheme.
After one month, the scheme funds of Rs. 1250 were deposited. A few days later, he withdrew Rs.
1000 from the bank. Again, the scheme funds are deposited monthly and a portion of the deposit is withdrawn.
Sometimes the money from the sale of poultry is also deposited in the bank.
Earned some interest at the end of the year. He considers the information and selects the type of bank account in Ramala aunty.
Form the above information, identify the types of bank account Ramala opened: {Lakhimpur}
(A) Fixed Deposit Account
(B) Current Account
(C) Savings Account
(D) Recurring Deposit Account.
Answer: C
49. Identify the main functions of the Central Bank {Lakhimpur}
(i) The Central Bank prints paper currency.
(ii) The Central Bank controls the quality of money.
(iii) The Central Bank works as a the provider of finance to the Government.
(iv) The Central Bank acts as the bank of banks.
(A) (i), (ii)
(B) (i), (ii)
(C) (i), (iii), (iv)
(D) (i), (ii), (iii), (iv)
Answer: D
50. Which of the following is a function of Commercial Bank- {Lakhimpur}
(A) Accepting deposits
(B) Giving Loan
(C) Creation of Credit currency
(D) Printing of paper currency
Answer: A, B, C
51. Head office of the SIDBI- {Lakhimpur}
(A) Mumbai
(B) Lucknow
(C) Delhi
(D) Calcutta
Answer: B
52. Which of the following is not a Characteristic of the currency {Lakhimpur}
(A) Currency is the medium of exchange
(B) Currency should be easy to identify
(C) It must have general acceptability
(D) It must have the quality of Liquidity
Answer: A
53. Arrange the following as per the establishment year (old to new) {Nagaon}
(A) Reserve Bank of India – Guwahati Bank – Bank of Hindustan – Industrial Development Bank of India
(B) Bank of Hindustan – Reserve Bank of India – Guwahati Bank – Industrial Development Bank of India
(C) Reserve Bank of India – Guwahati Bank – Industrial Development Bank of India – Bank of Hindustan
(D) Bank of Hindustan – Guwahati Bank – Reserve Bank of India – Industrial Development Bank of India
Answer: D
54. A famous T.V. actor Rahul Deepak is arrested because of tax evation.
In this case what type of money is created in the economy. {Nagaon}
(A) Hot money
(B) Black money
(C) Easy money
(D) Standard money
Answer: B
55. In ‘SIDBI’ S stand for {Nagaon}
(A) State
(B) Savings
(C) Small
(D) Simple
Answer: C
56. Which of the following are the primary functions of money? {Nalbari}
(i) Money performs the function of a medium of exchange
(ii) Money acts as a standard of deferred payment
(iii) Money acts as a standard of measurement of values of goods and services.
(iv) Money functions as the store of value
(A) i, ii
(B) i, iii
(C) i, iv
(D) ii, iii
Answer: B
57. Match the following institutions with their establishment year and choose the correct option – {Nalbari}
(a) IDBI
(b) RRB
(c) NABARD
(d) SIDBI
(i) 1990
(ii) 1982
(iii) 1975
(iv) 1964
Options:
(A) a → iv, b → iii, c → i, d → ii
(B) a → iv, b → iii, c → ii, d → i
(C) a → iii, b → i, c → iv, d → i
(D) a → iii, b → i, c → iv, d → ii
Answer: B
58. Your friend Abhisek’s father paid the price of car to the car dealership by cheque while buying the car.
Which category of money did the value paid by him to the car dealership? {Sibsagar}
(A) Standard money
(B) Near money
(C) Cheap money
(D) Paper money
Answer: B
59. Arrange the stages of the evolution of money in the correct sequence- {Sibsagar}
(i) Metalic Standard
(ii) Animal Standard
(iii) Barter System
(iv) Paper money
(v) Coinage
Options:
(A) i – ii – iv – v – iii
(B) ii – iii – v – iv – i
(C) i – iii – v – iv – ii
(D) iii – ii – i – v – iv
Answer: D
60. The Apex Financial Institution among all the institutions related to investment and production in the rural area is- {Sibsagar}
(A) Central Bank of India
(B) Regional Rural Bank
(C) NABARD
(D) State Bank of India
Answer: C
61. The name of the central Bank of India – {Sonitpur}
(A) Central Bank of India
(B) Bank of Hindustan
(C) Bank of India
(D) Reserve Bank of India.
