Question 2 - True or False - Chapter 3 Class 10 Economics - Money and Credit - Economics

Which of the following statements are correct?

I. Cheques are paper orders which make it possible to transfer money from one person’s account to another person’s account.

II. No individual or organisation is allowed to issue currency notes in India.

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III. Banks give loans not only to profit-making businesses

IV. The RBI supervises the functioning of formal sources of loans.

Options:

A. I and II are true

B. Only III is true

C. I, II and IV are true

D. II and IV are true

Answer:

So the correct answer is (c) - I, II and IV are true.

Explanation

Let’s check all the statements

Statement I - Cheques are paper orders which make it possible to transfer money from one person’s account to another person’s account which is true.

Statement II - No individual or organisation is allowed to issue currency notes in India which is true.

Statement III - Banks give loans not only to profit-making businesses which is false.

Statement IV - The RBI supervises the functioning of formal sources of loans which is true.

Thus, option ‘c’ is correct.

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