Question 10 - MCQ Questions (1 Mark) - Chapter 3 Class 10 Economics - Money and Credit - Economics

Last updated at July 13, 2026 by

Banks do not give loans to:

(A) small farmers.

(B) marginal farmers.

(C) industries.

(D) people without proper collateral and documents.

 

Answer:

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So, the correct answer is (D) - people without proper collateral and documents.

Explanation

  • Banks give loans to people with collateral because collateral is an asset that the borrower owns and it acts as a guarantee for the banks that the borrower can pay back the loan. 

Checking all the options:

  • Small farmers have their land as collateral.
  • Marginal farmers have land as collateral.
  • Industries have their machinery and land as collateral.
  • People without proper collateral and documents does not have any asset as collateral so banks do not give loan to them.

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