Answer: D
62. Four stages of evolution of money in order are – {Sonitpur}
(A) Paper Money – Metallic Money – animal Money – Barter System
(B) Barter System – Animal Money – Metallic Money – Paper Money
(C) Barter System – Paper Money – Animal Money – Metallie Money
(D) Animal Money – Metallie Money – Barter System – Paper Money
Answer: B
63. Which Bank is empowered and authorised to print paper currency. {Sonitpur}
(A) Bank of India
(B) National Bank of India
(C) Central Bank
(D) Bank of Sweden
Answer: C
64. Which of the following is not a function of reserve Bank of India. {Sonitpur}
(A) Banker to the Banks.
(B) Credit Controller
(C) Custodian of foreign reserves
(D) Allotment of funds to the farmers directly.
Answer: D
65. Rima receives a merit scholarship of Rs. 20,000 for her good academic results. {Sribhumi}
She goes to the bank with her father and deposits Rs. 20,000 at 10% interest for 5 years.
Find the type of savings based on the above situation.
(A) Current deposits
(B) Fixed deposit.
(C) Savings deposits
(D) Recurring deposits
Answer: B
66. Arrange the evolution of money according to historical period {Sribhumi}
i) Metallic Money
ii) Barter System
iii) Paper Money
iv) Non-metallic Standard
(A) i → ii → iii → iv
(B) ii → iv → i → iii
(C) iii → iv → i → ii
(D) iv → i → ii → iii
Answer: B
67. The five stages in the process of evolution of money are- {Salmara}
(A) Barter system → Animal standard → Metallic Standard → Coinage → Paper money
(B) Barter system → Animal Standard → Coinage → Metallic Standard → Paper money
(C) Barter system → Coinage → Animal Standard → Metallic Standard → Paper money
(D) Barter system → Animal Standard → Coinage → Paper money → Metallic Standard
Answer: A
68. Identify the Bank from the characteristics mention below : {Salmara}
i. Issues Currency
ii. Controls the volume of credit.
iii. Bankers bank
iv. Promotional role to play in development.
(A) Commercial Bank
(B) Regional Rural Bank
(C) Central Bank
(D) World Bank
Answer: C
69. “Anything that is generally acceptable as a medium of exchange is money” who said this? {Salmara}
(A) George Chisholm
(B) Darken Wald
(C) Zimmermann
(D) Geoffrey Crowther
Answer: D
70. Bhanita went to Gyandeep Book Depot to buy the book named “Assam Year Book 2025”.
The price of the book is ₹ 500/-. As Bhanita forgot her money bag at home, the shopkeeper asked her to pay with a scanner. She paid with the help of the scanner without giving cash.
This transaction, which happened without the actual transfer of currency, is an example of which system? {Udalguri}
(A) Internal Banking
(B) Liquidity of Money
(C) General Utility Service
(D) Banking Agency Service
Answer: A
71. Below are the two statements, one identified as Assertion A and the other as Reason R.
Consider the statements and choose the most appropriate answer. {Udalguri}
Assertion A): The concept of ‘accounting’ does not change, only the actual currency transfer happens.
Reason R): This concept is clearly expressed at the stage of evolution of money where actual currency transfer happens.
(A) Both A) and R) are true; and (R) is the correct explanation of (A).
(B) A) is true, R) is false.
(C) A) is false, R) is true.
(D) Both A) and R) true, but R) is not the correct explanation of A).
Answer: A
72. Match the column (A) with column (B): {Udalguri}
Column A:
(a) banck
(b) banko
(c) banke
(d) bank
Column B:
(i) Italy
(ii) England
(iii) French
(iv) German
(A) a-iv, -i, c-iii, d-ii
(B) a-iii, b-i, c-iv, d-ii
(C) a-ii, b-iii, c-i, d-iv
(D) a-iv, b-iii, c-i, d-ii
Answer: A
73. Which of the following functions refers to the exclusive right of the central bank? {Udalguri}
(A) Printing paper money
(B) Providing finance to the government
(C) Performing the function of a banker’s bank
(D) Controlling deposit money or credit money
Answer: A
Probable Multiple Choice Questions with Answers for HSLC 2027
1. What is the system of direct exchange of goods for goods called?
(A) Monetary system
(B) Barter system
(C) Credit system
(D) Banking system
Answer: B
2. What is the most necessary and indispensable characteristic of money?
(A) General acceptability
(B) Durability
(C) Visibility
(D) Weight
Answer: A
3. In India, who prints the one-rupee note and all types of coins?
(A) Reserve Bank of India
(B) Ministry of Finance, Government of India
(C) State Bank of India
(D) NABARD
Answer: B
4. When was the central bank of India, the ‘Reserve Bank of India’ (RBI), established?
(A) 1935
(B) 1949
(C) 1950
(D) 1969
Answer: A
5. Which of the following types of money is called ‘Fiat Money’?
(A) Cheque
(B) Draft
(C) Paper notes and coins
(D) Credit card
Answer: C
6. When was the Reserve Bank of India nationalized?
(A) 1935
(B) 1945
(C) 1949
(D) 1950
Answer: C
7. When was the first bank in India, the ‘Bank of Hindustan’, established?
(A) 1770
(B) 1806
(C) 1866
(D) 1921
Answer: A
8. Which of the following banks is known as the ‘Banker’s Bank’?
(A) State Bank of India
(B) Reserve Bank of India
(C) NABARD
(D) Punjab National Bank
Answer: B
9. Which is the apex financial institution providing credit for agriculture and allied activities in rural areas?
(A) Reserve Bank of India
(B) IDBI
(C) NABARD
(D) SIDBI
Answer: C
10. When was NABARD established?
(A) 1975
(B) 1982
(C) 1990
(D) 1992
Answer: B
11. Which of the following falls under the ‘Primary Function’ of money?
(A) Store of value
(B) Medium of exchange
(C) Standard of deferred payments
(D) Transfer of value
Answer: B
12. The deposit in a bank from which a customer can withdraw money at any time through a cheque is called:
(A) Fixed deposit
(B) Current deposit
(C) Recurring deposit
(D) Savings deposit
Answer: B
13. Generally, on which bank account does the bank provide the highest interest to the customer?
(A) Current deposit account
(B) Savings deposit account
(C) Fixed deposit account
(D) Recurring deposit account
Answer: C
14. Which of the following is an example of a Non-Banking Financial Company (NBFC)?
(A) State Bank of India
(B) Bank of Baroda
(C) Life Insurance Corporation of India (LIC)
(D) Bandhan Bank
Answer: C
15. Which bank was established by the Government of India for the development of small-scale industries?
(A) IDBI
(B) SIDBI
(C) NABARD
(D) RRB
Answer: B
16. Which quality of money gives it the power to be used immediately in exchange for any goods or services?
(A) Liquidity
(B) Durability
(C) Divisibility
(D) Portability
Answer: A
17. What is the money called when its intrinsic value is less than its face value?
(A) Standard money
(B) Token money
(C) Money of account
(D) Representative money
Answer: B
18. What is the full form of ATM?
(A) Any Time Money
(B) Automatic Teller Machine
(C) Automated Teller Machine
(D) Automatic Transfer Money
Answer: C
19. When were the Regional Rural Banks (RRBs) first established in India?
(A) 1969
(B) 1975
(C) 1980
(D) 1982
Answer: B
20. What kind of money is a Cheque in reality?
(A) Legal Tender
(B) Bank money or Near money
(C) Fiat Money
(D) Token Money
Answer: B
21. What kind of relationship exists between the Value of Money and the Price Level?
(A) Proportionate relationship
(B) Inverse relationship
(C) No relationship
(D) Parallel relationship
Answer: B
22. Money that a person is legally bound to accept in payment is known as:
(A) Universally acceptable money
(B) Legal Tender Money
(C) Optional money
(D) Bank money
Answer: B
23. Which of the following is termed as ‘Plastic Money’?
(A) Cheque
(B) Bank draft
(C) Credit card and Debit card
(D) One-rupee note
Answer: C
24. What is a primary function of a commercial bank?
(A) Printing paper currency
(B) Providing financial advice to the government
(C) Accepting deposits from the public and advancing loans
(D) Regulating the foreign exchange rate
Answer: C
25. Where is the head office of the Reserve Bank of India located?
(A) New Delhi
(B) Kolkata
(C) Mumbai
(D) Chennai
Answer: C
26. Match Column A with Column B and select the correct option:
Column A (Institution)
(a) RBI
(b) NABARD
(c) SIDBI
(d) IDBI
Column B (Year of Establishment)
(i) 1964
(ii) 1982
(iii) 1935
(iv) 1990
(A) (a)-iii, (b)-ii, (c)-iv, (d)-i
(B) (a)-i, (b)-ii, (c)-iii, (d)-iv
(C) (a)-iii, (b)-iv, (c)-ii, (d)-i
(D) (a)-iv, (b)-iii, (c)-ii, (d)-i
Answer: A
27. Arrange the evolution of money in chronological order from oldest to newest:
(i) Paper money
(ii) Barter system
(iii) Plastic money (ATM, Credit Card)
(iv) Metallic money
(A) (ii) → (i) → (iv) → (iii)
(B) (ii) → (iv) → (i) → (iii)
(C) (iv) → (ii) → (i) → (iii)
(D) (i) → (ii) → (iii) → (iv)
Answer: B
28. Which of the following statements about commercial banks is incorrect?
(A) It accepts deposits from the public.
(B) It operates with the objective of earning a profit.
(C) It can directly print and issue new paper currency into the market.
(D) It creates credit money.
Answer: C
29. Suppose Rahul wants to open a small bakery and needs a loan to buy machinery. In the Indian financial system, which bank is specifically established to assist such small-scale industries?
(A) NABARD
(B) SIDBI
(C) LIC
(D) RBI
Answer: B
30. What is the main difference between a Central Bank and a Commercial Bank?
(A) A Central bank grants loans; a commercial bank does not.
(B) A Central bank is controlled by the government and its main objective is public welfare, whereas a commercial bank’s main objective is earning profit.
(C) A Central bank deals directly with the general public.
(D) A commercial bank regulates the monetary system of the country.
Answer: B
31. Consider the following statements and choose the correct answer:
(i) ‘Lack of double coincidence of wants’ was a major problem in the barter system.
(ii) Money acts as a measure of value.
(iii) Every person is legally bound to accept a cheque.
(A) Only (i) and (ii) are correct
(B) Only (ii) and (iii) are correct
(C) Only (i) and (iii) are correct
(D) All (i), (ii), and (iii) are correct
Answer: A
32. Match Column A with Column B:
Column A
(a) Current Deposit
(b) Savings Deposit
(c) Fixed Deposit
Column B
(i) Money can be withdrawn only after a specific period, highest interest rate.
(ii) Money can be withdrawn at any time, generally no interest is paid.
(iii) Suitable for common people, a limited amount of interest is earned.
(A) (a)-ii, (b)-iii, (c)-i
(B) (a)-iii, (b)-i, (c)-ii
(C) (a)-i, (b)-ii, (c)-iii
(D) (a)-ii, (b)-i, (c)-iii
Answer: A
33. What is a major limitation of ‘Non-Banking Financial Companies’ (NBFCs)?
(A) They cannot accept money from customers.
(B) They cannot provide loans.
(C) They cannot accept chequeable deposits and cannot create credit money.
(D) They cannot earn profits.
Answer: C
34. Which of the following activities establishes commercial banks as the ‘Creator of Credit’?
(A) Accepting cash deposits from customers.
(B) Keeping a fraction of the deposited money as a reserve, lending out the rest to other customers, and the process of that loaned money returning to the bank as deposits.
(C) Providing locker facilities.
(D) Issuing drafts and traveler’s cheques.
Answer: B
35. Which of the following paper currencies does not bear the signature of the ‘Governor of the Reserve Bank of India’?
(A) 100 Rupee note
(B) 500 Rupee note
(C) 50 Rupee note
(D) 1 Rupee note
Answer: D
36. Match Column A with Column B (Functions of money):
Column A
(a) Measure of value
(b) Store of value
(c) Standard of deferred payments
Column B
(i) Saving for the future
(ii) Making borrowing and lending easy
(iii) Determining the price of goods
(A) (a)-iii, (b)-i, (c)-ii
(B) (a)-i, (b)-ii, (c)-iii
(C) (a)-iii, (b)-ii, (c)-i
(D) (a)-ii, (b)-i, (c)-iii
Answer: A
37. What was the primary objective of establishing Regional Rural Banks (RRBs)?
(A) To provide loans to large industries in urban areas.
(B) To strengthen the rural economy by providing easily accessible credit to small farmers, agricultural laborers, and rural artisans.
(C) To assist in international trade.
(D) To print the paper currency of the country.
Answer: B
38. Who performs the role of the ‘Clearing House’ in the banking system?
(A) State Bank of India
(B) Ministry of Finance
(C) Reserve Bank of India
(D) NABARD
Answer: C
39. In the current digital era, the use of ‘Mobile Banking’ and ‘UPI’ has most significantly facilitated which function of money?
(A) Storing as a reserve of value
(B) Rapid transfer of value
(C) Opening new bank branches
(D) Printing new paper currency
Answer: B
40. Which of the following is NOT an essential quality of ‘Good Money’?
(A) Cognizability
(B) Durability
(C) Heaviness
(D) Divisibility
Answer: C
41. Assertion (A): The invention of money eliminated the problem of the ‘lack of double coincidence of wants’ of the barter system.
Reason (R): Because money possesses the quality of general acceptability, it started functioning as a common medium of exchange.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
42. Assertion (A): The Reserve Bank of India (RBI) is the central bank of India.
Reason (R): RBI directly accepts deposits from the general public.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: C
43. Assertion (A): A Cheque is not legal tender money.
Reason (R): No individual can be legally forced to accept a cheque; its acceptance relies purely on mutual trust.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
44. Assertion (A): Commercial banks can create credit money.
Reason (R): Commercial banks have the monopoly right to print paper currency.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) Both (A) and (R) are false.
Answer: C
45. Assertion (A): There is an inverse relationship between the value of money and the price level.
Reason (R): When the prices of goods (price level) increase in the market, the purchasing power or value of money decreases.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
46. Assertion (A): NABARD is the apex financial institution for agriculture and rural development.
Reason (R): NABARD provides loans directly to farmers.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) Both (A) and (R) are false.
Answer: C
47. Assertion (A): Paper money is called token money.
Reason (R): The intrinsic value of the paper used to make the money is much less than the face value printed on it.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
48. Assertion (A): The Life Insurance Corporation (LIC) is a Non-Banking Financial Company (NBFC).
Reason (R): LIC collects money from the public as premiums, but unlike commercial banks, it cannot accept chequeable deposits and cannot create credit money.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
49. Assertion (A): The ‘Savings Account’ is most suitable for businessmen who make numerous transactions daily.
Reason (R): Banks provide the highest interest rate on ‘Current Accounts’.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) Both (A) and (R) are false.
Answer: D .
50. Assertion (A): Money acts as a standard of deferred payments.
Reason (R): This function of money has made the process of borrowing at present and repaying in the future easy.
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Answer: A
HSLC PYQs (2016–2026): Important 2/3 Marks Short Questions
HSLC PYQs (2016–2026): Important 2‑ and 3‑Mark Short Questions
1. ‘The commercial bank offers loans. Farmers, artisans, industrialists, thelawallas, rickshaw pullers and others receive loans.’
State any two probable consequences if the commercial banks stop offering loans to people belonging to deprived sections of society such as farmers, artisans, thelawallas, rickshaw pullers etc.{2026}
2. Suppose you are at a hardware store to purchase some goods and willing to pay your bill amount by cheque. But the store owner is refusing to accept the payment by cheque and asks you to pay by cash. You do not have cash with you.{2025}
3. What do you think why the store owner is refusing to accept the cheque? Suggest any alternative way of purchasing your goods that day. {2025}
4. What is called Current Deposit? {2023}
5. What is Bank? Mention its one important role. {2022}
6. What is Barter? Mention two disadvantages of Barter System. {2022}
7. Is a Cheque money? Give arguments in favour of your answer. {2020}
8. What is NABARD? What are its main functions? {2020}
9. When was it established? Mention its two primary functions. {2020}
10. Discuss the main functions of the Reserve Bank of India. {2019}
11. What are the disadvantages of Barter system? {2019}
12. Write two demerits associated with money. {2018}
13. Write two main functions of National Bank for Agricultural and Rural Development (NABARD). {2018}
14. Write two main functions of Regional Rural Banks (RRB). {2017}
15. What is barter system? Mention two different of Barter system. {2016]
16. When and why the North-East Development Finance Corporation was established? {2016}
District Pre Board (2025–26): Important 2 Marks Short Questions
1. What is the difference between non-banking institutions and banking institutions? {Bajali}
2. Suppose you buy a notebook and books from a shop and pay the shopkeeper Bhutanese rupees in exchange, but the shopkeeper does not accept Bhutanese rupees. Why doesn’t the shopkeeper accept it? Argue in your support. {Barpeta}
3. Is a cheque money? Give arguments in favour of your answer. {Bongaigaon}
4. How does the central bank act as a banker to banks? Write briefly. {Darrang}
5. In a rural village, farmers exchange wheat for vegetables and clothes. Often, transactions fail because both parties do not need each other’s goods at the same time. Storing grains for long periods also leads to spoilage. {Hailakandi}
Questions:
(i) Identify the problem of the barter system shown in the case.
(ii) How does money solve the problem of double coincidence of wants?
6. What is representative paper money? {Kokrajhar}
7. Is a cheque money? Show your logic. {Majuli}
8. The first stage of the evolution of money exists in our district. Where and how is this first stage seen? {Morigaon}
9. Which characteristic of money is the most important and why? {Morigaon}
10. Zahidur earned money by selling vegetables grown in his vegetable garden and deposited the amount into his bank account. Which functions of money are reflected in this action of Zahidur? {Sibsagar}
11. What functions do Regional Rural Banks perform? {Sribhumi}
12. How are the Non-Banking Financial Institutions different from the banks? {Salmara}
13. Non-Banking financial institutions like banks also collect savings or deposits from savers and lend those savings to various people. Why are these institutions not called banks? {Udalguri}
District Pre Board (2025–26): Important 3 Marks Long Questions
14. Provide comparative explanations between the barter system and money. {Barpeta}
15. Following the RBI’s decision to increase the interest rate upto 17.5% in 2008, a new money was introduced in the country. Name it and how it was introduced? {Kamrup M}
16. What are the courses offered by NABARD in the field of agriculture and rural development? {Kamrup M}
17. Do you think the growth of institutions like LIC and NABARD reduces the burden of commercial banks? Evaluate with three arguments. {Kamrup R}
District Pre Board (2025–26): Important 4/5 Marks Long Questions
18. How can a commercial bank create credit money? Explain with the help of an example. {Darrang}
19. Write the functions of a commercial bank. {Goalpara}
20. Mention the period of the first phase of economic planning in India. Write the major objectives of economic planning at this period. {Goalpara}
21. Briefly explain any two functions of each of the following:
a) IDBI
b) NABARD
c) Regional Rural Bank {Jorhat}
22. Explain any four functions of the Central Bank. {Jorhat}
23. What do you mean by Liquidity of money? {Kamrup R}
24. Write any four functions of the Central Bank. {Nalbari}
25. Explain the main functions of the Central Bank. {Sribhumi}
26. Write a short note on Globalisation and Liberalisation. {Sribhumi}
Some Important Most Probable 2 Marks Questions for HSLC 2027
1. What is the Barter System?
2. Write two essential characteristics required for a commodity to serve as money.
3. What is ‘Fiat Money’? Give an example.
4. Why is a cheque called ‘bank money’ or ‘near money’?
5. Write any two main functions of the Reserve Bank of India (RBI).
6. What is meant by a ‘Clearing House’ in the banking system?
7. Write two differences between a ‘Current Deposit’ and a ‘Fixed Deposit’ in a commercial bank.
8. What is a ‘Non-Banking Financial Company’ (NBFC)? Give two examples.
9. What was the main objective behind the establishment of NABARD?
10. What do you understand by the ‘Liquidity of Money’?
Some Important Most Probable 3 Mark Questions for HSLC 2027
11. Briefly discuss any three major difficulties of the Barter System.
12. Mention the significance and disadvantages of ‘Metallic Money’ in the evolution of money.
13. What are the ‘Primary Functions’ of money? Explain briefly.
14. Write three main differences between a Central Bank and a Commercial Bank.
15. How do commercial banks create ‘Credit Money’? Explain briefly.
16. Discuss the functions of the Small Industries Development Bank of India (SIDBI).
17. Why were Regional Rural Banks (RRBs) established? Write two of their main functions.
18. What do you understand by the ‘Value of Money’? Describe its relationship with the price level.
19. “Without general acceptability, no commodity can become money.” — Explain this statement with appropriate logic.
20. Clarify the concepts of ‘Representative Paper Money’ and ‘Convertible Paper Money’ as classifications of money.
Some Important Most Probable 4 Mark Questions for HSLC 2027
21. How did the invention of money eliminate the difficulties of the barter system? Discuss in detail.
22. Give a detailed description of the role and functions of the Central Bank (like RBI) in a country’s economy.
23. Systematically classify and discuss the main functions of money (primary, secondary, and contingent functions).
24. What is a commercial bank? Discuss its primary functions (accepting deposits and advancing loans) in detail.
25. “The banking system is the nerve center of a modern economy.” – Analyze the importance of banks in modern economic development.
